C-Cube Sets Quarterly, Annual Revenue Records; Semiconductor Division Expanding in Three Growth Markets
BusinessWire, Jan 20, 2000 16:18 hrs
MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 20, 2000-- C-Cube Microsystems (NASDAQ:CUBE) today announced record revenues for the fourth quarter and for fiscal 1999. Revenues for the quarter totaled $115.7 million compared with $95.8 million for Q4 98 and $101.4 million for Q3 99. Total revenues for 1999 reached $407.6 million compared with $351.8 million for 1998.
Net income for the fourth quarter was $18.6 million, or $0.40 per diluted share, 50% higher than the Q4 98 net income of $12.4 million, and a 33% increase over Q3 99.
"Our fourth-quarter financial performance highlights an excellent year for C-Cube," said the company's Chief Executive Officer Alexandre Balkanski.
During the quarter, C-Cube entered into a definitive agreement to combine its wholly-owned DiviCom subsidiary with Harmonic (NASDAQ:HLIT), and to spin off or sell its semiconductor business in a taxable transaction prior to the close. The transaction is currently expected to close in March, 2000.
During the quarter, DiviCom joined partners MediaOne, Canal+ and Philips to launch the nation's first open digital cable-television architecture in Jacksonville, Florida.
"The succession of major MSO's that have adopted DiviCom technology validate an accelerating trend toward a new, more open and competitive cable equipment market," said Tom Lookabaugh, President of DiviCom. "We are confident we can win in an open-cable equipment market because we have the technology, partners and expertise to target each customer's specific competitive situation."
"C-Cube Microsystem's semiconductor division finished 1999 with excellent growth in our three key markets: DVD, CODEC (encoders/decoders) and digital set-top box," Padval said. "In the CODEC market, we have developed the only consumer-priced single-chip solution for a family of recordable digital video products including digital VHS, DVD-Recordable and personal video recorders. We established momentum in the growing digital satellite and cable set-top business this year with our important partners in the U.S., Europe and Japan.(a) C-Cube also delivered nearly 4 million DVD chips in 1999, more than doubling its 1998 DVD revenue and strengthening its position as an industry leader."(a) *T Other fourth-quarter business achievements include: -- Cablevision selects DiviCom to provide digital television
head-end equipment to its largest market, the New York
metropolitan area. -- DiviCom teams up with 21 other members of the OpenCAS consortium
to submit for standards-body approval a new set of open cable
standards that will enhance services, increase competition and
give greater choice to U.S. cable television consumers. -- DiviCom wins a head-end deployment for the first digital MMDS
television system in China. -- Cisco Systems selects C-Cube's new single-chip DVxpert(TM) 5120
broadcast CODEC for its Video-Over-IP Networking product, the
IP/TV 3400 Broadcast Server. The CODEC provides MPEG-1 and MPEG-2
video encoding for streaming video over the Internet. -- C-Cube and four industry leading hardware and software companies
team up at COMDEX '99 to demonstrate the first generation of
PC/TV, TV timeshifting and video editing products based on
C-Cube's DVxplore(TM) MPEG-2 CODEC silicon. *T About C-Cube
C-Cube Microsystems Inc. is the industry leader in the development and delivery of highly integrated digital video silicon and systems solutions. C-Cube's Semiconductor Division delivers digital video silicon and systems solutions for the communications and consumer electronics markets. C-Cube's DiviCom Division is a leader in the deployment of digital video networks. C-Cube is headquartered in Milpitas, California with offices in North America, Europe, and Asia. Its stock is traded on the Nasdaq under the symbol CUBE. C-Cube can be reached at +1.408.490.8000 or at c-cube.com. C-Cube's DiviCom Division is based in Milpitas, Calif. and can be reached at +1.408.944.6700 or at divi.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth in the Company's Forms 10-K and 10-Q reports and in C-Cube Semiconductor Inc.'s Registration Statement on Form 10. The Company has attempted to identify forward-looking statements in this press release by placing an asterisk(a) following each sentence containing such statements. *T
C-CUBE MICROSYSTEMS INC.
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