Terayon Communication Systems reported lower first quarter revenues, but remained undaunted in its hopes that DOCSIS 2.0 will serve as the vendor's financial and competitive salvation.

In the period, Terayon posted revenues of $22.3 million, down 61 percent from $57.2 million in the year-ago period. Terayon also reported a net loss of $24 million (33 cents per share), widened considerably from a net loss of $4.1 million (6 cents per share) a year earlier. A restructuring charge of $3.2 million, the result of a layoff announced last month, contributed to a wider loss during the period.

Despite the downward trend, Terayon said it is encouraged by the traction it is getting with operators in respect to the company's DOCSIS 2.0 cable modems and cable modem termination systems.

Terayon said four of the top five U.S. cable operators are testing or conducting field trials of its DOCSIS 2.0-qualified BlueWave 3500 CMTS and deploying its 2.0-certified TJ715 modem. One MSO in the top five has made plans to move on a full-scale DOCSIS 2.0 deployment, Terayon said, but was not more specific.

Terayon shipped 261,000 cable modems in the quarter. Of that figure, 228,000 units were DOCSIS 2.0-certified.

Looking ahead, Terayon said it expects to post Q2 revenues in the range of $24 million to $28 million, and a net loss of between 20 cents to 24 cents per share.