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Terayon seeks alternatives for modem, eMTA line

Fri, 01/27/2006 - 6:13am
Jeff Baumgartner, CED

Terayon Communication Systems' transformation into a company squarely focused on digital video took another step forward this week.

Late Thursday, the company said it is "reviewing strategic alternatives" for its Home Access Solutions product line, which includes cable modems and multimedia terminal adapters (MTAs). That decision, which could produce a sale of that product line, will result in a Q1 restructuring charge in the neighborhood of $600,000. Terayon has not disclosed how many employees could be laid off as a result.

Terayon's latest move all but releases the vendor from its DOCSIS roots. In Oct. 2004, the company announced plans to cease investment in its cable modem termination system (CMTS) product line.

Company Vice President of Marketing Kanaiya Vasani said the decision completes a restructuring initiated in late 2004, and gives Terayon the ability to sets its digital video  sights squarely on cable and satellite, as well as the emerging telco, mobile and Internet video sectors.

"It makes sense for us to focus all of our resources and energies around this [digital video] product line...and this high growth market," he said.

"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," said Terayon CEO Jerry Chase, in a statement.

Terayon will continue to support its existing cable modem and MTA customers and honor its obligations related to those products, Vasani said.

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