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Technology Stocks : Stock Swap

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To: p. webster who wrote (195)2/19/1997 12:10:00 PM
From: Trader X   of 17305
 
P., did you catch this news?

C-Cube Microsystems Inc tumbles after Fortune article

NEW YORK, Feb 19 (Reuter) - Shares of C-Cube Microsystems Inc dropped after a Fortune magazine article suggested the company's market
share is slipping and its prospects for the digital videodisk market are dim.

C-Cube lost 2-1/8 to 24-1/2 on Wednesday and was one of the most active Nasdaq issues. Analysts said shares of C-Cube dropped sharply after the March 3, 1996 issue of Fortune hit the streets.

The article suggested that C-Cube faces two problems. The Milpitas, Calif.-based company is losing grounds in the video compact disk player market to rival ESS Technologies Inc , and ESS is gaining market share with its less expensive chip, Fortune said.

The delayed U.S. roll-out of the digital videodisk (DVD) player also will hurt C-Cube, the article said.

There will be several competitors in the DVD market and limited demand initially, due to the high price of the product, the article said.

Fortune also said C-Cube may have to wait a "long while" before it makes any money off the DVD business.
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