Terayon to Focus on Digital Video

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Terayon Communication Systems Inc. announced a restructuring Thursday to focus solely on its digital-video applications.

The vendor said it aims to reduce its overall cost structure as a pure-play video business.

Terayon is reviewing strategic alternatives for its “Home Access Solutions” product line, including the opportunity to monetize its current investment in working capital.

As part of its restructuring, the company expects to record charges of approximately $600,000 for employee-related costs, in addition to other restructuring costs, the majority of which are expected to occur during the first quarter of 2006, Terayon said.

“Our decision to concentrate solely on digital-video applications enables us to laser-focus the company on a growing market for real-time network digital-video processing and expand our applications and services,” CEO Jerry Chase said in a prepared statement.

“Network operators worldwide in cable, satellite, telco and mobile understand that they must customize digital-video-programming services and advertising to become more relevant to their individual customers,” he added.

Chase continued, “The move to customizing content the instant before viewing creates substantial opportunity for Terayon, particularly in the area of digital-video advertising, as it builds on our existing core competencies and market leadership. Localizing services and advertising plays strongly to the core strength exhibited in our award-winning ‘CherryPicker’ product line.”

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