Filing Pursuant to Rule 424(b)(3)
Registration Statement No. 333-48272
PROSPECTUS SUPPLEMENT NO. 2 DATED MAY 10, 2001
TO PROSPECTUS DATED NOVEMBER 7, 2001
TERAYON COMMUNICATION SYSTEMS, INC.
2,969,062 Shares of Common Stock
Please read this prospectus supplement in conjunction with the prospectus dated
November 7, 2001 (the "Prospectus"). The table on page 19 of the Prospectus
setting forth information concerning the selling stockholders is superseded by
the following table:
SELLING STOCKHOLDERS
In our acquisition of Mainsail which we consummated in September 2000, we issued
to all of the selling stockholders shares of our common stock, and we agreed to
register all of those shares for resale. We also agreed to use reasonable
efforts to keep the registration statement effective until September 30, 2001.
Our registration of the shares of common stock does not necessarily mean that
the selling stockholders will sell all or any of the shares.
The following table sets forth certain information regarding the beneficial
ownership of the common stock, as of June 15, 2001, by each of the selling
stockholders.
The information provided in the table below with respect to each selling
stockholder has been obtained from that selling stockholder. Except as otherwise
disclosed below, none of the selling stockholders has, or within the past three
years has had, any position, office or other material relationship with us.
Because the selling stockholders may sell all or some portion of the shares of
common stock beneficially owned by them, we cannot estimate the number of shares
of common stock that will be beneficially owned by the selling stockholders
after this offering. In addition, the selling stockholders may have sold,
transferred or otherwise disposed of, or may sell, transfer or otherwise dispose
of, at any time or from time to time since the date on which they provided the
information regarding the shares of common stock beneficially owned by them, all
or a portion of the shares of common stock beneficially owned by them in
transactions exempt from the registration requirements of the Securities Act of
1933.
Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated
by the Commission under the Securities Exchange Act of 1934. Unless otherwise
noted, each person or group identified possesses sole voting and investment
power with respect to shares, subject to community property laws where
applicable.
None of the share amounts set forth below represents more than 1% of our
outstanding stock as of June 15, 2001, adjusted as required by rules promulgated
by the SEC.
Selling Stockholder Number of Shares Being Offered Held in Escrow
-----------------------------------------------------------------------------------------------------
Boris Zats 490,032 490,032 265,768
John Walsh 144,511 144,511 86,706
Yuri Zats 147,270 147,270 86,981
Alex Lubivy 150,030 150,030 87,257
Lucy Zats 144,511 144,511 86,706
Vlad Cherednichenko 144,511 144,511 86,706
A. Lailan Fell TTEE U/A DTD 08/25/1995 144 144 14
By Alethea Lailan Fell Trust
Andrew Alcon 558 558 56
Antoinette M. Belt 58 58 5
Benedict A. Itri 58 58 5
Billante Living Trust dtd Jan. 17, 2000 13 13 1
c/o Andrea Billante, Trustee
Bobby R. Johnson, Jr. 58 58 5
Brody Family Trust U/D/T 8/15/86; 288 288 29
William R. Brody, Trustee
C. Preston Butcher and Carolyn F. 288 288 29
Butcher, Trustees of the CPB/CFB
Revocable Trust U/D/T dated February
2, 1998
Chad W. Keck 577 577 57
Charles S. and Nan Y. Strauch Living 57 57 5
Trust dtd 10/26/82; Charles/Nan
Strauch, Trustees
Charles S. and Nan Y. Strauch Living 577 577 57
Trust dtd 10/26/82; Charles/Nan
Strauch, Trustees
Church Pension Fund 43,245 43,245 4,324
Civil Aviation Authority Pension 17,298 17,298 1,729
Scheme; Nortrust Nominees Limited,
Custodian
Computrol Limited, BVI 5,766 5,766 577
Barbara N. Lubash 1,524 1,524 152
John Breese Mumford and Christine Joyce 27,562 27,562 2,756
Mumford Trusts, U/D/T dtd 10/13/83;
John Breese Mumford and Christine
Joyce Mumford, Trustees
John Breese Mumford and Christine Joyce 1,442 1,442 144
Mumford Trusts, U/D/T dtd 10/13/83;
John Breese Mumford and Christine
Joyce Mumford, Trustees
Milder Community Property Trust dtd 33,522 33, 522 3,352
11/7/91; Donald B. and Terri L.
Milder, Trustees
Mumford Special Trust #1 dtd 12/17/87; 1,490 1,490 149
Kenneth A. Eldred, Trustee
Mumford Special Trust #2 dtd 12/17/87; 1,490 1,490 149
Kenneth A. Eldred, Trustee
Mumford Special Trust #3 dtd 12/17/87; 1,490 1,490 149
Kenneth A. Eldred, Trustee
Mumford Special Trust #4 dtd 12/17/87; 1,490 1,490 149
Kenneth A. Eldred, Trustee
Rich Shapero 33,522 33,522 3,352
Robert A. Hoff 33,522 33,522 3,352
Seth Neiman 16,761 16,761 1,676
Dench Living Trust dtd 6/16/94; Robert 577 577 57
H. Dench and Gloria E. Dench, Trustees
Douglas Metz 58 58 5
Gary Rosenbach 288 288 29
George A. Needham 577 577 57
Harvard Private Capital Holdings, Inc. 57,660 57,660 5,766
Heimbuck Family Trust dtd 8/13/85; 577 577 57
Jeffrey Heimbuck, Trustee
Howard S. Flagg 58 58 5
John F. Nicholson 289 289 29
John Selling 144 144 14
Kenneth and Roberta Eldred Revocable 1,442 1,442 144
Trust, U/A dtd 1/28/83; Kenneth and
Roberta Eldred, Trustees
Leeway & Co. 33,484 33,484 3,348
Lorinda Mosca 10 10 1
Louis E. Hallman, III and Sherry L. 288 288 29
Meisman Family Trust, Louis E.
