Terayon’s 2Q Looks to Improve


Terayon Communication Systems Inc. now expects that the second quarter won’t
be as bad as previously thought, issuing a revised earnings estimate that
trimmed losses while boosting revenue.

The Santa Clara, Calif.-based maker of cable modems and
digital-television-management systems is now estimating that revenue for the
second quarter, which ended June 30, will fall between $30 million and $31
million, up from its previous estimate of $24 million to $28 million.

The red ink won’t be as heavy, either. Terayon is now estimating its net loss
per share for the quarter at between 18 cents and 20 cents, compared with its
original loss estimate of 20 cents to 24 cents.

It also looks to be an improvement from the prior quarter, when revenues
dipped to $22.3 million and the vendor’s net loss per share was 33 cents.

The company credited the improvement to higher unit shipments of its Data
Over Cable Service Interface Specification 2.0 cable-modem-termination system
units, an unanticipated order for its "Multigate" circuit-switched
cable-telephony system from a European customer and increased sales of its
legacy synchronous code-division multiple-access (S-CDMA) products.

"We are also pleased to see the continued positive momentum in our DOCSIS 2.0
cable-modem business, as unit sales increased by approximately 25% over the
first quarter of 2003," CEO Zaki Rakib said in a release.

Terayon will release its second-quarter earnings July 30.