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: Black-Scholes who wrote (43434)	7/29/1999 2:04:00 PM
From: Black-Scholes	Respond to of 50808

Still more: MPEG-1 Decoder Market Share MPEG-1 decoder chips are used primarily in VideoCD players. While the players are popular throughout Asia, China is by far the largest market for Video CD players. Any MPEG-1 decoding in PC applications can be done in software. One of the first entrants in this market, C-Cube introduced its first MPEG-1 decoder in 1992. C-Cube has a relationship with Tatung for MPEG-1 decoders for Tatung's Video CD players. In 1997, C-Cube had only slightly higher shipments of MPEG-1 decoders over ESS Technology. In 1998, C-Cube's shipments of MPEG-1 decoders remained stable and C-Cube remained ahead of ESS. With the purchase of VideoCore in 1996, ESS Technology gained the necessary products for entry into the MPEG-1 decoder market. In the second quarter of 1996, ESS Technology began shipping chips to the VideoCD market and became the low price leader. Their third-generation VideoCD player chip, the Visba™, was introduced in May 1998. In 1998, ESS Technology shipped just over 9 million MPEG-1 decoders. Though C-Cube and ESS are the largest players in the MPEG-1 decoder market, other companies also shipped product in 1998. LuxSonor, a small private company of 70 people, began shipping MPEG-1 decoders in 1997. The Taiwanese semiconductor manufacturer Winbond offers several MPEG-1 decoders as well as other chips for VideoCD players. They shipped 3 million MPEG-1 decoder chips in 1998. The ASP of MPEG-1 decoders continued to drop in 1998 to about $6. This decline in ASP from 1997 is demonstrated in C-Cube's revenue figures. Even though their unit shipments in 1998 remained even with those of 1997, their MPEG-1 decoder revenue dropped by 45%. The price declines have enabled lower price VideoCD players, which has only increased their popularity. [edit (table wouldn't paste in correctly)] 1998: Units Revenue %Share Rev %Share Units Cube 11.56mm $88.39mm 52.90% 47.35% ESS 9.05mm $58.84mm 35.21% 37.06% Windbond 3mm $15mm 8.98% 12.28% LuxSonor 410,000 $2.46mm 1.47% 1.67% [end edit] Total annual shipments of MPEG-1 decoder chips actually decreased slightly in 1998. MPEG-1 revenues took a beating, declining by 39%.