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

To: Black-Scholes who wrote (43109)	7/16/1999 1:33:00 PM
From: JPM	Read Replies (2) \| Respond to of 50808

My summary of the Conference call... the stuff not in the press release Divicom's future Dominance in point-to-multi-point networks Interactive tv market Semiconductors Revs: DVD, SetTop, Codec... less VCD dependence US, Europe, Japan, Korea R growth areas DVD: +30% from Q1 1MM units for Q2 Set Tops: Nokia & Phillips in Germany Pace in UK (90% of set tops in UK) Codec: Grew 30%ish in the quarter Best Q2 ever Next year, no revenue seasonality US, Japan, Korea revs up nicely DVD: 1MM units Q2… will continue to accelerate Will become a “global high growth market for C-Cube” Set Tops: Market leader in Europe Communications: 2/3 of total revenues No longer 1 product company. Q&A: DVD: mostly in Japan & Korea Consumer DVD… 30% growth in 2nd half at least Reason for loss of revenue seasonality: “3 legged stool”… Divi, Set Tops, DVD… less VCD Revs Breakdown: 40% Satelllite, 15% Broadcast, 30% Cable (2/3 Europe, 1/3 US), 20% telcos DVD OEMs: Samsung, JCV, Hitachi/Acer, LG Elect Dell DVD is 70% consumer, which is the growth area Cube has 30% DVD market share. DVD market… from 2MM in 1998 to 7MM in 1999 Divx decline will cause sales to accelerate DVD-R market is a couple of years out. Next 2 Quarters: Divi: Q3 similar to Q2 (historically) Semis: Q3 and Q2 are the seasonally low quarters Overall: Incremental growth in Q3, accelerated growth in Q4. My guess… Q3 104.5MM revs Q4 115-125 MM revs Gross margins should remain in mid 50s in the foreseeable future. China market exposure: 15%ish in Q2 What's interesting, though, is that if you figure Q4 revs in the 115 range, with Q over Q growth, it looks like CUBE will easily have 500MM in revs in 2000. Which is nice.