Earnings 0.02:
C-Cube Announces First Quarter Results
Cable Modem Product Submitted for DOCSIS Certification
MILPITAS, Calif., April 24 /PRNewswire Interactive News Release/ -- C-Cube Microsystems (Nasdaq: CUBE - news) today announced first quarter revenues of $50.1 million compared with $61.0 million for Q1 00 and $74.0 million for Q4 00. Net income for the first quarter was $1.2 million, or $0.02 per diluted share compared to $8.3 million or $0.16 per diluted share for Q4 00.
``We are pleased to see that the end user demand for our consumer products continue to be a bright spot in this current economy,'' said Umesh Padval, president and CEO of C-Cube. ``We are also excited about our entry into the communications market with the submission of our cable modem for DOCSIS certification at Cable Labs.''*
During the first quarter, the consumer DVD market continued to show strength, eliminating excess inventories that existed following the completion of the holiday season. We believe that this, coupled with the first shipments of the Ziva-5 product, should provide a solid base for growth into the second half of the year. The DVD market is estimated to grow to 25-30 million units in 2001.*
C-Cube's Set-top box solution also realized nearly 30% growth over the first quarter of 2000 as the Company continued to integrate additional functionality into its products. During the second half of 2000, the Company introduced a two-chip solution that allows the box to process digital video as well as communicate with the cable head end. The front-end communications chip has been submitted for DOCSIS certification in the past couple of weeks. Successful certification of the product should provide C-Cube the opportunity to increase its revenue in the cable set-top box and cable modem markets.*
During the quarter, C-Cube entered into a definitive merger agreement in which LSI Logic has agreed to acquire C-Cube. In the transaction, each outstanding share of C-Cube common stock is to be exchanged for 0.79 of a share of LSI Logic common stock. During today's conference call, C-Cube will not be making any comments with respect to the specifics of any filings or timing regarding the close of the deal. In other news, C-Cube's CFO, Howard Bailey, has elected to leave the Company in order to pursue other interests.
Earnings Conference Call
C-Cube has scheduled a conference call for today at 4:30 EDT to discuss the results of the fourth quarter and year-end results. To listen to the call, please visit www.c-cube.com for the live audio web cast or dial 212-346-6555 (no passcode) at least 5 minutes prior to the call. The call will be available to replay for 48 hours following its completion by dialing 800-633-8284 (passcode: 18560534).
About C-Cube Microsystems
The Company is a worldwide leader in digital media processing and is leading the way with new communication processors and networked consumer products. With a focus on DVD, Set-top boxes and codec enabled products, C-Cube is driving the technology for the ``networked digital home.''
C-Cube is headquartered in Milpitas, California and has offices in North America, Europe, and Asia. For more information please visit our web site at www.c-cube.com. C-Cube, the C-Cube logo and AViA@TV are registered trademarks of C-Cube Microsystems, Inc. All other trademarks or registered trademarks are the property of their respective owners.
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. The forward-looking statements involve risk and uncertainties. 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 the Company's Registration Statement on Form S-1. The Company has attempted to identify forward-looking statements in this press release by placing an asterisk (*) following each sentence containing such statements The Company assumes no obligation to update any forward-looking statements.
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, December 31,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $59,787 $49,736
Short-term investments 6,875 2,798
Receivables - net 22,197 23,273
Inventories - net 13,218 17,505
Other current assets 22,150 21,620
Total current assets 124,227 114,932
Property and equipment - net 16,364 17,908
Production capacity rights 23,115 23,560
Distribution rights - net 1,112 1,153
Purchased technology - net 1,393 1,466
Deferred taxes and other assets 57,953 63,540
Total $224,164 $222,559
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $9,905 $19,435
Accrued liabilities 21,324 29,979
Income taxes payable 866 5,863
Current portion of long-term obligations 23,566 28,744
Total current liabilities 55,661 84,021
Long-term obligations 1,221 1,299
Total liabilities 56,882 85,320
Minority interest in subsidiary 408 543
Stockholders' equity:
Common stock 165,331 136,209
Accumulated other comprehensive loss (1,913) (1,757)
Accumulated earnings 3,456 2,244
Total stockholders' equity 166,874 136,696
Total $224,164 $222,559
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
March 31,
2001 2000
Net revenues $50,052 $61,002
Costs and expenses:
Cost of product revenues 23,066 26,754
Research and development 14,795 14,154
Selling, general and administrative:
Selling, general and administrative 11,721 10,748
Stock-based compensation and
merger/spin-off related payroll taxes -- 3,413
Total 49,582 55,069
Income from operations 470 5,933
Other income, net 1,004 3,775
Income before income taxes and minority interest 1,474 9,708
Income tax expense for continuing operations 397 2,621
Income from continuing operations before
minority interest 1,077 7,087
Minority interest in net income (loss)
of subsidiary (135) 7
Income from continuing operations 1,212 7,080
Discontinued operations:
Income from operations of DiviCom
business, (net of tax) -- 1,552
Loss on disposal of DiviCom (net of tax) -- (7,348)
Net income 1,212 1,284
Basic earnings per share amounts:
Income from continuing operations $0.02 $0.16
Income from discontinued operations -- 0.04
Loss on disposal of DiviCom (net of tax) -- (0.17)
Net income $0.02 $0.03
Diluted earnings per share amounts:
Income from continuing operations $0.02 $0.14
Income (loss) from discontinued operations -- 0.03
Loss on disposal of DiviCom (net of tax) -- (0.15)
Net income $0.02 $0.03
Basic shares used in computation 49,979 43,884
Diluted shares used in computation 51,433 49,449
MAKE YOUR OPINION COUNT - Click Here
tbutton.prnewswire.com
SOURCE: C-Cube Microsystems |
