C-Cube unveils recording, playback video chip
biz.yahoo.com
MILPITAS, Calif., Aug. 25 (Reuter) - C-Cube Microsystems Inc. (CUBE) on Monday unveiled a computer chip that it says is the first that can both record and play back video in digital format.
The Milpitas, Calif., maker of specialty computer chips said a single one of its DVx chips can replace up to three chips currently used to record and play back video in the MPEG-2 digital format. Many electronic devices, such as satellite TV, digital cable settop boxes and digital video disc (DVD) players, use MPEG-2.
A single, low-cost chip is the first step to making cheap video cameras and video disk players that can play back and record in digital format.
Video stored in a digital format, instead of analog tape, can be easily edited or transmitted through various media, including the Internet.
Satellite TV equipment maker Scientific-Atlanta Inc. (SFA) and consumer electronics giant Victor Company of Japan Ltd. (JVC) (6782.T) are testing C-Cube's chips for possible products, C-Cube said.
``This will create brand new markets in consumer electronics,'' said Alex Balkanski, C-Cube chief executive. The first products, aimed at professional video-editing and broadcasting markets, could appear in early 1998, he said.
Analysts said several companies are developing these types of chips, including International Business Machines Corp. (IBM), LSI Logic Corp. (LSI) and Intel Corp. (INTC) But C-Cube is the first company to enter the production stage, giving it an early lead that could last for many months.
``C-Cube is the only company who has shown me working silicon,'' said Dale Ford, senior industry analyst at market researcher Dataquest. ``What's exciting to me is the potential this holds in two or three years.''
C-Cube's stock rose 50 cents to close at $29 on Nasdaq. In the past two weeks, C-Cube has gained $5, or 20 percent, partly in anticipation of the DVx chip.
``This is a revolution by C-Cube,'' said Tejinder Singh, vice president at investment bank Unterberg Harris in New York. ``I won't be surprised if this ends up being a big contributor to revenue by late 1998.''
Singh last week rated C-Cube's stock as a strong buy. |
