C-Cube Sets Quarterly, Annual Revenue Records; Semiconductor Division Expanding in Three Growth Markets
MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 20, 2000-- C-Cube
Microsystems (Nasdaq:CUBE) today announced record revenues for the
fourth quarter and for fiscal 1999. Revenues for the quarter totaled
$115.7 million compared with $95.8 million for Q4 98 and $101.4
million for Q3 99. Total revenues for 1999 reached $407.6 million
compared with $351.8 million for 1998.
Net income for the fourth quarter was $18.6 million, or $0.40 per
diluted share, 50% higher than the Q4 98 net income of $12.4 million,
and a 33% increase over Q3 99.
"Our fourth-quarter financial performance highlights an excellent
year for C-Cube," said the company's Chief Executive Officer Alexandre
Balkanski.
During the quarter, C-Cube entered into a definitive agreement to
combine its wholly-owned DiviCom subsidiary with Harmonic
(Nasdaq:HLIT), and to spin off or sell its semiconductor business in a
taxable transaction prior to the close. The transaction is currently
expected to close in March, 2000.
During the quarter, DiviCom joined partners MediaOne, Canal+ and
Philips to launch the nation's first open digital cable-television
architecture in Jacksonville, Florida.
"The succession of major MSO's that have adopted DiviCom
technology validate an accelerating trend toward a new, more open and
competitive cable equipment market," said Tom Lookabaugh, President of
DiviCom. "We are confident we can win in an open-cable equipment
market because we have the technology, partners and expertise to
target each customer's specific competitive situation."
"C-Cube Microsystem's semiconductor division finished 1999 with
excellent growth in our three key markets: DVD, CODEC
(encoders/decoders) and digital set-top box," Padval said. "In the
CODEC market, we have developed the only consumer-priced single-chip
solution for a family of recordable digital video products including
digital VHS, DVD-Recordable and personal video recorders. We
established momentum in the growing digital satellite and cable
set-top business this year with our important partners in the U.S.,
Europe and Japan.(a) C-Cube also delivered nearly 4 million DVD chips
in 1999, more than doubling its 1998 DVD revenue and strengthening its
position as an industry leader."(a)
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Other fourth-quarter business achievements include:
-- Cablevision selects DiviCom to provide digital television
head-end equipment to its largest market, the New York
metropolitan area.
-- DiviCom teams up with 21 other members of the OpenCAS consortium
to submit for standards-body approval a new set of open cable
standards that will enhance services, increase competition and
give greater choice to U.S. cable television consumers.
-- DiviCom wins a head-end deployment for the first digital MMDS
television system in China.
-- Cisco Systems selects C-Cube's new single-chip DVxpert(TM) 5120
broadcast CODEC for its Video-Over-IP Networking product, the
IP/TV 3400 Broadcast Server. The CODEC provides MPEG-1 and MPEG-2
video encoding for streaming video over the Internet.
-- C-Cube and four industry leading hardware and software companies
team up at COMDEX '99 to demonstrate the first generation of
PC/TV, TV timeshifting and video editing products based on
C-Cube's DVxplore(TM) MPEG-2 CODEC silicon.
About C-Cube
C-Cube Microsystems Inc. is the industry leader in the
development and delivery of highly integrated digital video silicon
and systems solutions. C-Cube's Semiconductor Division delivers
digital video silicon and systems solutions for the communications and
consumer electronics markets. C-Cube's DiviCom Division is a leader in
the deployment of digital video networks. C-Cube is headquartered in
Milpitas, California with offices in North America, Europe, and Asia.
Its stock is traded on the Nasdaq under the symbol CUBE. C-Cube can be
reached at +1.408.490.8000 or at c-cube.com. C-Cube's
DiviCom Division is based in Milpitas, Calif. and can be reached at
+1.408.944.6700 or at divi.com.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Actual results could differ
materially from those projected in the forward-looking statements as a
result of the risk factors set forth in the Company's Forms 10-K and
10-Q reports and in C-Cube Semiconductor Inc.'s Registration Statement
on Form 10. The Company has attempted to identify forward-looking
statements in this press release by placing an asterisk(a) following
each sentence containing such statements.
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and equivalents $ 144,296 $ 108,224
Short-term investments 175,357 99,603
Receivables - net 74,850 36,980
Inventories 19,335 16,073
Deferred taxes and other current assets 31,789 31,147
Total current assets 445,627 292,027
Property and equipment - net 35,349 29,622
Production capacity rights 4,985 12,600
Distribution rights - net 1,318 1,483
Purchased technology - net 4,194 5,921
Other assets 3,892 1,518
Total $ 495,365 $ 343,171
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 38,882 $ 19,942
Accrued liabilities 38,553 51,264
Current portion of long-term obligations 376 355
Total current liabilities 77,811 71,561
Long-term obligations 18,291 28,207
Total liabilities 96,102 99,768
Minority interest in subsidiary 471 28
Stockholders' equity:
Common stock 323,756 225,265
Accumulated other comprehensive loss (2,204) (1,852)
Retained earnings 77,240 19,962
Total stockholders' equity 398,792 243,375
Total $ 495,365 $ 343,171
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
1999 1998 1999 1998
Net revenues $115,726 $95,800 $407,648 $351,797
Costs and expenses:
Cost of revenues 50,944 44,071 181,891 160,839
Research and development 22,707 18,897 84,366 74,031
Selling, general and
administrative 18,760 16,756 69,437 60,512
Total 92,411 79,724 335,694 295,382
Income from operations 23,315 16,076 71,954 56,415
Other income, net 3,372 1,692 10,456 4,239
Income before income taxes,
minority interest and
extraordinary item 26,687 17,768 82,410 60,654
Income tax expense 8,006 5,327 24,723 18,196
Income before minority interest
and extraordinary item 18,681 12,441 57,687 42,458
Minority interest in net income
(loss) of subsidiary 61 17 442 (337)
------- ------- ------ ------
Income before extraordinary item 18,620 12,424 57,245 42,795
Extraordinary gain on buyback
of convertible notes -- -- 33 3,494
Net income $18,620 $12,424 $57,278 $46,289
Income per diluted share before
extraordinary item $0.40 $ 0.31 $ 1.30 $ 1.11
Extraordinary gain per
diluted share -- -- -- 0.09
Net income per diluted share $ 0.40 $ 0.31 $ 1.30 $ 1.19
Shares used in computation 47,424 40,708 44,571 40,754
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CONTACT:
C-Cube Microsystems
Alan Markow, 408/490-8707
Corporate Communications
alan.markow@c-cube.com
Steven Horwitz, 408/490-8561
Investor Relations
steven.horwitz@c-cube.com |
