=C-Cube Microsystems Rises -2: New Product Developments
Dow Jones News Service via Dow Jones
Auerbach Pollak's McCrary also attributed the stock's rise to a better
industry outlook. "C-Cube's DVD (digital video disc) products are coming on
well, and price cutting pressures have been lessened recently," he said.
Tejinder Singh, the Unterberg Harris analyst who raised C-Cube's rating, also
said new product developments at the company could carry the shares even higher,
to $40 a share, in the next 12 months.
"C-Cube happens to be the leader in the video and audio decoding and video
encoding industry," Singh said. "It's the first company to market the hardware."
The analyst said the only other leader in the industry is Zoran Corp. (ZRAN),
which uses software rather than hardware for digital video and audio
applications.
Singh said he was especially enthusiastic about C-Cube's development of the
E-4 chip, a single-chip video encoder and decoder. "Nobody else has similar
ideas on this technology," said Singh.
He said seasonal factors, which brought the company's shares down in the
second quarter, will strengthen the stock in the third quarter and will help the
company toward a strong year-end finish.
C-Cube shares on Thursday were recently trading up 1 3/16, or 4.2%, at 29 3/8
on Nasdaq volume of 2 million shares, compared with average daily volume of 1.4
million.
(END) DOW JONES NEWS 08-21-97 |
