While we always talk about CUBE and the latest developments I thought we should keep an eye on Divicom. In the networking sector the highest PEs are awarded to the system integrators; i.e. the CSCOs and not the SERAs. Divicom add another dimension to a CUBE investment that others cannot offer. I have reread the S4 @ Edgar with Divicom in mind and here are a few tidbits.
Divicom incorporated in 93 in Del. By being new it has no legacy issues (analog) that many others are saddled with.
Focus: End-to-end solutions for digital video networks. The same concept that the enormously successful networking co.
work under.
Customers in 95
Bell-Atlantic 42%, Echostar 25% Sagem 15%. Hopefully the customer base is expanding rapidly. It also makes it hard to evaluate any customer list as one doesn't know if they are a Divcom or a CUBE customer, or BOTH.
As of June 96 Divcom had 184 employees, 89 engaged in R&D. Who will have a better understanding of the BIG picture and where to spend on R&D then the combined R&D departments of CUBE and Divicom?
Competition in compression and networking
GI,SFA(Q results on SFA just in. Check out the increase in bookings last Q. This substantial increase was enough to get me in for a few shares) If Divicom can keep pace with SFA it will be a MAJOR revenue contributor. Are SFAs bookings growth a good indicator of what Divicom can do? Any thoughts out there on this?,Philips, DMV division of News corp, NUKO, TV/COM subsidiary of Hyundai. The S4 didn't mention LU.
Gross margins: 51.8 % in June 96. Can they move up if volume goes up? Is this a way for CUBE to mmaintain margins over the long haul?
Pres, CFO, CEO in June 96 Nolan Daines. 36. I think he's still there.
Products ( There are more)
- The MediaView-TM- MV20 program encoder for compressing digital video,
audio and data signals
- The MediaNode-TM- MN20 multiplexer for switching and networking
- The MediaView System Controller-TM- SC20 for network and system management
- The MediaNode Platform MP100-TM- for spooling, editing, and decoding
transport streams
- The ProView-TM- commercial integrated receiver decoder for monitoring and
distribution
- The Di2-K settop decoder manufacturing kit intended to enable OEMs to
manufacture high volumes of home settop decoder boxes
see next posting |
