We should invite this Mpegged dude to post here. He's got the conference today!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Subj: BancAmerica Robertson Stephens Technology conference (1)
By: Mpegged
Date: Feb 28 1998 10:09 A.M PST
Reply To: Msg. 1173 by CPAMarty
From BancAmerica Robertson Stephens analyst Elias Moosa 2/25/98...
FY: 1998
Q1: EPS .26 Rev:$88
Q2: EPS .24 Rev:$88
Q3: EPS .26 Rev:$95
Q4: EPS .32 Rev:$105
FY: 1999
Q1: EPS .34 Rev:$108
Q2: EPS .36 Rev:$113
Q3: EPS .36 Rev:$118
Q4: EPS .36 Rev:$123
C-Cube CEO Alex Balkanski (and John Hagerdorn, CFO) presented at the BancAmerica Robertson Stephens Technology conference yesterday. The highlight of the presentation was the increasing focus on C-Cube's fast growing systems subsidiary, Divicom, as a driver for the company's business.
Divicom reportedly exceeded $100 million in revenue during 1997, with gross margin in the 50% range and operation margin in the 20% range. Recently C-Cube announced Divicom's fourth generation encoder product, the MV40, which further brightens the systems business, in our view.
Management also continued to prepare investors for a slow first half of the year, focusing attention on a potentially stronger second half.
The company's Video-CD business (47% of sales in Q4:F97) usually undergoes a seasonally slower period during the first half, after the build for the Chinese New Year in January. As such, we expect the Video-CD business to be flat/down sequentially in Q1 and down sequentially in Q2:F98. We anticipate that this could lead to flat to sequentially down Q1 and Q2 for the whole company, as a result.
Growth is expected to resume in the second half as Video-CD and PC-DVD decoder businesses come back to life. Also, we expect continued solid performance from Divicom and C-Cube's other infrastructure businesses during this period. |
