Terayon Communications Systems Inc. reported lower fourth-quarter-2004 revenue and a higher net loss, a result of the company's decision to leave the cable-modem market and concentrate on digital-video-networking gear.
Terayon reported a net loss of $7.9 million in the quarter on revenue of $29.4 million, compared with a net loss of $6 million on revenue of $43 million in the year-earlier period.
The year-over-year figures looked better, however, with Terayon lowering its net loss to $36.4 million in 2004 versus $50.4 million in 2003 as revenue climbed from $133.5 million to $150.5 million.
Terayon pointed out that revenue in its digital-video division jumped from $17.7 million in 2003 to $37 million in 2004.
"Our fourth-quarter results reflect our decision to focus Terayon on our digital-video-network applications and home-access solutions and to cease investment in future development of our CMTS [cable-modem-termination-system] products," CEO Jerry Chase said in a prepared statement.
"The strong performance of our digital-video products during the fourth quarter and 2004 clearly shows why we moved video to the center of our corporate strategy," he added.