My summary of the Conference call... the stuff not in the press release
Divicom's future
Dominance in point-to-multi-point networks
Interactive tv market
Semiconductors
Revs: DVD, SetTop, Codec... less VCD dependence
US, Europe, Japan, Korea R growth areas
DVD: +30% from Q1
1MM units for Q2
Set Tops: Nokia & Phillips in Germany
Pace in UK (90% of set tops in UK)
Codec: Grew 30%ish in the quarter
Best Q2 ever
Next year, no revenue seasonality
US, Japan, Korea revs up nicely
DVD: 1MM units Q2… will continue to accelerate
Will become a “global high growth market for C-Cube”
Set Tops: Market leader in Europe
Communications: 2/3 of total revenues
No longer 1 product company.
Q&A:
DVD: mostly in Japan & Korea
Consumer DVD… 30% growth in 2nd half at least
Reason for loss of revenue seasonality:
“3 legged stool”… Divi, Set Tops, DVD… less VCD
Revs Breakdown: 40% Satelllite, 15% Broadcast, 30% Cable (2/3 Europe, 1/3 US), 20% telcos
DVD OEMs: Samsung, JCV, Hitachi/Acer, LG Elect
Dell
DVD is 70% consumer, which is the growth area
Cube has 30% DVD market share.
DVD market… from 2MM in 1998 to 7MM in 1999
Divx decline will cause sales to accelerate
DVD-R market is a couple of years out.
Next 2 Quarters:
Divi: Q3 similar to Q2 (historically)
Semis: Q3 and Q2 are the seasonally low quarters
Overall: Incremental growth in Q3, accelerated growth in Q4.
My guess… Q3 104.5MM revs
Q4 115-125 MM revs
Gross margins should remain in mid 50s in the foreseeable future.
China market exposure: 15%ish in Q2
What's interesting, though, is that if you figure Q4 revs in the 115 range, with Q over Q growth, it looks like CUBE will easily have 500MM in revs in 2000. Which is nice. |
