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To: DiViT who wrote (27683)	1/7/1998 2:53:00 PM
From: Ian deSouza	Respond to of 50808

Thanks David. That cleared things up. FredE, got any more of those disks? Just for research purposes ...

To: DiViT who wrote (27683)	1/7/1998 3:08:00 PM
From: BillyG	Read Replies (1) \| Respond to of 50808

Chromatic is having financial trouble with its "Swiss Army Knife" approach to media processors?.................. LG manufactures Mpact, but it uses CUBE in its DVD players (Mpact is not designed for standalone products). techweb.cmp.com Chromatic realigns executives to address bottom line By Anthony Cataldo SUNNYVALE, Calif. -- Chromatic Research Inc., considered one of the pioneers in media processors, has realigned its executive management team in an effort bring the company into the black. Meanwhile, Chromatic continues to look for ways to persuade PC manufacturers to buy into using its "Swiss Army knife" co-processor to handle multimedia applications. Under the new management structure, former president Wes Patterson is now chief executive officer, while David Holt will take on the presidency in addition to his previous chief operating officer role. A spokesman said Holt will take over the day-to-day operations of the company, while Patterson will focus on building relations with investors and exploring opportunities to bring the company public. "As you can expect, the company is past the startup stage and into the revenue-generating stage. It's time to start paying close attention to finances so we can look forward to other financial arrangements," the spokesman said. Sources close to the company said the move was in response to Chromatic's need to address its financial state, as it struggles to sell OEMs on the idea of using the Mpact chip--which is manufactured by Toshiba, LG Semicon and, soon, SGS-Thomson-and its Mediaware software for a variety of multimedia applications. While it works out this strategy, Chromatic will have to pay closer attention to the bottom line if it hopes to eventually go public. The company garners its revenues through sales of its Mediaware software, while revenues of chip sales go to its manufacturing partners. The first-generation Mpact chip has been designed into DVD systems from Compaq, Gateway 2000 and Micron Electronics; but, so far, sales of those systems have been sporadic. The company changed its strategy somewhat in 1997, when it decided to release software in modules for its new Mpact 2 chip. The first is expected to be released later this month and will target 3-D and DVD applications. However, sources close to the company said that Chromatic will likely derive less revenue from these software modules than it would from the release of full software package. In addition, sources said Chromatic is spending a significant amount of money on a highly skilled engineers and researchers. The company has more than 250 employees. "There are a lot of PhDs that Chromatic has to support," said one source.