The steep downward trend in tech stocks continues. Terayon is another one of many companies to cut its revenue projections for 4Q 2000. Not only is Terayon downgrading its estimates, the company says it expects to post a hefty loss. The company blames slowing growth and many order cancellations for its cable and satellite products and systems.
Terayon's announcement, which prompted several analysts to lower their ratings on the stock, sent the company's shares plummeting $8.31, or 61 percent, to $5.25 at the end of trading Monday. The stock opened Tuesday at $4 15/16.
Terayon also says it plans to reorganize its business into two industry segments — broadband-infrastructure equipment and customer premise equipment — in an effort to serve customers better and enhance the value of its business. And no doubt to turn its sad stock price around.