Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: VidiVici who wrote (42162)	6/14/1999 9:47:00 PM
From: Manuel Vizcaya	Read Replies (3) \| Respond to of 50808

BancBoston Robert Stevens released a reseach report on CUBE today. They did not change their recommendation (Buy) nor any of their sales or earnings estimates. They have for the first time attempted to value CUBE. The following is some of the text from the research report. Projected Valuation CUBE $956MM DIVI $996MM "Performing this analysis, we arrive at a projected $1.95 billion market cap for C-Cube by the end of the year, should the company execute to expectations, leading to a $42 price target over the coming 6-9 months." "C-Cube Semiconductor is a medium sized ($200+ million in revenues) company with a growth and profitability (55%+ GM) profile similar to that of most well performing semiconductor companies." "Going forward however, with the expected and on going convergence of data, voice and video onto a single network, we believe that the opportunities facing DiviCom are immense. Especially so, since the access markets appear to be advancing at a tremendous pace." "Given the nature of these opportunities, we anticipate that the role of the encoder or encoder/decoder(codec) as the case may be, clearly becomes critical. But again, given the ongoing convergence of data, voice and video onto a single network, we wonder if the need for an end-to-end solution that is capable of implementing an entire network is the need of the hour? To that extent, we expect that C-Cube might have to market its products in conjunction with that of a major networking system player, in order to arrive at an end-to-end solution for its customers." "Needless to add, we believe that the ongoing access rush that could provide bandwidth of several Mbps to the user is a clear boon for digital video. As the access deployments that are beginning to roll out today (cable or xDSL) gather speed, we believe that this could represent the third major inflexion point for C-Cube's business." There was no mention of potential buyout or merger in the report.