Terayon Restructures to Pure-Play Digital Video Company
January 26 2006 - 3:34PM
PR Newswire (US)
SANTA CLARA, Calif., Jan. 26 /PRNewswire-FirstCall/ -- Terayon
Communication Systems, Inc. (NASDAQ:TERNE), a leading provider of
video localization-on-demand solutions, today announced a
restructuring to focus the company's strategy solely on its digital
video applications and reduce its overall cost structure as a
pure-play video business. "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," said Jerry Chase, Terayon,
CEO. "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. 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(R) product line." As
part of the company's move to 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 the restructuring,
Terayon expects to record charges of approximately $0.6 million for
employee related costs in addition to other restructuring costs,
the majority of which are expected to occur in the first quarter of
2006. Chase continued, "We are now structured to take advantage of
what we do best. By focusing on digital video, we expect to drive
our strategic goals of increased market penetration and improved
financial performance. With the savings we obtain from the
restructuring, we intend to allocate additional resources for
digital video software application development to pursue new
revenue-generating video opportunities. Through our focus and
partnerships with key industry players and existing customer
relationships in the cable, satellite and telco markets, Terayon is
well positioned for success." About Terayon Terayon Communication
Systems, Inc. provides real-time digital video networking
applications to cable, satellite and telecommunication service
providers worldwide, which have deployed more than 6,000 of
Terayon's digital video systems to localize services and
advertising on-demand and brand their programming, insert millions
of digital ads, offer HDTV and other digital video services.
Terayon maintains its headquarters in Santa Clara, California; has
sales and support offices worldwide and is on the web at
http://www.terayon.com/. "Safe Harbor" Statements under the Private
Securities Litigation Reform Act of 1995: Except for historical
information contained in this press release, the matters discussed
in this press release are forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
subject to a number of risks and uncertainties that may cause
actual results to differ materially from those contained in the
forward-looking information. Such forward-looking statements
include, but are not limited to, statements relating to the nature
and expected outcome of Terayon's accounting review, statements
relating to the strategic alternatives for the HAS product line,
statements related to the expected reduction in operating expenses
and expected charges associated with the restructuring, and other
statements that are not historical facts. The following factors,
among others, could cause actual results to differ from those set
forth in the forward-looking statements: the timing and success of
any hearing before a NASDAQ Listing Qualifications Panel, the
timing and results of the completed review into possible accounting
errors, the timing of the filing of Terayon's Form 10-Q for the
third quarter of fiscal year 2005, the timing and filing of
Terayon's proxy statement for its 2005 annual shareholders meeting,
the need for any corrective actions in connection with Terayon's
accounting practices, the actual timing and extent of any
restatement of prior financial results, the reaction to any such
restatement by Terayon's stockholders and customers, the timing and
extent of actual restructuring charges, as well as changes in
economic, business, competitive, technological and/or regularly
factors and trends. Additional factors that may affect future
results are contained in Terayon's SEC reports, including its most
recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, particularly in the "Risk Factors" and "Management Discussion
and Analysis of Financial Condition and Results of Operations"
sections. Such filings are available at the SEC's website
http://www.sec.gov/. Terayon disclaims any obligation or intent to
update and revise the statements contained in this release based on
new information or otherwise. Note: Terayon and the Terayon logo
are registered trademarks of Terayon Communication Systems, Inc.
All other trademarks are property of their respective owners.
DATASOURCE: Terayon Communication Systems, Inc. CONTACT: press,
Rebecca West of AtomicPR, +1-415-402-0230, or , for Terayon; or
investors, Kirsten Chapman or Moriah Shilton, both of
Lippert/Heilshorn & Associates, +1-415-433-3777, or , for
Terayon Web site: http://www.terayon.com/
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