Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (116638)	1/31/2001 9:50:39 PM
From: Mark Fowler	Read Replies (1) \| Respond to of 164684

Listen Gst On Tern the whole Telecom sector is slow. Tern is not a bad company i think they'll turn it around when telecom sector does. I'm just thinking it might be dead money for awhile. This wasn't new news that just come out so be patient. But thats up to you? Terayon Expects Lower Revenues and Earnings Loss in Fourth Quarter SANTA CLARA, Calif., Dec. 18 /PRNewswire/ -- Terayon Communication Systems, Inc. (Nasdaq: TERN), a leading supplier of broadband networking systems, today announced that it expects revenues and earnings for the fourth quarter 2000 to be significantly less than previously anticipated, due to the cancellation of orders late in the quarter and an unexpected slowdown in the growth of orders for its products by existing and new customers. As a result of the current economic outlook, the Company believes that its customers have had sufficient inventory levels as they face uncertainty in the growth of deployment rates in 2001. The Company, which reported revenues of $38.7 million in the fourth quarter a year ago, said it expects revenues in fourth quarter 2000 to be in the range of $60 to $63 million, below its previous internal forecasts. Terayon grew its operating expenses and inventory in the fourth quarter in anticipation of substantially greater revenue growth, consistent with the Company's performance in earlier quarters this year. Additionally, there is a possibility that Terayon may incur vendor cancellation charges of approximately $20 million in connection with the discontinuation of one of its DOCSIS cable modem products. Without these special charges, Terayon expects to report a pro forma loss for the fourth quarter 2000 of between $34 and $36 million, or a loss per share of 46 to 49 cents. Including these cancellation charges, the pro forma loss would increase by approximately 28 cents per share. Based on these results, the Company will be revising downward its internal operating plan for 2001. Terayon CEO Zaki Rakib said, "We are very disappointed with these results. Based on our assessment of Terayon's core competencies and our outlook for the market segments that we serve, the Company has decided to reorganize around two industry segments: highly differentiated, high margin broadband infrastructure equipment and high volume, lower margin customer premise equipment. We believe that this reorganization will allow Terayon to better serve its customers and enhance shareholder value going forward by allowing the market to better assess the value of its businesses. Beginning in the first quarter of 2001, we will also undertake measures to re-align the Company's costs of operation to the new organization." Furthermore, Mr. Rakib added, "With the recent achievement of milestones in the Company's development of advanced physical layer technology, Terayon intends to create a separate business focused on next generation, DOCSIS system-on-the-chip solutions." Terayon will conduct a conference call concerning this announcement on Thursday, December 21, at 2:00 p.m. (PST)/5:00 p.m. (EST). A live audio webcast will be available at www.streetfusion.com and www.terayon.com . A recording of this call will be available for replay through Wednesday, December 27. The telephone number for the replay is 703-925-2435 and the confirmation code is 4855869. About Terayon: Terayon Communication Systems provides innovative broadband systems and solutions for the delivery of advanced, carrier-class voice, data and video services, which are deployed by the world's leading cable, telco and satellite network operators and carriers. Terayon, headquartered in Santa Clara, California, has sales and support offices worldwide, and is traded on the Nasdaq under the symbol TERN. Terayon can be found on the web at www.terayon.com .

To: GST who wrote (116638)	1/31/2001 9:56:59 PM
From: Mark Fowler	Respond to of 164684

TA CLARA, Calif., Jan. 30 /PRNewswire/ -- Terayon Communication Systems, Inc. (Nasdaq: TERN), a leading supplier of broadband access systems, today reported revenues of $62.9 million and a pro forma net loss of $0.77 per share for the fourth quarter ended December 31, 2000. Revenues for the fourth quarter of 2000 were up 63 percent compared to the fourth quarter of 1999. Pro forma net loss was $50.8 million for the quarter, versus net income of $1.2 million for the same period last year. Revenues for the 12 months ending December 31, 2000 increased to $339.5 million, an increase of 250 percent compared with the year ended December 31, 1999. Pro forma net loss for the year was $0.56 per share, or $34.5 million, versus a pro forma net loss of $8.2 million, for the year ended December 31, 1999. "In the year 2000, we expanded Terayon's customer base and footprint," said Zaki Rakib, chief executive officer of Terayon. "We diversified our product line through strategic acquisitions and made important technological strides." The pro forma results exclude non-cash charges for in-process research and development, the amortization of intangible assets related to acquisitions, stock compensation and the cost of certain warrants to purchase common stock. The actual net loss for the fourth quarter of 2000 was $1.38 per share, or $91.6 million, versus a net loss of $19.0 million for the same period last year. The actual net loss for the year ended December 31, 2000 was $2.95 per share, or $180.8 million, compared to a net loss of $64.1 million, for the year ended December 31, 1999. Gross margin for the fourth quarter 2000 declined as a result of lower than expected revenues, a shift in the mix of product shipped during the quarter, a significant increase in inventory reserves and a special charge of $19 million for vendor cancellation fees. During the fourth quarter, Terayon submitted to CableLabs the Company's Advanced Physical Layer prototype, including the modem and head-end. Terayon's prototype includes FA-TDMA, and the combination of FA-TDMA and S-CDMA on a single chip, which cover the current two solutions under consideration. Simultaneous with its announcement of financial results, Terayon today also announced further details of its reorganization. Under this strategic plan, 1) Terayon has reduced its net headcount by approximately 13% in the first quarter of 2001. The Company plans to recruit senior management with specific skills to enhance its capabilities in new and existing, high-growth and high-margin segments. 2) Terayon has initiated its advanced broadband communication chipset division to capitalize on its core and unique technological capabilities. 3) Terayon is reprioritizing its investments within key growth segments of cable access (data, voice and video), telecom carriers' optical and copper transport, and chipset solutions.