Hallman, III & Sherry L. Meisman,
Co-Trustees U.T.D. 5/29/98
Lydia Anderson 144 144 14
Massachusetts Institute of Technology 40,362 40,362 4,036
Mellon Bank, N.A. as Trustee for the 28,831 28,831 2,883
Bell Atlantic Master Trust
Needham & Company, Inc. 2,885 2,885 286
Northern Trust Company as Trustee for 53,007 53,007 5,301
Lucent Technologies Inc. Master
Pension Trust
Norwest Equity Capital, L.L.C. 11,532 11,532 1,153
Oberlin College 11,532 11,532 1,153
Okoboji Trust dtd 6/19/85; James F. 1,442 1,442 144
Willenborg, Trustee
Price Trust U/T/A dtd 10/5/84, as 577 577 57
amended; Thomas A. Price, Trustee
Raj Rajaratnam 577 577 57
Rector and Visitors of The University 23,064 23,064 2,306
of Virginia
Richard I. Keeler Revocable Trust 288 288 29
Restated dtd 7/19/94, As May Be Amended
Robert C. Hawk 57 57 5
Robert C. Hawk 288 288 29
Robert M. Fell 144 144 14
Roxanne Cooley 26 26 3
SBC Master Pension Trust 57,660 57,660 5,766
Silicon Valley Bancshares 1,441 1,441 144
Stradling, Yocca, Carlson & Rauth 577 577 57
Profit Sharing Plan; CNA Trust
Corporation, Trustee
The William and Flora Hewlett Foundation 57,660 57,660 5,766
University of Chicago 23,064 23,064 2,306
Wallace R. Hawley Family Holdings, Ltd. 1,153 1,153 115
Walton Investment, L.L.C. 11,532 11,532 1,153
Wellcome Trust; Wellcome Trust, Ltd., 43,245 43,245 4,325
Trustee
William P. Cargile 58 58 5
WS Investment Company 96A 288 288 29
Yale University 43,245 43,245 4,325
VLG Investments 7,949 7,949 794
Green Family Trust 1,987 1,987 198
CAN Trust FBO Elias J. Blawie 1,987 1,987 198
Newbury Ventures, L.P. 84,960 84,960 8,476
Newbury Ventures Associates, L.P. 64,423 64,423 6,427
Comm Ventures, L.P. 193,584 193,584 19,361
Newbury Ventures Cayman, L.P. 22,840 22,840 2,284
Worldview Technology Partners I, L.P. 135,992 135,992 13,599
Worldview Technology Int'l I, L.P. 53,003 53,003 5,003
Worldview Strategic Partners I, L.P. 11,713 11,713 1,171
Nokia Corporation 66,903 66,903 6,690
Lucent Venture Partners, Inc. 82,118 82,118 8,746
John F. Hanley 1,763 1,763 0
The Lawrence Trust: DTD 12/18/95;
Maureen Lawrence & Augustus Lawrence III as TTEES 1,175 1,175 0
Litman Family Trust 1998;
Arle Litman as TTEE, DTD 8/98 588 588 0
Hassan Parsa 588 588 0
Neil Vasant 881 881 0
Marc Rappoport 213 213 0
Peter Rokkos 67 67 0
LVP I LLC 67 67
Issie Rabinovitch 27,597 27,597 2,759
Donald Thorne 22,078 22,078 2,207
George Marcus 11,039 11,039 1,103
Robert Rabin & Joan Rabin TTEES
U/A DTD 7/16/82 11,039 11,039 1,103
Ron Snow 11,039 11,039 1,103
Dan Heffernan 11,039 11,039 1,103
Rabinovitch Ventures Limited 27,597 27,597 2,759
Howard Neff 11,039 11,039 1,103
Yuri Sharonin 24,777 24,777 2,477
Vladimir Taft 16,357 16,357 1,635
Robert M. Lefkowitz 18,866 18,866 1,886
Nicolay Makarov 15,003 15,003 1,500
Ardeshir Bordbar 13,698 13,698 1,369
Zinovy Krasnovsky 20,673 20,673 2,067
Kurt Vogel 14,451 14,451 1,445
Roy Wang 1,685 1,685 168
Owen Frances 14,451 14,451 1,445
Edmund Johnson 2,408 2,408 240
Lynette Webber 722 722 72
Vlad Vochegursky 2,890 2,890 289
Boris Zundelevich 3,371 3,371 337
Oleg Kipnis 90 90 9
Ana Raveica 75 75 7
John Trick 481 481 48
* 296,866 shares of our common stock are held in the name of Embassy & Co.
pursuant to an Escrow Agreement with the former stockholders of Mainsail.
578,041 shares of our common stock are held in the name of Embassy & Co.
pursuant to Retention Escrow Agreements with certain former stockholders of
Mainsail.