8% of VCD sales are outside of China. I posted a table to show why VCD no longer has C-Cube by the bit. I reformated it here. I hope the table works...............
To: Maya (42628 )
From: John Rieman Tuesday, Jul 6 1999 5:32PM ET
Reply # of 42888
Maya, my calculator doesn't go to $.32 this Q. Last year it would have, but the VCD market has changed. Let's take a look at C-Cube's growth:
1996 1997 1998 1999(est)
Total Revenues $320M $337M $352M $418M
VCD Revenue 224M 162M 135M 95M
% of revenue 70% 48% 38% 23%
growth of VCD (27.7%) (16.7%) (29.6%)
All other Revenue 96M 175M 217M 323M
% of revenue 30% 52% 62% 77%
Growth of other 82.3%* 24% 48.8%
*Divicom's 1st full year.
VCD revenues will continue to decline, the solid growth is in the other markets. We have a BIG decline in VCD revenue this Q.
In Q2, VCD will come in at about $17M down nearly $15M from last Q.
Set top boxes only grow about $1M this Q, Q over Q.
Encoders are growing strong this Q, by about $4M or over double from last Q.
DVD grows by $2M this Q. About 1/3 going into players.
Divicom grows by about $6M.
That leaves C-Cube's revenues about $2M less then last Q. It should produce a solid $.29 per share in earnings.
There is potential up-side in all of the markets, they could be doing a little better.
If they come in above $.29 per share, my guess would be that they did it with higher interest income. Short rates rose this Q. Depending on how C-Cube invests, they could drop substantial earnings to the bottom line, just with interest income. Last Q, interest income was $.034 per share.
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