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: stockbug who wrote (45199)	9/23/1999 11:07:00 AM
From: Greg h2o	Read Replies (1) \| Respond to of 50808

I'm new to this thread, but not to the stock. thought you guys might want to see the recent Alex Brown comments: Sept 20, 1999 C-Cube Microsystems: CUBE appears to be tracking according to schedule as the company anticipates revenues of $100 million in 3Q99. Leading growth businesses continue to be the Divicom division and integrated circuits for DVD applications. DVD-related revenues also remain on the rise as the company continues to build on its already impressive customer base. Specifically, DVD Consumer should be up slightly on a sequential basis while DVD PC is expected to be flat quarter to quarter with an expected growth surge in 4Q as units are more deployment oriented. Other businesses such as set-top boxes are demonstrating solid growth. Profitability also remains extremely strong. We continue to be very bullish on C-Cube. We believe the company should have significant opportunities to expand existing customer relationships within its Divicom division as well as ample room for capturing new customers, particularly among U.S. broadcasters. Divicom is already the leading supplier in Direct to Home satellites, European cable and U.S. telco markets. Semiconductor opportunities also remain very strong. The company remains the dominant provider of MPEG devices to the DVD market. Moreover, the set-top box market continues to represent superb growth opportunities, in our view. It is clear now that the company's new management structure has reached full cohesion. We continue to be impressed with the changes that we have observed as the company has created a more unified management team. As the revenue mix is becoming increasingly balanced by geographic sales breakdown, with particular strength in Japan, the results are becoming clear. We also note that the breakdown of sales by product type is becoming less dependent on the VideoCD market. We look forward to even less seasonality in 2000 as the mix is more dependent on the faster-growing communications end markets. Our earnings per share estimate for 1999 is $1.33 and $1.61 for 2000. Our 12-month stock price target is $48, or 30 times our year 2000 EPS estimate. We maintain our STRONG BUY investment recommendation on shares of C-Cube Microsystems.

To: stockbug who wrote (45199)	9/23/1999 11:17:00 AM
From: BillyG	Read Replies (3) \| Respond to of 50808

I've been away from the thread for a few days and when I scanned the posts I was amazed at much attention the thread gave to "imagining" the potential effect of the Taiwan quake on CUBE. The quake was a personal disaster for many families in Taiwan. It has affected DRAM and LCD prices because those are high volume commodity products made in a continuous production process and the prices are very sensitive to supply/demand. In contrast, CUBE is a fabless semi company (aside from DiviCom, which is a major portion of CUBE's revenues and profits and largely unaffcted by the events in Taiwan). Fabless companies have their chips made in batches and they generally use more than one fab supplier. Fabless companies have systems in place to deal with the possibility of interrupted supply from one fab manufacturer. There are many things that can interrupt chip supply -- bad wafers, power interruptions, fires, process problems, new equipment, worn equipment, new masks, old masks, contamination, human error, wire bonding and packaging, and many more problems. Fabless companies plan for these problems, and if they plan correctly they will do fine whether there is an earthquake or a production problem. In other words -- no more Taiwan/CUBE comments unless someone has substantive news regarding CUBE's production.