C-Cube Reports Improved Second Quarter Earnings
c-cube.com
Growth in U.S., Japan and Korea Offsets Seasonal Impact
Milpitas, Calif., -- July 15, 1999 -- C-Cube Microsystems Inc. (Nasdaq:CUBE) today reported second
quarter revenues of $94.1 million, compared with $82.5 million for the same period in 1998 and $96.5
million for the first quarter of 1999. Net income for the second quarter reached $11.7 million, or $0.28
diluted earnings per share. This compares with net income of $10.7 million, or $0.28 per share ($0.25
excluding extraordinary gain) a year ago; and $13.0 million, or $0.32 per share in the prior quarter.
"We are very pleased with our second quarter performance, which set a revenue record for this historically
low period," said Alexandre Balkanski, president and CEO of C-Cube. "We successfully offset normal
seasonal downturns in our Asian-based VCD business with strong growth in the DVD marketplace -
particularly in Korea and Japan - and continued growth at our DiviCom® subsidiary."
C-Cube's shipments of DVD chips in Q2 set an industry record - exceeding one million units. The
company leads the world in the delivery of MPEG silicon, according to industry analysts Dataquest and
Cahners In-Stat.
"DiviCom, which is already a leading supplier in Direct to Home satellites, European cable and U.S. telco
markets, clearly established itself as a top-tier player in the U.S. digital cable marketplace. The head-end
encoder win at Time-Warner's New York broadcast center coupled with the MediaOne contract
announced in Q1 builds an impressive base from which we expect continued growth," said Balkanski.
Current business highlights include:
DiviCom becomes the first digital video company to deliver its 5,000th encoder. The
record-breaking unit was installed in a MediaOne digital cable headend system during the second
quarter of this year.
C-Cube semiconductor ships record one million plus MPEG decoder chips in Q2 for the DVD
market.
DiviCom chosen to supply the digital uplink for Mega Media of Taiwan Direct-to-Home (DTH)
satellite system and the digital headend for Télégenève, the cable operator for the city of Geneva,
Switzerland.
C-Cube's AViA™ platform selected by Pace Micro Technology, the UK's leading provider of
digital set-top boxes, to power approximately 90% of the digital cable set-tops in the UK. Pace will
rely on C-Cube's AViA silicon solutions to deliver interactive services such as Internet content and
e-commerce to consumer television.
DiviCom earns three awards for technical excellence at this year's NAB show in Las Vegas,
including the editors' "Pick of Show" award for the MV400 high definition encoder.
C-Cube Silicon selected for next generation HD encoders by DiviCom, General Instrument and
NDS.
About C-Cube Microsystems
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 highly integrated
digital video silicon and systems solutions for the communications and consumer electronics markets,
including digital set-top boxes, VCD and DVD. C-Cube's DiviCom division is a leader in the deployment
of digital video networks. DiviCom's products include audio/video encoding, data broadcast solutions,
network management systems, consulting and integration services. C-Cube is headquartered in Milpitas,
California with offices in North America, Europe and Asia. The company's stock is traded on the Nasdaq
exchange under the symbol CUBE. C-Cube may be reached at +1.408.490.8000 or on the World Wide
Web at c-cube.com. C-Cube's DiviCom division is based in Milpitas, California and may be
reached at +1.408.490.6700 or on the World Wide Web at divi.com.
Hear C-Cube's Earnings Conference Call Live at www.c-cube.com.
C-Cube and the C-Cube logo are registered trademarks of C-Cube Microsystems Inc. DiviCom is a registered
trademark of DiviCom, Inc. All other trademarks and registered trademarks are property of their respective
companies. |
