Terayon Communication Systems (fka TERN)

[SEBASS]

TERN: Another article about Merger & Acquisition.

http://www.cable360.net/cfax/regulatory/national/20485.html

Friedman Billings says their recent industry checks suggest that TERN may be getting closer to filing audited financial statements with the SEC. They believe the filing would reflect restatements of FY04 and FY05 financials in the wake of improper revenue-recognition practices during 2004. The firm thinks such a filing would clearly be a positive for the shares, as it would finally lift a major overhang on the entire co and could suggest an eventual return for the shares to the NASDAQ national market. Perhaps more importantly, the firm thinks this could represent a step toward reopening M&A discussions with interested parties, as they believe an earlier sale process has been on hold pending the finalization of the audit.

M&A is short for Merger & Acquisition.