C-Cube to miss forecasts, analysts say
By Bloomberg News
December 15, 2000, 10:20 a.m. PT
Shares of C-Cube Microsystems, which makes equipment for TV set-top boxes, fell as much as 31 percent Friday after two analysts said first-quarter earnings will be less than expected.
C-Cube shares were down $5.06 to $12.31 in early afternoon trading after touching $12 earlier in the day.
According to a note to clients from Deutsche Bank Alex Brown analyst Erika Klauer, the company said on a conference call late Thursday that it will earn 7 cents per share on $61 million in sales for the quarter.
That's compared with the 13 cents per share that Klauer had expected and 19 percent lower than her revenue forecast of $75 million.
Arun Veerappan, a Robertson Stephens analyst, wrote that a slowing U.S. economy is hurting sales of C-Cube's gear, which sends video and information from the Internet to set-top boxes that connect TV sets to digital broadcasts.
Representatives from Milpitas, Calif.-based C-Cube didn't return phone calls seeking comment. Klauer, who cut her rating on the company's shares to "buy" from "strong buy," also wasn't available to comment.
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