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

To: BillyG who wrote (46300)	10/19/1999 8:21:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

Serial unveils gadget to replace VCR Leong Chan Teik 10/14/1999 The Straits Times (Singapore) Page 59 Copyright 1999, STP (1975) Limited Touted as the first of its kind in the world, the CD-video recorder will be sold online from next year SERIAL System has acquired a stake in a China joint venture to manufacture a new product that may push the video cassette recorder into obsolescence eventually. Sesdaq-listed Serial has invented a CD-video recorder, the first in the world, which replaces tape with a compact disc. Thanks to the Internet, the company will be able to sell the gadget online from February without needing to set up extensive distribution channels, said Serial chief executive officer and president Eddie Chng, in an interview with The Straits Times yesterday. The company is paying about $2.3 million cash for a 51 per cent stake in Ying Yeh Electronics in Guangdong. The remaining stake will be held by Ying Fook, a Chinese manufacturer, which will inject about $2.2 million worth of assets, in particular its factory. Ying Fook is a leader in China in manufacturing CD loaders, on which CDs and CD-ROMs whirl while being played. Serial's acquisition will lower its production costs and enable it to compete with rivals when they come on the market in a year or two, said Mr Chng, 37. The CD-video recorder is the result of two years of in-house research. "We are sure we are ahead of the market. We know the Japanese tried two years ago but failed," he said. Though it will be sold over the Internet, Serial will open offices in San Francisco and London next year to handle sales. Mr Chng said he expected sales to hit 100,000 units in the first year. Serial will market the product on its own before allowing original equipment manufacturers to sell it under their brand names. He conceded that one of the weaknesses of the product included the short 74-minute recording time of a CD-ROM, versus the 250 minutes of a video tape. Sales of another new Serial product, the CD-audio recorder, are expected to hit 100,000 units next year. The recorder has two CD trays, allowing music from one CD to be copied onto the other CD. The device will be distributed under brand names such as Philips, and will retail for around US$299 (S$502). In all, the two products are expected to contribute more than 60 per cent to Serial's revenue next year, said Mr Chng. For the year ended June 30, Serial's profit swelled 16.5 times to $9.18 million, due in part to a low earnings base in the previous year when it wrote off $3.6 million in bad debts. Its shares, which resumed trading in the afternoon after being suspended earlier, rose three cents to $1.10. FIRST IN LINE CD-VIDEO RECORDER Cost: US$499 (S$838) * Records TV programmes, camcorder images onto CD-Rom or CD-RW (rewritable) blank disc * CD-Rom can be played on PC, DVD and VCD player. * Recorded data can be sent over the Internet * CD-Rom not vulnerable to fungal attacks * CD-Rom is easily to move around * CD-Rom recording time: 74 minutes * Serial System's CD-RW: US99 EXISTING VIDEO TAPE PLAYER Cost: $199 and above * Records TV programmes, camcorder images onto video tape. * Tape can be played only a video tape player * Tape is vulnerable to fungal attacks (anti-fungus tapes are available) * Relatively bulky * Length of play: Up to 250 minutes * Blank tape cost: $5 each

To: BillyG who wrote (46300)	10/19/1999 10:25:00 PM
From: Craig Gordon	Read Replies (1) \| Respond to of 50808

By the call it is clear that by year end we will see Cube break through the 400 million mark in sales. Alex B. has too big an ego to miss that #. Anyone with a room temperature IQ can see that next year Cube breaks 500 Million (One Half Billion) in sales. With the growth in their markets and ability to hold up ASPs through integration earnings could become blow-out. By next earnings announcement CUBE could hit 65 and be poised to run to 100 - here's why. first 9 mos 1999 income 38,658 est last 3 mos 99 16,350 (109X.15) Total est 1999 55,008 Est 2000 100,000 (500,000X.20) Est 80% yr/yr increase in profits These numbers look aggressive, and they are, but as in the past when CUBE is growing and turning in the great numbers their profitability really skyrockets. Just look back to what happened in 1994 and 1995. History tends to repeat itself. This earnings growth will justify a higher PE. After the January #s are in it will become clear to anyone with a calculator what is going to happen. Everyone will be looking forward to what Cube will do in Y2K. The stock price will become based on it. To the moon Alice?