Motorola Completes Terayon Acquisition
Vendor to Become Part of Home and Networks Mobility Business Unit
By Todd Spangler -- Multichannel News, 7/20/2007 9:54:00 AM EDT
Motorola announced Friday that it completed the acquisition of Terayon Communication Systems, the video-processing-equipment company specializing in managing and manipulating digital-programming streams.
Terayon becomes a wholly owned subsidiary of Motorola, part of the Home and Networks Mobility business unit, which was formally announced this week. Motorola said it will maintain Terayon’s operations in Santa Clara, Calif.
Terayon’s products include the CherryPicker, a video-processing system that enables digital-ad insertion, as well as motion and graphical overlays.
Motorola announced plans to buy Terayon in April, and Terayon shareholders approved the deal June 28.
Motorola said it expects the transaction to be neutral to earnings per share in 2007, excluding certain noncash charges relating to amortization and other one-time accounting and transaction-related costs. For 2006, Terayon reported $76.4 million in revenues and a net loss of $3.8 million.
Terayon, which had about 114 employees, restated financial results for its previous five fiscal years in December 2006, after it spent one year investigating accounting practices related to revenue recognition. Financial strain on the company resulted in layoffs in January 2006, when Terayon said it would focus on digital-video applications.
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