Terayon Suffers Revenue Drop


Terayon Communication Systems Inc. saw its revenue drop sharply in the third
quarter, from $79.6 million last year to $24.5 million, but strong cost controls
minimized the company's pro forma net loss to $26.4 million compared with $27.6
million last year.

Terayon said it continues to drive operating expenses lower, targeting $20
million by first-quarter 2003, excluding Imedia Semiconductor Corp.

CEO Zaki Rakib said in a prepared statement that Terayon is banking on cable
deployments of Data Over Cable Service Interface Specification 2.0 modem sales
for future growth.

'Though the telecommunications industry remains challenging, we believe the
growing deployments of our DOCSIS 2.0-based modems, combined with our expanded
relationships with the top MSOs, should present opportunities for out DOCSIS
2.0-based CMTS [cable-modem-termination system],' Rakib said in a