DIVX or DVD????
Neither C-cube or Zoran share price is moving, I think we need real good
news to move the price up. Zoran has been trading in $13-$19 for the past
few months. There are a lot 2nd generation DVD players in the market right
now including Toshiba, Pioneer, JVC, Samsung and etc...But I have not noticed
any DVD player from Sharp??
If Levy Gerzberg said 65 to 75 cents EPS for 1998 is not out of reach, It
think ZRAN should be trading in the mid 20, something is wrong here???
SANTA CLARA, Calif. (CBS.MW) -- Broad market acceptance of
digital video this summer, after a year-and-a-half delay, will help chip
maker Zoran (ZRAN) nearly double earnings this year, the company's
chief executive said Thursday.
Levy Gerzberg, head of the Santa Clara, Calif.-based company, said he
expected revenue from Zoran's digital video disk (DVD) operation to
account for more thanÿ 40 percent of the company's total sales. That
compares to 10 percent last year and 30 percent in 1996.
"The DVD market is really starting to move," Gerzberg told CBS
MarketWatch. Sales of the products for the digital video market --
including DVD drives, cameras, home theater set-ups and other items --
is expected to grow to 103 million unit in 2001 from 25 million in 1998.
He backed analysts' projections of earnings of 6 cents per share for the
current quarter, adding the range for 1998 of 65 to 75 cents in earnings
per share is "not out of reach." The company earned 38 cents per share in
1997.
ÿ
Originally expected to make a splashy debut in late 1996, DVD has been
slowed by a number of legal fights and consumer confusion. DVDs are
widely expected to replace CDs in the coming years as they can store up
to 28 times more information than CDs.
Wrestling cube
The huge potential of the DVD market has also attracted C-Cube
(CUBE), which trades at a lower multiple than Zoran. The market values
C-Cube at 18 times earnings and 2.37 times sales during the last four
quarters, compared to Zoran's ratio of 45 times earnings and 4.29 times
sales.
Zoran shares on Thursday closed off 15/16 at 14 15/16 while C-Cube fell
1 1/16 to 19 1/16.
Levy said Zoran offers both chip and software solutions for the digital
video market, while C-Cube uses only a chip solution.
"The combination gives us a lot of flexibility," Levy said. He estimated
chips generate about two-thirds of Zoran's total revenue with the
remaining sales coming from software..... |
