timber!!!!!!
ILPITAS, Calif.--(BUSINESS WIRE)--May 20, 1997--C-Cube Microsystems Inc. (NASDAQ:CUBE) today announced that it will report lower than anticipated earnings for the quarter ending June 30, 1997. The company expects revenues in the range of $70 million to $75 million and earnings per share between $0.20 and $0.25 for the quarter. C-Cube reported revenues and earnings of $94 million and $0.41, respectively, for its first quarter ended March 31, 1997.
The company stated that most of this expected shortfall in revenue and earnings will result from reduced sales of its MPEG1 decoders used in VideoCD players sold primarily in China. These reduced sales are primarily due to lower demand reflecting a seasonal slowdown in the market and to continued price declines in response to competitive pressures. In addition, the company's shipments of a relatively new cost-reduced version of its decoder used in VideoCD players have been constrained by design-in issues experienced primarily by certain customers who have simultaneously cost-reduced their systems.
About C-Cube Microsystems
C-Cube Microsystems Inc. is the industry leader in the development and delivery of highly integrated digital video silicon solutions that address the consumer electronics, communications and convergence markets. C-Cube is headquartered in Milpitas, with offices in North America, Europe, and Asia. Its stock is traded on the NASDAQ National Market System under the symbol CUBE. C-Cube can be reached at 408/944-6300 or on the World Wide Web at c-cube.com .
CONTACT:
C-Cube Microsystems
John Hagedorn, 408/944-6300
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
ARNINGS
BW1030 MAY 20,1997
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