CUBE offers FY01 outlook
--3:45 pm - By Michael Baron
C-Cube Microsystems (CUBE: news, msgs) is falling $5.38, or 30.9 percent, to $12, in late action. Stephen Howitz, manager of investor relations for the Milpitas, Calif., provider of digital media processing products, gave CBS MarketWatch the details of C-Cube's financial outlook for fiscal 2001 this afternoon while noting that the company is comfortable with Wall Street expectations for its fourth-quarter earnings. A First Call survey of seven analysts puts C-Cube's profit for the period at 15 cents a share. For fiscal 2001, Howitz said C-Cube is maintaining its target of earnings of 65 cents a share on revenue of $321 million for fiscal 2001. Howitz said the selling in the stock Friday may be related to the fact that company expects first-quarter revenue to total $65 million, which was lower than some analysts apparently anticipated. He said the company expects to meet its year-end revenue target with 20 percent year-over-year growth in the second quarter and 30 percent year-over-year growth in both the third and fourth quarters. "We're basing our confidence in this target on new product introductions, communication with our customers and plans for further platform expansion," said Howitz. "In addition, we're looking to increase our leading share of the DVD market to 35 percent in 2001 from 30 percent at present." Howitz also noted C-Cube is the only company with design wins for recordable DVD technology.
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