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Technology Stocks : Terayon - S CDMA player (TERN) -- Ignore unavailable to you. Want to Upgrade?

To: Platter who wrote (68)	3/10/1999 9:53:00 PM
From: SteveG	Respond to of 1658

BTAB HIGHLIGHTS: -Terayon announced a deal with UPC (OTC--UPCOY), a leading cable operator in Europe. -UPC selected Terayon based on its modem's capacity, reliability and attractive migration path to standards (TERN is an author of DOCSIS 1.2) -Increases revenue and earnings potential. Not raising our estimates at this time -Potentially adds $4mm to revenue and $0.04 per share to earnings in 1999 $15-$20mm in revenue and $0.15-$0.20 in earnings in 2000. -Reiterate Strong Buy rating on the shares. DETAILS: Terayon (OTC--TERN) announced a deal with UPC (OTC--UPCOY) to be the primary supplier of cable modems and headend systems. Terayon is due to deliver 225,000 modems in the next 2 years. UPC is one of the largest cable operators in Europe and passes 4.9M homes in 11 countries. Its Cello broadband division is like an @Home for Europe and has the potential to further extend UPC's Internet footprint. Underscores thesis that Terayon's strong technology and service are enabling the Company to further extend its footprint as well as helping it to drive standards (Terayon is an author of the next generation cable modem standard, DOCSIS 1.2). UPC selected Terayon based on its modem's capacity, reliability and attractive migration path to standards. Increases revenue and earnings potential. While we are not raising our estimates at this time, we expect the deal will add $4mm to revenue and $0.04 per share to earnings in 1999 (the majority in 4Q, with some in 3Q), and add $15-$20mm in revs and $0.15 - $0.20 per share in earnings to 2000. We note that not all of the announced modems are additive to our model. Reiterate Strong Buy rating on the shares.