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Technology Stocks : Terayon Communications Systems -- Ignore unavailable to you. Want to Upgrade?

To: gdichaz who wrote (29)	8/3/1998 10:05:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 48

Chaz: I would have thought that S-CDMA's advantage for old-fashioned coax networks would have given it an edge with cable operators such as TCI, since TCI has an older plant. Unfortunately John Malone has fallen in love with advanced cable modem technology and has just been successful in recruiting a wealthy sugar daddy (T) to support the extremely expensive upgrade of its infrastructure. The bottom line is that Terayon needs to recruit a big cable operator to back S-CDMA. This operator could then exercise some muscle in the DOCSIS standards battle. Actually, I think our discussion is academic. Given the current rotten state of the market, there is close to zero probability that Terayon's IPO will take place. Its current sponsors will probably lack the stomach for the massive losses (my guess: about $35M on top of the current accumulated $45M in losses) needed to carry Terayon until it develops its multimode modem. They will probably look for a buyer. A Japanese company might be interested, since S-CDMA has been well received in Japan. This assessment will probably look pessimistic to the followers of George Gilder's newsletter, but Terayon came to the cable modem market about 18 months too late. Best regards, Bernard Levy