Terayon Communication Systems posted Q4 revenues of $43 million, up 70 percent year-over-year, as it continued to transition from proprietary broadband products to equipment based on DOCSIS 2.0 and other standards. The company also narrowed its net loss to $6 million (8 cents per share) from $20.5 million (28 cents per share) a year ago.

Terayon also made moves to reduce operating expenses and reorganize during the first quarter of 2004, including a layoff of 70 employees, which equates to about 17 percent of its staff, some facility consolidation and facility asset write-downs.

Terayon said the decisions are expected to save the company $10 million to $12 million per year. The company also expects to record a charge of $5 million to $7 million as a result of those measures.

"As we announced in December, 2003, we are targeting profitability beginning in the second quarter of 2004," said Doug Sabella, Terayon's chief operating officer.

Looking ahead, Terayon said it expects to report Q1 revenues in the range of $39 million to $42 million and a net loss of 7 cents to 9 cents per share, excluding restructuring charges.