IPO Company Profile
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Terayon Communication Systems
2952 Bunker Hill Lane, Santa Clara, CA 95054 * (408) 727-4400

The company develops, markets and sells cable modem systems that enable cable operators to cost-effectively deploy reliable two-way broadband access services.

Primary Underwriting Group
ManagerTierPhone
BT Alex BrownLead Manager (410) 727-1700
Hambrecht & Quist IncorporatedCo-manager (415) 439-3626
Lehman Brothers IncorporatedCo-manager (212) 526-8100
Salomon Smith BarneyCo-manager (212) 723-7300

Offering Information
NASNTL:TERN Manufacturing: SIC 3661
Type of Shares:Common Shares Filing Date:6/16/98
U.S. Shares:3,000,000 Offer Date:8/17/98
Non-U.S. Shares:0 Filing Range:$13.00 - $15.00
Primary Shares:3,000,000 Offer Price:$13.00
Secondary Shares:0 Gross Spread:$0.91
Offering Amount: $42,000,000 Selling:$0.52
Expenses:$1,400,000 Reallowance:$0.10
Post-IPO Shares:16,200,000
Employees:104

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Cooley Godward Castro Huddleson & Tatum
Bank's Law Firm: Wilson, Sonsini, Goodrich & Rosati
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
3 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
12/31/97 3/31/98 3/31/97 3/31/98
Revenue:$2.12$2.44$0.00Assets:$8.23
Net Income:-$22.55-$5.70-$3.66Curr Assets:$4.62
EPS:-$2.07-$0.48Liabilities:$15.05
Prior EPS:Curr Liab:$13.39
Cash Flow/Oper:-$18.83-$2.79-$3.08Equity:-$6.82
Cash Flow/Fin:$10.56$1.17-$0.26Cash:$0.11
Cash Flow/Inv:$1.48$0.16-$4.09Working Cap:-$8.77

Use of Proceeds
The proceeds from the proposed offering will be used for working capital and other general corporate purposes.

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