Thursday January 16 4:25 PM EDT
C-Cube Reports Record Fourth Quarter and 1996 Results
Revenue And Net Income at Record Highs
MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 16, 1997--C-Cube Microsystems Inc. (NASDAQ:CUBE) today announced record financial results for the fourth quarter and year ended Dec. 31, 1996.
Revenues in the fourth quarter were $95.5 million, up 89 percent from the $50.6 million reported in the fourth quarter of 1995 and up 15 percent from the $83.2 million reported in the third quarter of 1996. Revenues for 1996 were $319.8 million, up 157 percent from the $124.6 million reported in 1995.
Net income for the fourth quarter was $17.3 million, or $0.45 per share on 38.6 million shares up 13%, compared with $15.3 million from ongoing operations, or $0.41 per share on 39.6 million shares, in the third quarter of 1996. The acquisition of DiviCom Inc. resulted in a net loss of $118 million for the third quarter of 1996. 1996 net income was $60.0 million from ongoing operations, or $1.62 per share on 37.0 million shares up 109% compared with 1995 net income of $28.7 million from ongoing operations, or $0.83 per share. The company reported a net loss for 1996 of $73.0 million, or $2.15 per share,
and net income for 1995 of $24.9 million, or $0.72 per share.
Gross margin in the fourth quarter was 56%. The company's balance sheet also showed improvement compared to the third quarter in liquidity measures and working capital management.
The fourth quarter concludes a record year for C-Cube, marking the sixteenth consecutive quarter of increases in revenues and net income from ongoing operations.
"C-Cube is continuing to grow its leadership position in the digital video market, as demonstrated by a number of strategic initiatives in 1996," said Alex Balkanski, president and chief executive officer of C-Cube Microsystems. "The acquisition of DiviCom substantiates our belief that satellite television and video delivery to the home represent the highest growth areas for C-Cube. The communications market offers strategic significance for us long-term, and to further establish our position in this market we recently introduced a set-top decoder chipset and next generation encoder for the broadcast and content-delivery market. Our results were also favorably affected by the performance of our VideoCD operations, where we maintain a
significant market share and expect continued solid contributions in 1997."
C-Cube is the leading provider of digital video semiconductor solutions, which implement international standards for digital
video, including MPEG 1 and MPEG 2. C-Cube's Emmy award-winning encoder chips form the heart of digital video networks worldwide. DiviCom Inc. is a wholly owned subsidiary of C-Cube Microsystems and is a leading developer of digital video networking systems for broadcast communications applications.
C-Cube is headquartered in Milpitas, Calif., and has offices in North America, Europe and Asia. The company employs 669 people worldwide. Its stock is traded on the NASDAQ National Market Systems under the symbol CUBE. C-Cube can be reached at 408/944-6300 or on the World Wide Web at c-cube.com . DiviCom is on the World Wide Web at divi.com . |
