Terayon Communications

(TERN)

beat Wall Street's fourth-quarter earnings expectations, posting a pro forma loss of $8.1 million, or 12 cents a share. According to Thomson Financial/First Call, analysts had been expecting a loss of 25 cents a share.

Using generally accepted accounting principles, the maker of cable modems lost $6.2 million, or 9 cents a share, compared with a loss of $91.6 million, or $1.38 a share, in the year-ago period.

TheStreet Recommends

Revenue rose to $80.2 million from $62.9 million in the year-ago period.

For the first quarter, the company expects lowered revenue due to a component shortage. The company sees a pro forma loss of $10 million to $12 million, or 14 cents to 17 cents a share, on revenue of $64 million to $66 million.

Shares of Terayon were recently trading up 14.2% to $7.90 in Instinet premarket action after closing at $6.92 Monday.