Terayon Cuts Staff, Launches Chip Division
By Jeff Baumgartner -- Multichannel News, 1/30/2001 7:18:00 PM
Declaring that 2001 will be 'a year of transition and rebuilding,' Terayon Communication Systems Inc. said it had slashed 13 percent of its work force in the wake of disappointing fourth-quarter numbers, but the vendor acknowledged that some of those positions could be made up via the launch of a new chip-set division.
Speaking during a conference call with reporters Tuesday, Terayon CEO Zaki Rakib said most of the head-count reduction would come from the company's cable-modem-development division.
Rakib noted that a number of its partners canceled Data Over Cable Service Interface Specification equipment purchases during the quarter. Still, Terayon shipped 193,000 DOCSIS and proprietary cable modems and 438 cable headends during the period.
He added that Terayon has created a new business unit that will create and sell advanced broadband chip sets based on interoperable DOCSIS standards. Those chips will be used in Terayon cable modems and also sold to other cable-modem vendors, he said.
Rakib added that Terayon had submitted its 'advanced physical layer' cable-modem and headend prototypes to Cable Television Laboratories Inc., including FA-TDMA (frequency division/time-division multiple access) and the combination of FA-TDMA and Terayon's S-CDMA (synchronous code-division multiple access) modulation scheme.
CableLabs is currently evaluating a number advanced PHY options for possible inclusion in future DOCSIS specifications.
Although Terayon has scrapped a new line of customer-premises-equipment DOCSIS cable modems, the company has no current plans to exit that particular line of business, Rakib said.
A company spokesman confirmed that Terayon plans to continue manufacturing and shipping its DOCSIS 1.0-certified 'TeraJet' models. Terayon's '110' cable modem includes an Ethernet port and its '210' model features universal-serial-bus support.
Terayon reported a higher-than-expected fourth-quarter pro forma loss of $50.8 million, or 77 cents per share, down from a profit of $1.2 million (2 cents) in the same-year period. Analysts had expected the company to lose 41 cents per share in the fourth quarter. Terayon said fourth-quarter revenues surged 63 percent to $62.9 million.
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