Broadband access technology company Terayon Communications Systems (Nasdaq:TERN) reported a loss of $4.9 million ($0.06 per share) on revenue of $42.8 million for the second quarter of 2004. The results are in line with the company's guidance. The revenue figure was 40% higher than the $30.6 million for the second quarter of 2003, and 4% higher than the $41.2 million for the first quarter of 2004.
The results for the second quarter of 2004 include a charge of $3.6 million, or $0.04 per share, related to restructuring activities and executive separation payments. The results for the first quarter of 2004 included a charge of $3.4 million, or $0.05 per share, related to restructuring activities and related asset write-offs.
For the third quarter of 2004, Terayon said it expected to report revenue in the range of $38 million to $41 million, and a net loss in the range of $0.02 to $0.04 per share.
Terayon CEO Zaki Rakib said, "We are pleased with the record sales of our Digital Video Solutions product line, and the strong sales performance of our Subscriber product line.
"Our video business is benefiting from the increased number of HDTV offerings by cable and satellite operators, combined with growing demand for the Terayon CherryPicker's unique digital ad insertion capabilities. While our CMTS sales were weaker than expected due to slower than anticipated deployments from existing customers - particularly in Asia and to a lesser degree in Europe - combined with increased competition, we believe recent actions we've undertaken will enable us to improve our sales execution and win new business in these regions. "Today we've also announced that Jerry Chase is joining Terayon as its new CEO. We believe that under Jerry, Terayon is well positioned to capitalize on its leadership in digital video solutions and on our one year plus industry leadership in delivering the only end to end DOCSIS 2.0 solutions as cable operators accelerate the roll out of advanced services to their customers," said Rakib. "In my new role as chairman of the board, I look forward to assisting Terayon achieve its mission of bringing the power of broadband to anyone, anywhere, at any time."
Terayon also announced the resignation of Arthur T. Taylor from his role as Senior Vice President, CFO. Taylor is leaving to assume the role of CFO of a larger, publicly traded company. Edward Lopez, Terayon's Senior Vice President, General Counsel since 1999, has been appointed acting CFO. Terayon said it had begun a search for Taylor's successor.
Terayon shares closed at $1.85 on Nasdaq yesterday, 2.78% down on the day, giving the company a market cap of $139.76 million.
Published by Globes [online] - www.globes.co.il - on July 27, 2004