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Terayon Digs Density

Alan Breznick
3/27/2007

Despite a gloomy business outlook for the first few months of the year, Terayon Communication Systems Inc. is counting on density to see it through.

Terayon, which is projecting sharply lower than expected revenues for the first quarter, has high hopes for a new MPEG-4 high-density video processing platform that it's developing. (See Terayon Sees Winter Slump .) The new product, which is the next-gen successor to the firm's popular CherryPicker DM 6400 digital video processing system, will start out by carrying out rate-shaping of video programming in the advanced MPEG-4 format.

Speaking on the company's earnings call late last week, Terayon CEO Jerry Chase said he's aiming to start beta testing of the new processing system with an undisclosed service provider in "the next couple of weeks." He told analysts and investors that the tests on the new box could run 30 to 60 days before the product goes live.

"We would expect feedback primarily on the software and features," he said. "We'll probably uncover some bugs, although we've really improved our software testing."

While they're excited about the new MPEG-4 statistical multiplexing equipment, Terayon officials are particularly excited about the new software features that they're developing for it. Claiming to be "platform-agnostic," Chase said the new applications will run on both the new box and the existing CherryPicker system.

"Even the biggest MSOs in the country are not tapping out the density capabilities of the DM 6400," he said. "So we're focusing on applications first. We're really trying to take the emphasis off the platform and focus on the applications."

— Alan Breznick, Site Editor, Cable Digital News

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