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

To: DiViT who wrote (47090)	10/29/1999 4:14:00 PM
From: Black-Scholes	Read Replies (1) \| Respond to of 50808

What did management say in their CC two weeks ago? What did they say about the average selling price in STB's? Everything will be fine. Give the market time to digest this essentially unprecedented deal structure.

To: DiViT who wrote (47090)	10/29/1999 4:58:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

DVD chip sales this year were $14M =Q1, $17M =Q2, Over $20M =Q3. ASPs started the year around $17, $15 now is not surprising. It's not the same as slashing VCD prices from $25 to $16, in one month. Gross margins have been maintained, indicating the as DVD volume increases, the cost to produce the chips is decreasing. Also, China is starting to buy DVD chips. Pricing, pricing, pricing. Chip ASPs decline 20% to 25% per year average, in the semi industry. C-Cube's DVD ASPs seem to be in line with that. The only way to hold the ASPs, is to add features. Time for ZiVA-4?