C-Cube Message Board - Msg: 8817412

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Technology Stocks : C-Cube

CUBE 35.90

+0.2%

Dec 26 9:30 AM EST

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To: ftmp who wrote (39749)	4/9/1999 9:11:00 PM
From: Don Dorsey	Read Replies (1) of 50808

In case anybody wants to review, here is a summary of last year's Q1 CC. The current Vegas odds are 12-1 that this year will be almost a complete rehash of last year's. Go to the MIR thread to place your bets. summary of conference call from Motley Fool Apr 18 1998 12:37PM EDT Subject: Re: Conf Call Date: Thu, Apr 16, 1998 21:28 EDT From: JMKCFO Message-id: <1998041701285100.VAA26637@ladder03.news.aol.com> This is commentary from some subscibers to the SI board that listened to the conference call with Alex B (Pres of C-Cube) after the announcement of earnings for 1Q98. recordable DVD will be offered by the end of the year, thats when CUBE expects DVD revenues to become significant Alex is optimistic about the balance of the year after the 2nd qtr. the second qtr to be rough just like the 1st divi looking at very "large" growing markets for its products vcd units in china continuing to grow quarter 2 gross margin will be 53% , i.e. flat revenue to be flat to down (in q 2) net will be lower because of lower revenue from VCD growth in set top box will be in 3rd and 4th qtrs q 2 will not be as bad as last year per Alex VCD units grew in q1 vs q4 gross margins are still at least 50% CUBE has very aggressive plans for introduction of consumer products in the digital video area Bill gates demonstration is a sign of things to come revenue from these new products to come after 1999 Gross margins at 53% were lower than expected because of a $5M order that Divi did with a partner. Q2 could be one to two points higher. Nobody asked about the lower share count. Two more laptop wins to be announced. Did you catch the part about IBM using Divi encoders for video networking? JVC and C-Cube working on Digital VHS. The format doesn't matter to C-Cube, they will all need to encode video. Divi grows each Q this year. Alex said that they have been working VERY hard for the last four or five quarters to bring in the EPS that they have. ASPs have dipped below $10 ($9.50 - $10.50) on VCD chips. It sounded like they would struggle to keep EPS at $0.27 in Q2 and there is a chance that it will be lower because of VCD. Alex also too k a shot at ESS saying, "the competition, if you want to call it that" has not had an impact on VCD business with the introduction of VCD 3.0. DVD consumer has been a disappointment thus far. Say what? IBM using Divi encoders? Doesn't surprise me. IBM after toying around with their own products will ultimately buy others if they can't meet price points. Marketing runs IBM. That's their strong point. The .27 earnings wasn't a blowout, but it was good enough on the heals of all the announcements that I think it will pinch the shorts. The share price seems to be taking off already. Yeap! IBM uses Divi encoders for networks. If you can't beat them, join them. JVC/CUBE -- JVC built the first digital tape decks for recording home video. They used DVC -- now it looks like they're adopting MPEG-1 and/or MPEG-2! Message 4113008

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