Broadband equipment supplier Terayon Communication Systems said fourth quarter revenues dropped 68 percent to $25 million, and its net loss widened to $20.5 million (28 cents per share) versus $6.2 million (9 cents per share) in the same year period.

For the fiscal year, Terayon reported revenues of $129.4 million, down 54 percent from full-year 2001, while its net loss narrowed significantly to $44.2 million (61 cents per share) in 2002 compared to $563.8 million ($8.25 per share) in 2001.

Though Terayon's revenues in the fourth quarter were down year-over-year, it did see some traction for its DOCSIS 2.0 products, including sales to U.S. MSOs such as Adelphia Communications, Comcast Corp., Cox Communications and Time Warner Cable.

Terayon said it shipped a total of 218,000 modems and 175 cable modem termination systems during the quarter. Geographically, 71 percent of Terayon's revenues were generated from business in North America.

In a call with analysts and reporters Thursday afternoon, Terayon noted that it became the first vendor to win DOCSIS 2.0 approval from CableLabs for a cable modem and a cable modem termination system during the fourth quarter. At the end of wave 24, Terayon won 2.0 certification for its TJ715 modem and its BW3500 CMTS. Terayon could retain that claim until at least July, when CableLabs concludes certification wave 26. No vendors submitted CMTS equipment for 2.0 qualification in wave 25, which kicked off last week.

Terayon chipmaker Imedia Semiconductor also made progress in the quarter, reporting that two vendors had won DOCSIS certifications on modems based on Imedia's silicon and reference design. One, Taiwan-based Kinpo Electronics Inc., gained DOCSIS 1.1 certification using the Imedia IM6030 chipset.