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

To: BillyG who wrote (82)	12/10/1997 10:35:00 AM
From: Maya	Read Replies (1) \| Respond to of 324

Following the DJ news, NMBS's EPS is being increased from .$65 to $.85 according to one analyst. This is mainly due to underestimation of the DVD demand. DVD picking up steam! Nimbus CD, Analysts Say Early DVD Sales Are Better Than Expected 12/09/97 Dow Jones Online News (Copyright (c) 1997, Dow Jones & Company, Inc.) RICHMOND, Va. -(Dow Jones)- Nimbus CD International Inc. and industry analysts Tuesday said early sales of digital versatile disc, or DVD , players and titles are well above earlier estimates. That's good news for Nimbus, which took a gamble on DVD at a time when many were holding back because of uncertainty about the new technology's potential. According to a research report from Davenport & Co., the Charlottesville, Va.-based maker of audio compact discs, CD-ROMs and DVDs is poised for strong growth in what the brokerage firm says is the next hot consumer product. Nimbus Chief Financial Officer Steven Minkel said the company now estimates total DVD sales by year's end of 600,000 units - compared with an estimate last summer of 400,000. And the number of titles available on DVD at year end will be 750, he said, compared with an estimate last summer of 500. Kenneth Gassman Jr., a retail analyst at Davenport, said the high-end consumer electronics retailers he has surveyed describe DVD as their "single strongest product category." "It's really amazing," he said. " DVD player and disc sales are exceeding everyone's expectations. The players are easily outselling VCRs and the software is selling well also." Gassman added that while the strong numbers early in the Christmas shopping season are impressive, this isn't DVD 's breakout year. "Next year will be," he predicted. Minkel agreed. "The bigger question is what will happen next year," he said. "While these numbers are impressive, and we think they're a sign of things to come, next year will be when we'll see the big sales growth." N. Douglas Adams, a Davenport analyst who specifically follows Nimbus, said in a new research paper that DVD 's "technology rollout should begin in earnest in 1998 and last for several years. Combined with an established and well-run manufacturing capability in compact discs (CDs), Nimbus's strategic positioning for the DVD revolution appears to be excellent." Fiscal 1998, which will end March 31, should be a record year for Nimbus, with 50% earnings growth, he said. The company posted fiscal 1997 earnings - before a charge - of $12.9 million, or 56 cents a share. Adams attributed the projected earnings growth to efficiencies gained from consolidating manufacturing operations earlier this year as well as to modest but improved DVD sales. The only speed bump he sees is DIVX, a nonstandard derivative of DVD set to be available starting early in 1998. One attraction of the technology is that its serialized discs and special player allow for pay-per-use discs. While that could help the rental industry, it could cause problems for DVD . "Market uncertainty created by the introduction of this product could slow early consumer acceptance of DVD ," Adams said. Today DVD is but a small part of Nimbus's operations. According to Financial Chief Minkel, 65% of the company's output is CD-ROMs, 33% audio CDs and just 1% or 2% DVDs. But Minkel said he sees "both the pie and DVD 's share of the pie growing over the next year." Still, despite that - and despite the strong early sales of DVD players and discs - the company isn't prepared to issue any projections as to how they might affect Nimbus's near-term earnings, he said. Minkel said Wall Street still has a lot of DVD skeptics. "A lot of people are worried that DVD might be the next laserdisc," he said. Those investors are a little behind the curve, he added: They don't recognize that DVD is a technology that's starting to take root and receive wide - albeit early - consumer acceptance. Copyright (c) 1997 Dow Jones & Company, Inc. All Rights Reserved.

To: BillyG who wrote (82)	12/10/1997 11:10:00 AM
From: Maya	Read Replies (1) \| Respond to of 324

