Terayon Restructures to Pure-Play Digital Video Company
Santa Clara, California - January 26 2006 -- Terayon Communication
Systems, Inc. (NASDAQ: TERNE), a leading provider of video
localization-on-demand solutions, today announced a restructuring
to focus the companys 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
delivered 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 product
line.
Credit Pacific Service Union As part of the companys 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.
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Credit First Service Union 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.
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Card Credit Mobile Service About Terayon
Terayon Communication Systems, Inc. (NASDAQ: TERNE) provides
real-time digital video networking applications to cable, satellite
and telecommunication service providers worldwide, which have
deployed more than 6,000 of Terayons 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 www.terayon.com.
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