Increased MSO capital spending, coupled with the deployment of new broadband services, contributed to stronger revenues for three major cable equipment vendors.

Terayon Communication Systems posted Q3 revenues of $37.6 million, up 54 percent from the year-ago quarter, and a 23 percent jump from Q2. Terayon attributed the revenue rise to higher demand for its DOCSIS 2.0 and digital video products.

That wasn't enough to offset a net loss of $7.2 million (10 cents per share), narrowed from a net loss of $16 million (22 cents per share) in the year-ago quarter.

"We are encouraged by an improving trend in cable operator capital spending and believe that we are well positioned for revenue growth in the fourth quarter," said company CEO Zaki Rakib, in a statement.

In Q4, Terayon expects to report revenue of between $40 million to $43 million, and net loss in the range of 7 to 9 cents per share.

Arris said Q3 revenues jumped 11 percent to $113.1 million. The company also recorded a net loss of $14.6 million (19 cents per share), narrowed from 37 cents per share in Q2 2003.

Arris' broadband product division posted revenues of $75 million, up 13 percent, while revenues at its supplies product unit rose 8 percent to $38.1 million.

The vendor said sales to Comcast Corp. were $35.8 million during the period, down slightly from $36.1 million a year ago.

"The industry conditions that have impacted our company for the past several quarters appear to be improving," said Arris Chairman, President & CEO Bob Stanzione, in a statement. "Although overall industry capital expenditures are forecast to continue to decline into 2004, we believe Arris revenues will increase next year as cable operators accelerate their offerings of high-speed data and prepare for rollouts of VoIP."

Arris forecasted Q4 revenues of between $105 million to $115 million, with a net loss in the range of 12 cents to 20 cents per share, including amortization of intangibles. also enjoyed a fat increase in fiscal Q1, reporting net sales of $54.8 million, up 27 percent from the same-year period. C-COR also posted a profit of $4.8 million, up from a net loss of $7.3 million in Q1 2002.

Looking ahead, the company expects Q2 net sales of between $57 million and $60 million (4 cents to 7 cents per share).

Time will soon tell whether the upward trend will continue for cable's vendors. Concurrent Computer Corp. and Scientific-Atlanta will release their quarterly figures Thursday afternoon.