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

To: John Rieman who wrote (48390)	1/20/2000 6:42:00 PM
From: DiViT	Respond to of 50808

Earnings Roundup: Atmel, C-Cube surprise analysts By Larry Barrett ZDII Atmel Corp. (Nasdaq: ATML) became the latest semiconductor manufacturer to beat Street estimates in its fourth quarter Thursday, pocketing $33 million, or 16 cents a share, on sales of $388.7 million. First Call consensus expected it to earn 13 cents a share in the quarter. Atmel shares closed up 15/16 to 34 15/16 ahead of the earnings report. In the year-ago quarter, Atmel earned $9.9 million, or 5 cents a share, on sales of $288.7 million. For the year, Atmel earned $82.4 million, or 40 cents a share, on sales of $1.33 billion compared to a loss of $50 million, or 25 cents a share, on sales of $1.11 billion in fiscal 1998. "This quarter finishes a very successful year for Atmel," said CEO George Perlegos in a prepared release. "We are pleased by the increasing number of customers who are using Atmel's wide range of products, particularly in the wireless telecommunication end market." Atmel shares hit a 52-week high of 35 1/16 earlier this quarter after falling to a low of 6 13/16 in February. Among other technology companies reporting earnings Thursday: C-Cube Microsystems Inc. (Nasdaq: CUBE) also topped analysts' estimates in its fourth quarter, raking in $18.6 million, or 40 cents a share, on sales of $115.7 million. First Call consensus expected it to earn 37 cents a share in the quarter. C-Cube shares closed up 4 to a 52-week high of 73 7/8 ahead of the earnings report. "Our fourth-quarter financial performance highlights an excellent year for C-Cube," said CEO Alexandre Balkanski in a prepared release. In the year-ago quarter, C-Cube made $12.4 million, or 31 cents a share, on sales of $95.8 million. For the year, it earned $57.2 million, or $1.30 a share, on sales of $407.6 million compared to a profit of $46.3 million, or $1.11 a share, on sales of $351.8 million in fiscal 1998. C-Cube shares hit a 52-week low of 17 1/4 in March. zdii.com

To: John Rieman who wrote (48390)	1/20/2000 6:54:00 PM
From: Peter V	Read Replies (2) \| Respond to of 50808

OK, I think I get this, but when CUBE semi spins off, and we all get coupons for the new CUBE semi, the old CUBE is an empty box? Like a snake sloughing off its old skin? I haven't looked at this very closely to understand why it's necessary to spin off. Why can't they just keep going forward with the "old" CUBE after they sell off the Divi portion? Is it a tax benefit that I can't see right now? I know they said the spin will be taxable, but I'm not sure why they can't just continue with the old CUBE and not incur those taxes. Perhaps it's because the HLIT share exchange is NOT a taxable event. Any accountants or tax lawyers in the audience?