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

To: Cameron Lang who wrote (48008)	12/24/1999 10:43:00 AM
From: John Rieman	Respond to of 50808

Peddie report................................ digitalproducer.com A look at the News from The Peddie Report: Week of Nov. 1, 1999 The chips are down this week as the financial reports come in and the winners and losers tell their stories. Perennial winner, Intel has news chips to sell and the company rolled out their new 0.18-micron chips with a clear intent to create an industry juggernaut. Intel released new chips across their product line for servers, workstations, desktops and mobile computers. They've also introduced new packages for compact desktops, bookshelf computers, and mini-notebooks. Also, the company has four fabs online now making chips for all product lines and they've got another plant just about ready to go in the New Year. The plan to overwhelm the market with 0.18-micron chips will work in some segments, but feisty AMD will keep on chugging. They've got a brand new fab in Dresden they've just dedicated and it's ready to start cranking out 5000 8-inch wafers a week. Likewise, Sun didn't get the memo. They've just introduced their brand new Ultra 80 high end graphics workstation and they're promising next generation graphics that will keep them in the running against SGI. There's really just no decency in this business. As companies such as SGI and Intergraph register problems hitting their numbers with their workstation products, eager interlopers like Sun don't offer condolences, they just step right into the void. Get this, Sun said their customers begged them to get into the graphics visualization business in a bigger way because they were afraid of being abandoned by SGI. SGI's VP Beau Vrolyk strenuously disagrees and he spoke out to the UNIX community to tell them SGI intends to stay in the game and keep innovating. On the NT side, IBM has stepped up to the plate with new IBM workstations for the design and content market. Their new machines are built on Intel's new architecture for 0.18-micron chips and the new 840 chipset with AGP 4X and a 133 MHz front side bus. IBM is offering a smorgasbord of new graphics for these workstations including the FireGL developed in conjunction with Diamond, the Millennium G400 from Matrox, Appian's Gemini, and Intense 3D's Wildcat. If the story is to be told in dollar amounts it can be read in the latest quarterly results announcements. Who's winning? Sun is coining money. The system in the network is the computer and the system works. ATI's hanging on to what they got and they got plenty. C-Cube racked up another winning quarter. They announced sales of 1 million DVD chips for two quarters in a row and then they surprised everyone by selling their Divicom unit to Harmonic Inc., a company that builds products to enable high-speed Internet access, telephony and video on demand products. Divicom's a money maker so the deal is going to be good to Harmonic Inc. Meanwhile, C-Cube plans to spin out their semiconductor business into a separate company. C-Cube's competitor Zoran refocused their business a couple of quarters ago and it's paying off. The company reported increased revenues and they used black ink to print their bottom line. Focus is good. DVD is real good. There's plenty more. The Peddie Report is a weekly newsletter that provides news and informed commentary to industry professionals. You'll find news feeds, and a rundown of Jon Peddie Associates' services at our web site at jpa.com. The November 1 issue of The Peddie Report is available for download by online subscribers at our website jpa.com.