Query, re: VCD v. DVD...........
John, with DVD moving beyond the initial trial phase in the U.S. and more into the mainstream with more movie titles as well as the late-to-the-party software developers starting to jump on the bandwagon, what effect will this movement have on the Chinese?
It would seem to me that the Chinese will be eager to join the party inasmuch as the benefits of DVD cf. VCD seem pretty clear. If so, CUBE, appears ready and willing to help them make the transition. Is there any evidence that such a movement is afoot in China?
For those of you, like myself, who are riding the C-Squared DVD movement, i.e., CUBE-CREAF, Creative reports their fiscal 3rdQ'98 after the bell on Tuesday. I am not sure what to expect from Creative regarding DVD because CUBE did not post big numbers for DVD. On the other hand, Creative has been mired in the Southeast Asian crisis with their revenues off some 26% in that area during the 2Q, and their CEO explained that the company was looking for a nearly 30% drop in revenues for 3Q. It will be interesting to see how Asia fared this past Q as well as what guidance they give now for 4Q. With the exception of MOT, most of the big techs have said that Asia has, at a minimum, already hit bottom, and, in some cases, they look for growth in calendar year'98. |
