C-Cube Reports Record Fourth Quarter and 1996 Results; Revenue And Net
Income at Record Highs
BusinessWire, Thursday, January 16, 1997 at 16:27
MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 16, 1997--C-Cube
Microsystems Inc. (NASDAQ:CUBE) today announced record financial
results for the fourth quarter and year ended Dec. 31, 1996.
Revenues in the fourth quarter were $95.5 million, up 89 percent
from the $50.6 million reported in the fourth quarter of 1995 and up
15 percent from the $83.2 million reported in the third quarter of
1996. Revenues for 1996 were $319.8 million, up 157 percent from the
$124.6 million reported in 1995.
Net income for the fourth quarter was $17.3 million, or $0.45 per
share on 38.6 million shares up 13%, compared with $15.3 million from
ongoing operations, or $0.41 per share on 39.6 million shares, in the
third quarter of 1996. The acquisition of DiviCom Inc. resulted in
a net loss of $118 million for the third quarter of 1996. 1996 net
income was $60.0 million from ongoing operations, or $1.62 per share
on 37.0 million shares up 109% compared with 1995 net income of $28.7
million from ongoing operations, or $0.83 per share. The company
reported a net loss for 1996 of $73.0 million, or $2.15 per share,
and net income for 1995 of $24.9 million, or $0.72 per share.
Gross margin in the fourth quarter was 56%. The company's
balance sheet also showed improvement compared to the third quarter
in liquidity measures and working capital management.
The fourth quarter concludes a record year for C-Cube, marking
the sixteenth consecutive quarter of increases in revenues and net
income from ongoing operations.
"C-Cube is continuing to grow its leadership position in the
digital video market, as demonstrated by a number of strategic
initiatives in 1996," said Alex Balkanski, president and chief
executive officer of C-Cube Microsystems. "The acquisition of
DiviCom substantiates our belief that satellite television and video
delivery to the home represent the highest growth areas for C-Cube.
The communications market offers strategic significance for us
long-term, and to further establish our position in this market we
recently introduced a set-top decoder chipset and next generation
encoder for the broadcast and content-delivery market. Our results
were also favorably affected by the performance of our VideoCD
operations, where we maintain a significant market share and expect
continued solid contributions in 1997."
C-Cube is the leading provider of digital video semiconductor
solutions, which implement international standards for digital video,
including MPEG 1 and MPEG 2. C-Cube's Emmy award-winning encoder
chips form the heart of digital video networks worldwide. DiviCom
Inc. is a wholly owned subsidiary of C-Cube Microsystems and is a
leading developer of digital video networking systems for broadcast
communications applications.
C-Cube is headquartered in Milpitas, Calif., and has offices in
North America, Europe and Asia. The company employs 669 people
worldwide. Its stock is traded on the NASDAQ National Market Systems
under the symbol CUBE. C-Cube can be reached at 408/944-6300 or
on the World Wide Web at c-cube.com . DiviCom is on the
World Wide Web at divi.com .
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Actual results could differ
substantially from those projected in the forward looking statements
as a result of certain risk factors, including changes in demand for
digital video products, development and deployment of appropriate
infrastructure, and price pressures from new or existing competitors.
Note to editors: Two financial tables follow.
The C-Cube logo is a registered trademark of C-Cube Microsystems
Inc.
C-Cube is a trademark of C-Cube Microsystems Inc.
All other trademarks are the property of their respective
holders.
*T
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value amounts)
Dec. 31, Dec. 31,
1996 1995
ASSETS
Current assets:
Cash and equivalents $76,241 $133,414
Short-term investments 6,005 10,675
Receivables 40,706 24,421
Inventories 28,056 11,871
Deferred taxes and other current
assets 41,669 5,882
Total current assets 192,677 186,263
Property and equipment -- net 22,653 7,222
Production capacity rights 46,200 --
Distribution rights -- net 1,812 1,977
Purchased technology -- net 12,895 3,095
Other assets 3,278 4,969
Total $279,515 $203,526
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $24,500 $1,934
Accounts payable 18,320 10,704
Accrued liabilities 24,533 13,889
Current portion of long-term
obligations 837 1,159
Total current liabilities 68,190 27,686
Long-term obligations 92,140 88,010
Total liabilities 160,330 115,696
Minority interest in subsidiary 613 295
Stockholders' equity:
Common stock 191,044 87,124
Deferred stock compensation (250) (635)
Notes receivable from stockholders (305) (459)
Accumulated translation adjustments (1,238) (860)
Unrealized loss on investments (13) (14)
Retained earnings (deficit) (70,666) 2,379
Total stockholders' equity 118,572 87,535
Total $279,515 $203,526
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Quarter Ended Dec. 31, Year Ended Dec. 31,
1996 1995 1996 1995
(Unaudited) (Unaudited)
Net revenues:
Product $95,520 $50,353 $319,558 $123,190
Development contracts -- 200 200 1,412
Total 95,520 50,553 319,758 124,602
Costs and expenses:
Cost of product
revenues 42,017 24,025 144,985 59,253
Research and development 15,327 4,991 44,177 14,342
Selling, general and
administrative 12,123 6,056 39,002 19,227
Purchased in-process
technology -- 3,800 131,349 3,800
Total 69,467 38,872 359,513 96,622
Income (loss) from
operations 26,053 11,681 (39,755) 27,980
Other income (expense), net (314) 431 (346) 1,848
Income (loss) before
income taxes 25,739 12,112 (40,101) 29,828
Income tax expense 8,454 2,974 32,944 4,933
Net income (loss) $17,285 $9,138 $(73,045) $24,895
Net income (loss) per share $0.45 $0.26 $(2.15) $0.72
Shares used in computation 38,648 35,825 33,928 34,651
*T
CONTACT: C-Cube Microsystems
Jim Burke, 408/944-6300
Mary Sharpless-Giani, 408/944-8628 (Media Contact)
mary.giani@c-cube.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
EARNINGS
Companies or Securities discussed in this article:
Symbol
Name
C-Cube Microsystems:NASDAQ
CUBE
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