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

To: John Rieman who wrote (24510)	10/28/1997 4:03:00 PM
From: DiViT	Respond to of 50808

DVS bought ViComp for MPEG silicon, but that was before the VCD price war... If you do Digital video you have to say you plan to do DVD... ------------------------- THIS WEEK'S NEWS DIGITAL VIDEO SYSTEMS PLANS DVD ÿ 10/27/97 Consumer Electronics Warren Publishing, Inc. (Copyright 1997 by Warren Publishing, Inc.) ÿ Digital Video Systems (DVS), which made mark selling VideoCD in Far East, is setting sights on DVD with plans for both player and DVD-ROM drive in U.S. by early 1998. DVS plans to introduce DVD-ROM drive at Comdex with equivalent CD-ROM speed "somewhat north" of 24x, with first OEM deliveries planned by year-end, COO Thomas Parkinson said, adding that aftermarket unit will be "competitive" with current product being sold at $379. Players, which will contain AC-3 audio and be sold under "Pure Digital" brand in U.S., will be priced at $1,000. Separate 900-w solid state linear amplifier with 3-D sound capability also will be sold, Parkinson said, and player-amplifier combo is planned. Most product will be built in 200,000-sq.-ft. factory in China's Guangdong Province that DVS opened earlier this year in joint venture with Panyu Tian Le Electrical Mfg. (TVD Aug 18 p15). Factory currently is producing VideoCD players on 2 lines, but will add DVD by early 1998, Parkinson said. Annual capacity is 600,000 units with investment of $8 million -- $3.9 million in fixed assets and $4 million in working capital, according to joint venture agreement filed with SEC. In adding factory, DVS has moved VideoCD and video engine production from plant in Taipei, Taiwan, he said. With manufacturing base in China, 70% of DVS's DVD sales will come in Far East, where it will sell players under own brand, Parkinson said. Remaining 30% will be in U.S. on OEM basis and via specialty retail. In VideoCD, DVS subsidiary ViComp Technology continues work on proprietary MPEG -1 IC, although Parkinson said that with chip prices falling to $11, new IC "isn't as compelling for us." DVS purchased ViComp in Oct. 1996.