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Technology Stocks : C-Cube
CUBE 37.77+1.9%3:11 PM EST

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To: Stoctrash who wrote (662)6/5/1996 1:58:00 AM
From: Andy Chen   of 50808
 
Here is my reply to all the c-cube related questions.

i am spending a lot of online time recently, and it has been enjoyable. the primary reason, i am surprised how the media created a boost for cube back in 1995 and how they are now telling the public to sell it. media misled the public by understating cube's competitive environment in 1995 and now as cube makes good progress they are telling you to sell because there IS competition out there in the digital video market.

IBM, AT&T, LSI, and VLSI had been in the digital video market for years (the latest being AT&T who introduced their MPEG codec/decodec technology in 1995).

IBM -- MPEG encoder/decoder family. they have the chipsets, but they
currently don't have the vlsi solution to incorporate other
mpeg related chips into one MPEG-chips, which includes 4 chips (cd-rom, mpeg-1 system, mpeg-1 video and mpeg-1 audio)
similar limitation applies to their mpeg-2 DBS chipset. the
failure to overcome this limitation is due to the fact that
IBM is only interested in the PC-MPEG and broadcast MPEG market, NOT VCD market.

AT&T -- maker of mpeg-2 DBS chips. recently formed development pacts
with LSI. AT&T's encoding modular formula, however, is still
behind cube's encoding technology. and LSI/AT&T teamed up with
Paradyne only developes digital broadcast solution for
their own system.
(reminder: digital video systems are highly client-oriented. different clients have different chip adaptor needs. it is up to the DVS designer to create suitable solution to fit these requirements effectively. therefore, each system is different for each client. DiviCom/C-Cube currently has the largest client base. almost a monopoly.)
(Digital video chip in the consumer market is viable to the same difficulty. almost all electronics have different product specs and chip adaptor standards. c-cube microsystem had been working closely with these clients to develop solutions that best fit each product's needs. whereas, other MPEG chip makers only make the "vanilla" MPEGs that are only suitable for specified electronic applications. THIS is why cube is able to maintain their market share in the highly competitive MPEG decoder market.)

LSI-- makes so-called "vanilla" mpegs. they recently teamed up with
to utilize at&T's broadcast expertise. however, this team is far
behind c-cube/divicom team.

vlsi-- makes mpeg digital video multiplexers (this is almost like a commodity market).

sony is working c-cube microsystem to develop client/product specific solutions, especially for DVD, and their DVD player. DVD decoder chips will be produced by a lot of manufacturers. however, cube is the only company who has the ability to work with each client closely and provide them with first-hand expertise in this industry.

ADSL -- digital video chips are primarily used in video-on-demand products.
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