Terayon Reports Strong 2^nd Quarter 2004 Results

SANTA CLARA, Calif., July 28/Satnews Daily/ -- Terayon Communication Systems, Inc. (NASDAQ:TERN) has released its financial results for the quarter ended June 30, 2004 showing revenues grew to $42.8 million, an increase of 40% compared to $30.6 million for the second quarter of 2003. Revenue rose by 4% from $41.2 million for the first quarter of 2004.

However, the company continued to suffer from net loss of $4.9 million for the second quarter of 2004, equivalent to $0.06 per share. The company said, however, this compares favorably to a net loss of $13.1 million, or $0.18 per share, for the second quarter of 2003 and a net loss of $10.2 million, or $0.14 per share, for the first quarter of 2004.

The results for the second quarter of 2004 include a charge of $3.6 million, or $0.04 per share, related to restructuring activities and executive separation payments. The results for the first quarter of 2004 included a charge of $3.4 million, or $0.05 per share, related to restructuring activities and related asset write-offs.

"We are pleased with the record sales of our Digital Video Solutions product line, and the strong sales performance of our Subscriber product line," said Zaki Rakib, Terayon's CEO. "Our video business is benefiting from the increased number of HDTV offerings by cable and satellite operators, combined with growing demand for the Terayon CherryPicker's unique digital ad insertion capabilities.”

Terayon's Digital Video Solutions product line had revenues of $7.5 million in the second quarter of 2004, compared to $3.7 million in the second quarter of 2003 and $6.1 million in the first quarter of 2004. The Subscriber product line had revenues of $25.0 million in the second quarter of 2004, compared to $17.0 million in the second quarter of 2003 and $23.8 million in the first quarter of 2004. The CMTS product line had revenues of $10.3 million in the second quarter of 2004, compared to $8.6 million in the second quarter of 2003 and $11.1 million in the first quarter of 2004.