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Technology Stocks : C-Cube
CUBE 37.68+1.7%Jan 9 9:30 AM EST

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To: John Rieman who wrote (10328)2/24/1997 1:22:00 PM
From: DiViT   of 50808
 
I sent this to the "fool":

To: mftemplar@aol.com
Subj: Cube and new chips. You don't get it.

There's a difference between DVD & VCD. You should learn it.
The new chips Cube is offering are DVD chips (much different than VCD chips).

ESST & Cube compete on VCD chips in China only. These VCD chips are the ones that Cube dropped price on. Also the fact that Cube dropped price is rumored to have taken away ESST customers and contributed to the sudden departure of their president. ESST was hurt by the Cube price drop at the BEGINNING of this quarter.
Also worth noting is that Fred Chan ESST CEO said in the Q4 conference, call that ESST will not have revenue from DVD.

CUBE will recover margins on the new DVD chips and their other business's (DVD encoding, Broadcast Satellite Encoding, Teleconferencing and the Set-top decoder market with their subsidiary Divicom).
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