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

To: Stoctrash who wrote (43003)	7/15/1999 4:50:00 PM
From: BillyG	Respond to of 50808

Now it's AB: "This Q2 is our lowest Q2 decline in history." PUUULEASE!!!!

To: Stoctrash who wrote (43003)	7/15/1999 4:53:00 PM
From: BillyG	Read Replies (1) \| Respond to of 50808

AB: CUBE shipped more DVD in Q299 than in all of 1998. China will be big. May be a transition issue from VCD to DVD. Communication revenue is 2/3 of total CUBE revenue! We have transitioned the company from the one product/one continent company of three years ago.

To: Stoctrash who wrote (43003)	7/15/1999 4:55:00 PM
From: BillyG	Read Replies (1) \| Respond to of 50808

Alex Brown: Congrats on a good Q!!! First Q is to Divicom!!! TWC encoder wins have already impacted Divi's income (most of the impact was in Q2). Expect more wins later. 2nd Q; tightened fab capacity impact -- Cube has capacity contracts in place.

To: Stoctrash who wrote (43003)	7/15/1999 5:12:00 PM
From: Peter V	Read Replies (1) \| Respond to of 50808

This year was best 2Q ever, and least amount of differential from Q1 ever. Revenue seasonality will diminish. DVD going to ramp up by year end. Moving away from reliance on VCD (DVD?), and will be more stable company, with less seasonality. Questions: Alex Brown: Divi - when will Time Warner revenue come in? Tom: already has, encoders and multiplexers shipped, so we are done? Further impacts from future business, we expect. Capacity on semi side, concerns? Yes, 2Q saw some capacity contraction, but we have secured capacity for 3Q and 4Q. Robbie Stephens: Who is closest competitor in encoders? News Corp based in UK, with 2/3 of CUBE's 5000 encoders deployed. Increasing number of projects, growing faster than revenue growth, with duration of 6-9 months. Japan and Korea currently has most demand for semi biz. Alex: three legged stool makes us more stable: STB, Divicom and semi. * * * Consumer DVD growth is highest. Cube has 30 percent of worldwide DVD market!!!!!!!!!!!!!! WOW! DVD accelerating fast, Best Buy has players for $200. Blockbuster rentals now available, Divx gone, looks like a bright future. STB area: time-shifting, recording are great emerging areas for CUBE. Recordable DVD: 2 standards, still a couple years out. Time-shifting and STB area are the short term growth areas. Camcorders: not yet. Focusing on the STBs and growth areas now. Revenue projections for next two Q's. Divi: well-established positions in sat, telcos, and now penetrating cable, will be about the same for 3Q, stronger Q4. Semis: seasonal dynamic still at work, 3Q weak (flat?), 4Q stronger, due to seasonality of DVD sales. Seasonality diminshing. Margin will be flat but good, 55%. Revenue distribution: Semi 50+%, Divi just under 50%. Reliance on China revenue is diminishing. Call over.