Read em & weep !
C-Cube Reports Revenues and Profitsfor First Quarter of 1998
April 16, 1998 04:11 PM
MILPITAS, Calif.--(BUSINESS WIRE)--April 16, 1998--C-Cube Microsystems Inc. CUBE , the leading
provider of digital video technology, today announced financial results for its first quarter, which ended
March 31, 1998. Revenues for the first quarter were $87.3 million, compared with $90.1 million in the
fourth quarter of 1997 and $94.1 million reported in the first quarter of 1997. Net income for the first
quarter was $10.2 million, or $0.27 diluted earnings per share. This compares with diluted earnings per
share of $0.30 in the fourth quarter of 1997 and $0.40 diluted earnings per share in the first quarter of
1997. "C-Cube performed well this quarter, as we aggressively pushed forward our digital video agenda
across several fronts," said Alexandre Balkanski, president and CEO of C-Cube Microsystems. "Of
particular note were C-Cube production shipments of the world's first single-chip codec and DiviCom's
progress in standard as well as high definition digital television." Several noteworthy C-Cube
announcements during or shortly after the quarter include:
-- DiviCom set a new performance standard in MPEG-2 encoding with
the introduction of the MediaView(tm) MV40 program encoder. The
MV40 delivers increased channel count and improved video quality
by optimizing transmission bandwidth for broadcasters, satellite
operators, cable providers, wireless cable operators and
telecommunications services providers.
-- DiviCom and Victor Company of Japan, Limited (JVC) announced a
collaborative agreement to jointly develop HDTV systems,
utilizing JVC's experience in digital recording to provide the
microcode and leveraging DiviCom's skill in building video
compression systems.
-- DiviCom penetrated the U.S. broadcast market by installing an
MV40 for digital broadcasting for KOMO TV in Seattle. DiviCom
conducted a live DTV broadcast demonstration with Sinclair
Broadcast Group (NASDAQ:SBGI) and Comark Digital Services.
Additionally, DiviCom announced a co-marketing relationship with
Columbine JDS (NYSE:BGF) to offer a fully integrated management
and control system for multichannel digital broadcasting targeted
at U.S. broadcasters called TransMission Manager.
-- DiviCom and Adaptec, Inc. (NASDAQ:ADPT), a leading manufacturer
of system bandwidth solutions, announced a strategic relationship
to offer satellite-based data broadcasting services, utilizing
DiviCom's headends and Adaptec's Satellite Express PC receiver
card.
-- C-Cube introduced DVxpress(tm), the industry's first single-chip
MPEG-2 encoder/decoder (codec) for nonlinear editing (NLE)
applications. DVxpress offers C-Cube's Frame-Accurate MPEG
Editing (FAME(tm)) and has been endorsed by the industry's leading
NLE vendors including Pinnacle Systems (NASDAQ:PCLE) and FAST
Multimedia.
-- C-Cube DVD-PC was endorsed by Intel (NASDAQ:INTC) and
acknowledged by Microsoft (NASDAQ:MSFT), which builds upon
previous relationships with Toshiba for laptops, and Diamond and
Dell for desktops.
-- C-Cube announced DVD player design wins with LG Electronics,
Marantz Japan, Inc. and Tatung.
About Divicom Inc.
A wholly owned subsidiary of C-Cube Microsystems, DiviCom
develops and integrates products that make digital video networking
possible. Products include audio/video encoding, data injection
solutions, network management systems, and consulting and integration
services. Based on the MPEG-2, DVB and ATSC international standards,
DiviCom's products enable digital video broadcasting over a variety of
networks including satellite, wireless, fiber and cable. DiviCom can
be reached by phone at 408/944-6700, by fax at 408/944-6705, or via
the World Wide Web at divi.com.
About C-Cube Microsystems Inc.
C-Cube Microsystems Inc. is the industry leader in the
development and delivery of highly integrated digital video silicon
solutions that address the consumer electronics, communications and
convergence markets. C-Cube is headquartered in Milpitas, with offices
in North America, Europe and Asia. Its stock is traded on the Nasdaq
National Market under the symbol CUBE. C-Cube can be reached at
408/490-8000, by fax at 408/490-8132, or on the World Wide Web at
c-cube.com.
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C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, December 31,
1998 1997
ASSETS
Current assets:
Cash and equivalents $ 188,800 $ 145,034
Short-term investments 9,150 21,316
Receivables -- net 28,806 40,606
Inventories 23,290 15,270
Deferred taxes and other
current assets 27,439 26,162
--------- ---------
Total current assets 277,485 248,388
Property and equipment -- net 24,632 23,561
Production capacity rights 16,800 18,200
Distribution rights -- net 1,606 1,648
Purchased technology -- net 8,536 9,408
Other assets 2,801 2,903
--------- ---------
Total $ 331,860 $ 304,108
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,663 $ 9,221
Accrued liabilities 35,384 30,168
Current portion of long-term
obligations 240 608
--------- ---------
Total current liabilities 55,287 39,997
Long-term obligations 87,008 88,331
--------- ---------
Total liabilities 142,295 128,328
--------- ---------
Minority interest in subsidiary 224 365
Stockholders' equity:
Common stock 207,420 203,728
Accumulated translation adjustments (1,916) (1,969)
Unrealized loss on investments -- (17)
Accumulated deficit (16,163) (26,327)
--------- ---------
Total stockholders' equity 189,341 175,415
--------- ---------
Total $ 331,860 $ 304,108
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C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended March 31,
1998 1997
Net revenues 87,317 94,132
Costs and expenses:
Cost of revenues 41,014 40,975
Research and development 17,671 15,612
Selling, general and
administrative 14,586 13,070
-------- --------
Total 73,271 69,657
-------- --------
Income from operations 14,046 24,475
Other income (expense), net 274 (1,067)
-------- --------
Income before income taxes
and minority interest 14,320 23,408
Income tax expense 4,296 7,958
-------- --------
Income before minority
interest 10,024 15,450
Minority interest in net
income (loss) of subsidiary (140) 55
-------- --------
Net income $ 10,164 $ 15,395
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Diluted net income per share $ 0.27 $ 0.40
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Shares used in computation 41,137 41,209
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