Terayon Communication Systems (fka TERN)

[SEBASS]

Terayon for sale article dated 31 Oct 06 12:57

http://www.globes.co.il/serveEN/globes/docView.asp?did=1000147589&fid=1176

Terayon, as mentioned earlier, is another company on the ‘Scandal-Sale’ exit route, at least to judge by the rumors and the trading on the market. Since plummeting to a low of $0.74 at the end of July, and its subsequent delisting from Nasdaq and transfer to the Pink Sheets, Terayon has doubled its price, ending last Friday’s session at $1.50. The doubling in price was seen in large volumes, even though the company has yet to give an indication as to the date for the publication of its restated results for previous years, without which it cannot re-apply for listing on Nasdaq’s regular market.

Who could possibly be interested in Terayon and what it has to offer, after its collapse from a company with a multibillion market cap to one worth less than $100 million? Video is the key word here. At a time when the entire world is talking about video broadcasting over the Internet and on cellular handsets, someone apparently took note of Terayon’s video technology, which is sold primarily to cable television companies.

As cable, fixed line telephony and cellular companies battle for the supply of video to private consumers, there are those which apparently want to get a toehold in the hot field of Internet protocol television (IPTV) equipment. They appear to have taken an interest in Terayon’s flagship product called “CherryPicker,” and some people say it still has key technological advantages in video signal compression. It is believed that once it has put the restatement of its past results behind it, Terayon will be up for sale to the highest bidder.

Published by Globes [online], Israel business news - www.globes.co.il - on October 31, 2006

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