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

To: Trieu who wrote (46295)	10/19/1999 10:45:00 PM
From: Black-Scholes	Read Replies (2) \| Respond to of 50808

That comment is wrong on a wholesale level and reflects a fundamental misunderstanding of CUBE. Divicom now accounts for 50% of CUBE's revenues and is growing at solid 30% clip. Divicom is the driver (if CUBE's semi division is growing at faster clip than 30%, I'll GLADLY eat my words). CUBE is a networking company.

To: Trieu who wrote (46295)	10/20/1999 10:25:00 AM
From: BillyG	Read Replies (1) \| Respond to of 50808

There is a very interesting and complementary dynamic between CUBE semi and DiviCom. I believe that the synergy is unique in the industry although companies such as Lucent and MOT/GI may disagree. These are just a few of the benefits I see in the combo: 1. Diversified revenue sources with complementary business objectives. 2. The systems designed and sold by Divi need leading edge chips to make them work. CUBE designs and supplies the chips that help make Divi systems both cutting edge and competitive. 3. The chips designed by CUBE need to incorporate the features that customers will need now, and will need in the future. Divi can define these features as both a CUBE customer and as internal resource that receives feedback from Divi customers. This helps CUBE define the designs for chips to meet the market requirements, and even to anticipate market requirements. 4. Cube/Divi can take the end-to-end sytem perspective by supplying encoding equipment and chips, decoding equipment and chips, settop box chips, settop box control equipment and chips, transmission equipment and chips, and receiver equipment and chips. TV/COM fits very nicely into this scenario. 5. The standalone consumer aspect of Cube's chip business is in itself successful, and it is migrating into the networked system environment through standalone recorders, settop recorders, networked PC-DVD and DVD players. I am sure there are many other synergies that I have not mentioned and others that we do not know because they are still brewing in CUBE/Divi's R&D labs. Take a blank sheet of paper, write down each core technology and market for DiviCube and draw a circle around each one. Then connect the big dots. You'll get the picture! (I'm talking to you, Mr./Ms. Analyst.)