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

To: Vincent Le who wrote (24491)	10/27/1997 6:37:00 PM
From: BillyG	Read Replies (1) \| Respond to of 50808

1. Would it be true that this Asia crisis make goods from chip company that has plants in Asia more affordable to the consumers? Wouldn't this crisis lower their cost and make the prices of the chips more attractive? If CUBE pays TSMC (its Taiwanese fab) in U.S. dollars, then it may be a good deal for the fab, not CUBE. The other end of the equation is whether CUBE is paid for its chips in dollars or another currency, and whether the price of the chips is adjusted to some extent for major currency fluctuations. CUBE can hedge against currency exchange problems, if indeed there are any for CUBE. There are many more factors to consider than this, such as how demand may be affected for the end products using CUBE chips. For example, cheaper PCs mean more demand for PC-DVD. Cheaper VCDs mean more sales of VCD. Less disposable income means lower sales. Etc. etc. Someone else can do a far better better job of explaining the various positive and negative factors related to CUBE. Even economic experts may disagree with each other on this one . . . 2. Although some of the revenues from C-Cube has been from VCD market. It shouldn't be the only thing the C-Cube 'investment' is based on. June issue of Smart Money indicate that the primary long term fundamental of C-Cube is the acceptance of HDTV. So if you believe in the future of HDTV, wouldn't this be a good opportunity to pick some up cheap? I think it's a good price, but you should do your own research. Go to CUBE's web site. Review the posts on this thread that discuss the breadth of CUBE's products and services. Pay close attention to CUBE's DiviCom subsidiary.

To: Vincent Le who wrote (24491)	10/27/1997 7:07:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

Cube's 10-Q from Q2...................................... sec.gov International revenues accounted for 63% of net revenues for the second quarter, compared to 82% for the same period last year. The decline in international sales as a percentage of total sales is primarily due to increased encoder revenue in the U.S. market and decreased sales of decoders into China. The Company expects that international revenues will continue to represent a significant portion of net revenues. The Company's success will depend in part upon its ability to manage international marketing and sales operations and manufacturing relationships. In addition, C-Cube purchases a substantial portion of its assembly services from foreign suppliers. C-Cube's international manufacturing and sales are subject to changes in foreign political and economic conditions and to other risks including currency or export/import controls, changes in tax laws, tariffs and freight rates and changes in the ownership and/or leadership of international customers that may result in delayed or canceled orders. For example, China and Taiwan comprise substantial markets for consumer electronics products utilizing the Company's MPEG 1 decoder products, such as VideoCD players. As a consequence, any political or economic instability in such countries could significantly reduce demand for products from certain of the Company's major customers. The Company has made a significant investment in additional foundry capacity in Taiwan and is subject to the risk of political instability in Taiwan, including but not limited to the potential for conflict between Taiwan and the People's Republic of China. The Company manufactures and sells product to customers in Korea and is subject to the risk of political instability in Korea, including the potential for conflict between North and South Korea. In addition, the Company sells certain of its products in international markets and buys certain products from its foundries in currencies other than the U.S. dollar and as a result, currency fluctuations could have a material adverse effect on the Company's business and results of operations. With respect to international sales that are denominated in U.S. dollars, increases in the value of the U.S. dollar relative to foreign currencies can increase the effective price of and reduce demand for the Company's products relative to competitive products priced in the local currency. The United States has considered trade sanctions against Japan and has had disputes with China relating to trade and human rights issues. If trade sanctions were imposed, Japan or China could enact trade sanctions in response. Because a number of the Company's current and prospective customers and suppliers are located in Japan and China, trade sanctions, if imposed, could have a material adverse effect on C-Cube's business and results of operations. Similarly, protectionist trade legislation in either the United States or foreign countries could have a material adverse effect on the Company's ability to manufacture or to sell its products in foreign markets.

To: Vincent Le who wrote (24491)	10/28/1997 11:03:00 AM
From: Rick Kiray	Read Replies (1) \| Respond to of 50808

I think CUBE has many opportunities, and HDTV is one with lots of uncertainy. No one knows how fast consumers will adopt it, or if the broadcastors will use it. CUBE probably will get lots of revenue from encoders in consumer goods (DVD-RAM, digital camcorders, etc.) before it get significant revenue from HDTV. Both are years away. Most investors don't think that far ahead. Up to now VCD has been CUBE's biggest market, so short term investors have been using it as the primary guide to CUBE. With-in the next six months we will hopefully see this market grow, but hopefully DVD, digital set-top boxes, encoders, and DiviCom revenue will grow even faster. CUBE's future has lots of products, but unfortunately many momemtum players and shorts think that "CUBE is a one product company". Right David? Rick