John and BS, the subsidiary is not, repeat, not DIVICOM!!!
Rather, C-Cube Japan Inc. of which C-Cube Microsystems owns 65% and Kubota Corporation owns 35%. CCJI markets Cube products within Japan only, to Japanese OEM's. They have commission revenue offset by selling and marketing expenses, resulting in either a profit or a loss. Since it is majority owned and controlled, the full results are consolidated in C-Cube's results, from which the minority owner's share must be deducted. For 3Q99, the Japanese sub presumably made an after tax profit of $423,000 of which 35% or $148,000 really belongs to Kubota's shareholders and therefore must be deducted from the financial results attributable to C-Cube's shareholders. Conversely, if the sub has a loss as in the 9 month numbers, the 35% share of the loss is added back, since C-Cube's partner shares in the pain. Hope this clarifies the situation. |
