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

To: Maya who wrote (42627)	7/6/1999 5:33:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

Maya, my calculator doesn't go to $.32 this Q. Last year it would have, but the VCD market has changed. Let's take a look at C-Cube's growth: 1996 1997 1998 1999(est) Total Revenues $320M $337M $352M $418M VCD Revenue 224M 162M 135 95 % of revenue 70% 48% 38% 23% growth of VCD (27.7%) (16.7%) (29.6%) All other Revenue 96M 175M 217M 323M % of revenue 30% 52% 62% 77% Growth of other 82.3%* 24% 48.8% *Divicom's 1st full year. VCD revenues will continue to decline, the solid growth is in the other markets. We have a BIG decline in VCD revenue this Q. In Q2, VCD will come in at about $17M down nearly $15M from last Q. Set top boxes only grow about $1M this Q, Q over Q. Encoders are growing strong this Q, by about $4M or over double from last Q. DVD grows by $2M this Q. About 1/3 going into players. Divicom grows by about $6M. That leaves C-Cube's revenues about $2M less then last Q. It should produce a solid $.29 per share in earnings. There is potential up-side in all of the markets, they could be doing a little better. If they come in above $.29 per share, my guess would be that they did it with higher interest income. Short rates rose this Q. Depending on how C-Cube invests, they could drop a substantial earnings to the bottom line, just with interest income. Last Q, interest income was $.034 per share.