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

To: Thierry G. who wrote (3050)	11/5/1999 12:14:00 PM
From: Stoctrash	Read Replies (1) \| Respond to of 4134

<I do not understand yet were the synergies will come with Harmonic.> Their products go hand in hand with the convergence of video, data, & voice over the pipes. Your best bet is to browse around www.divi.com and see for yourself.

To: Thierry G. who wrote (3050)	11/5/1999 2:21:00 PM
From: Black-Scholes	Read Replies (1) \| Respond to of 4134

You're knowledge of CUBE is woefully inadequate. If you're a money manager, and you're rendering those kind of opinions ("CUBE's chip business is worth 1.5 times sales"), it's no wonder that most money managers (and NEVER the same ones consistently) DON'T beat the indexes in which they operate. Dude, get a clue about the chip business and look at CUBE semiconductor's peers for market valuations - if you even know whom those peers would be. Shsssss.

To: Thierry G. who wrote (3050)	11/5/1999 3:31:00 PM
From: view	Respond to of 4134

Cube's semi business is worth a lot more than 1.5X sales (like ESST) ESST gross margin is at 38% at best, semi side had a higher margin than divicom at 60% (Divicom was about 50%). Gross margin and top line growth are THE two most important matrix's anybody should follow. From Gross margin's point of view, CUBE needs to be compared with elite of semi's like ALTR, XLNX, MXIM, LLTC which all trade at 10X of sales. From top line growth, well this is the area which they have not done so well and market is punshing them. To analyze the top line growth: 1- communication side This was almost flat about 6-8 millions per quarter. small nich market in the past 2- STB they did not have a compeling product. rev was flat about 6 to 10millions/quarter 3- Consumer The grew in this area in market share and volume, but ASP took a nose dive and bottom line had a negative effect to the reve growth. The positive side was that they were able to take market share during this fierce price pressue and still maintain 60%+ grossmargin Going forward: 1- Communication side should get a boost form their DV explore 2- STB is clearly the segment that is going to grow the fastest and where Alex is putting R&D 3- Consumer side is expanding due to DVD So if they can show rev growth in semi and keep their 60% GM (Alex said in teh conference call that Semi is going to grow at thesame pace as Divicom) then at IPO time they can conservatively get a 5X multiple Problem with CUBE is they have no marketing to speak of.

To: Thierry G. who wrote (3050)	11/5/1999 3:31:00 PM
From: view	Respond to of 4134

Cube's semi business is worth a lot more than 1.5X sales (like ESST) ESST gross margin is at 38% at best, semi side had a higher margin than divicom at 60% (Divicom was about 50%). Gross margin and top line growth are THE two most important matrix's anybody should follow. From Gross margin's point of view, CUBE needs to be compared with elite of semi's like ALTR, XLNX, MXIM, LLTC which all trade at 10X of sales. From top line growth, well this is the area which they have not done so well and market is punshing them. To analyze the top line growth: 1- communication side This was almost flat about 6-8 millions per quarter. small nich market in the past 2- STB they did not have a compleeling product. rev was flat about 6 to 10millions/quarter 3- Consumer The grew in this area in market share and volume, but ASP took a nose dive and bottom line had a negative effect to the reve growth. The positive side was that they were able to take market share during this fierce price pressue and still maintain 60%+ grossmargin Going forward: 1- Communication side should get a boost form their DV explore 2- STB is clearly the segment that is going to grow the fastest and where Alex is putting R&D 3- Consumer side is expanding due to DVD So if they can show rev growth in semi and keep their 60% GM (Alex said in teh conference call that Semi is going to grow at thesame pace as Divicom) then at IPO time they can conservatively get a 5X multiple Problem with CUBE is they have no marketing to speak of.