Does Cube has any share in this? Nextlevel is its customer. Wednesday December 10, 10:48 am Eastern Time Company Press Release SOURCE: NextLevel Systems, Inc. NextLevel Systems, Inc. and nCUBE Demonstrate Their Integrated Near-Video- On-Demand Solution on NextLevel's Advanced Analog CFT 2200 Platform With NextLevel/nCUBE NVOD, Operators Can Offer Subscribers On-Demand Movies and Other Pay-Per-View Events with the Viewing Control Previously Limited To Using a Videotape or Full VOD ANAHEIM, Calif., Dec. 10 /PRNewswire/ -- NextLevel Systems, Inc. (NYSE: NLV - news) and nCUBE Product Communications demonstrated their integrated solution for Near-Video-On-Demand (NVOD) services at the Western Cable Television Association (WCTA) Show. By integrating NextLevel's CFT 2200 advanced analog network system with nCUBE servers, this alliance enables cable operators to offer their subscribers on-demand movie rentals and other pay- per-view (PPV) events with the viewing control (such as pause, rewind and fast-forward) previously available only with a videotape or a full Video-on- Demand (VOD) solution. This integrated NVOD solution allows cable customers to select their own convenient viewing times rather than rely on a PPV movie's pre-determined start time. NextLevel and nCUBE demonstrated how their integrated NVOD solution allows cable operators to offer the same programming on different channels at staggered starting times, typically in 15-minute increments. The nCUBE video server utilizes Oracle Corporation [Nasdaq:ORCL - news]'s Oracle Video Server(TM) to store, schedule and deliver the video content. Using NextLevel's CFT 2200 advanced analog set-top terminal, the subscriber purchases the programming directly from an on-screen program guide and chooses a convenient viewing time over a 24-hour period. When the programming is scheduled to begin, the CFT 2200 automatically descrambles the picture and tunes to the channel that is transmitting the programming -- all transparent to the subscriber. At any point during the program, the subscriber can choose to pause, fast-forward or rewind the programming. ''Cable subscribers are excited about the ability to order movies from the comfort of their own home at a time that's most convenient for them, while also maintaining VCR-like control,'' said Jim Spare, Senior Product Manager of NextLevel Broadband Networks Group's Advanced Networks Systems (ANS) business unit. ''The NextLevel/nCUBE NVOD solution can clearly differentiate operators from their competition, allowing them to offer a leading-edge service to their customers and create additional revenue for themselves.'' ''We are pleased to partner with NextLevel and demonstrate the benefits of our integrated NVOD solution to the worldwide cable industry,'' said George Palmer, Vice President of Marketing for nCUBE. ''nCUBE's scalable video servers, integrated with NextLevel's set-top terminals, allow cable operators to offer advanced NVOD services while utilizing their existing analog infrastructure. This solution provides a lower-cost, intermediate step to digital video-on-demand (VOD). The same nCUBE video server will also fully support digital VOD, even while running the existing analog NVOD at the same time.'' The nCUBE video server is the only proven video system that can deliver up to 20,000 MPEG video streams. nCUBE has completed worldwide major interactive video trials of the system with successful results. The video system employs a highly developed hypercube architecture that meets the high data rate I/O requirements of interactive video applications. nCUBE servers support the major network architectures of the video market, including ATM OC-3, 10 or 100BaseT Ethernet, and HFC. Near-Video-On-Demand is one of the new applications now available on NextLevel's advanced analog CFT 2200 platform. Together with Internet access, Caller ID, and Visual VoiceMail, these services can add an estimated incremental $6-$7 per month per subscriber to operators' revenue streams, enabling them to double their revenue potential. nCUBE video servers incorporate Oracle Corporation's Oracle Video Server software. This end-to-end software solution enables customers to store, manage and deliver full-motion, full-screen video and high fidelity audio to PCs, network computers, workstations and set-top boxes over a variety of networks. Founded in 1983, nCUBE is a privately held company with corporate headquarters in Foster City, California. nCUBE specializes in broadcast- quality video delivery systems leading in performance, scalability and cost- effectiveness. Its video servers have successfully participated in the world's leading video-on-demand trials and deployments. As an Oracle Business Alliance Partner, nCUBE is solidly positioned to meet the demands of a rapidly expanding interactive multimedia marketplace. For more information about nCUBE, please call 800-654-2823. nCUBE's World Wide Web address is (URL) ncube.com. NextLevel Systems, Inc. (NYSE: NLV - news) is a leading worldwide supplier of systems and components for high-performance communications networks delivering video, voice and Internet/data services. Created in a three-way split of General Instrument Corporation, NextLevel Systems comprises three businesses that are leaders in distinct global growth markets: the Broadband Networks Group, based in Hatboro, Pa.; the Satellite Data Networks business, based in San Diego, Calif.; and Next Level Communications, based in Rohnert Park, Calif. NextLevel Systems posted revenues of $1.8 billion in 1996 and employs more than 8,300 people worldwide. SOURCE: NextLevel Systems, Inc.