Terayon Receives Letter From NASDAQ Due to Delayed Filing of Form 10-Q
23 November 2005 - 8:30AM
PR Newswire (US)
SANTA CLARA, Calif., Nov. 22 /PRNewswire-FirstCall/ -- Terayon
Communication Systems, Inc. (NASDAQ:TERNE), a leading provider of
digital video networking applications and home access solutions,
announced today that because of the delay in filing its Quarterly
Report on Form 10-Q for the period ended September 30, 2005, the
company has received a letter, dated November 17, 2005, from The
NASDAQ Stock Market notifying it that Terayon's stock is subject to
delisting because it is in violation of NASDAQ Marketplace Rule
4310(c)(14), which requires the timely filing of periodic reports
with the Securities and Exchange Commission (SEC). Terayon intends
to request a hearing before a NASDAQ Listing Qualifications Panel.
This request will automatically stay the delisting of Terayon's
common stock pending the Panel's issuance of a written decision
following the hearing. At the hearing, Terayon intends to request
that the Panel grant it an extension of time to become current in
its SEC filings and to demonstrate compliance with all requirements
for continued listing. However, there can be no assurance that the
Panel will grant Terayon's request. As a result of the delay in
filing its Form 10-Q, Terayon's trading symbol was changed from
'TERN' to 'TERNE' on November 21, 2005. Terayon announced on
November 7, 2005 its delay in filing the Form 10-Q as the company
is reviewing the recognition of revenue for certain transactions
during prior periods. Terayon initiated the review after
determining that certain revenues recognized in the second half of
fiscal year 2004 from a customer may have been recorded in
incorrect periods. The revenue matters under examination relate to
the timing of revenue recognition and may result in a restatement
of prior period financials. Terayon cannot determine at this time
when the investigation will be completed, but the company intends
to file its Form 10-Q for the third quarter of 2005 as soon as
practicable following the conclusion of the investigation. The SEC
has informed Terayon that it has initiated an informal inquiry into
the matters discussed in the November 7, 2005 press release.
Terayon intends to cooperate fully with the SEC's inquiry. About
Terayon Terayon Communication Systems, Inc. (NASDAQ:TERNE) provides
digital video networking applications and home access solutions
that enable the delivery of advanced digital video, voice and data
services. Service providers worldwide have deployed more than 6,000
of Terayon's digital video systems to brand their programming,
insert millions of digital ads, offer HDTV and other digital video
services. More than five million Terayon cable modems and other
home access solutions have been deployed by cable operators
globally to provide broadband Internet access and VoIP telephony.
Terayon maintains its headquarters in Santa Clara, California; has
sales and support offices worldwide. "Safe Harbor" Statements under
the Private Securities Litigation Reform Act of 1995: This press
release contains forward-looking statements, which involve a number
of risk and uncertainties. Any forward-looking information is not a
guarantee of future performance and actual results could differ
materially from those contained in the forward-looking information.
Such forward-looking statements include, but are not limited to,
statements relating to the nature of Terayon's accounting review,
statements relating to the expected outcome of Terayon's accounting
review, and other statement that are not historical facts. The
following factors, among others, could cause actual results to
differ from those set forth in the forward-looking statements: the
timing and success of any hearing before a NASDAQ Listing
Qualifications Panel, the results of the completed review into
possible accounting errors, the timing of the filing of Terayon's
Form 10-Q for the third quarter of fiscal year 2005, the need for
any corrective actions in connection with Terayon's accounting
practices, the actual timing and extent of any restatement of prior
financial results, the reaction to any such restatement by
Terayon's stockholders and customers, as well as changes in
economic, business, competitive, technological and/or regularly
factors and trends. Additional factors that may affect future
results are contained in Terayon's most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q, particularly in the
"Risk Factors" and "Management Discussion and Analysis of Financial
Condition and Results of Operations" sections. Such filings are
available at the SEC's website http://www.sec.gov/. Terayon
disclaims any obligation to update and revise statement contained
in this release based on new information or otherwise. NOTE:
Terayon and the Terayon logo are registered trademarks of Terayon
Communication Systems, Inc. All other trademarks are property of
their respective owners. DATASOURCE: Terayon Communication Systems,
Inc. CONTACT: investors, Kirsten Chapman or Moriah Shilton, , both
of Lippert/Heilshorn & Associates, Inc., +1-415-433-3777, for
Terayon; or press, John Giddings, Corporate Communications of
Terayon, +1-408-486-5260, or Web site: http://www.terayon.com/
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