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

To: let who wrote (26266)	12/7/1997 11:44:00 AM
From: John Rieman	Read Replies (1) \| Respond to of 50808

If Cube wanted to pump up earnings, they could slow R&D spending. If they would spend 13% of revenues for R&D, they would add $.10 per share, per Q. 13% of revenues is a high rate. I don't want them to cut back. R&D is an investment in product up-grades, and future products. Yes earnings and revenues will be up the Q and next. Q2, 1998 should be slightly lower. If ASPs don't drop at a rate greater than 30% during 1998, Q3 and Q4 should be big gainers. If strong VCD chip sales run through March, Q1 is big. If they taper off sooner, just another good Q. Last year, they didn't slow until late April. The Chinese New Year is 10 days earier than last year, on January 28th.