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Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (3049)	11/5/1999 9:29:00 AM
From: Thierry G.	Read Replies (4) \| Respond to of 4134

I am a portfolio manager so my technological knowledge of the product is minimum. From a business standpoint the chip business of C-Cube is very erratic in terms of pricing and very competitive. In my opinion it is worth at most 1.5 time sales ( ESST is a good example ) so close to $300 million not much more. Divicom is clearly the jewel as they have tremendous roster of customers (Direct TV, Canal+), they seem to be accelerating their execution and their revenues are much more recurring in nature. Also the management of Cube probably kept them away from the Wall Street spotlight. ( although it is hard for me to fault a team that bought Divicom for $67 Million in 1996 to sell it for $1.7 billion in Oct 1999!!! ). I do not understand yet were the synergies will come with Harmonic. Thierry