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

To: Bob Strickland who wrote (29701)	2/19/1998 6:08:00 PM
From: JPM	Read Replies (1) \| Respond to of 50808

DiviCom News... Thursday February 19, 5:35 pm Eastern Time Company Press Release ComStream and DiviCom to Collaborate On Multimedia Delivery for Satellite Broadcasters SAN DIEGO--(BUSINESS WIRE)--Feb. 19, 1998--ComStream, an international provider of digital transmission solutions for data, audio, and video applications, today announced it has signed a Memorandum of Understanding with DiviCom Inc., a leading provider of digital multimedia networking solutions. Under the agreement, the two companies will jointly market ComStream's MediaCast(TM) PC/server receiver card, and DiviCom's DiviCast headend system. Used together, these products will enable satellite network operators to transmit data, audio and video at speeds of up to 45Mbps. This high-speed pipeline can transmit data files, web pages, new push and streaming video broadcasts, and other multimedia applications. Interoperability tests have been conducted to ensure a flexible, reliable end-to-end broadcast solution. ''Joining forces with DiviCom enables us to offer the marketplace an end-to-end, DVB-compliant solution for delivering multimedia applications,'' said Alex Robertson, General Manager for ComStream's Broadband Products division. ''More importantly, we've incorporated sophisticated technology advances that maximize bandwidth utilization and help operators minimize transmission costs.'' Robertson went on to note that both companies embrace open architecturer and industry standards including MPEG-2 and DVB, thereby ensuring a non-proprietary platform that will support future industry developments. ''The close technical collaboration between DiviCom and ComStream will ensure a powerful easy-to-use system with seamless integration,'' said Robertson. ''ComStream has long been recognized for their expertise in satellite receiver technology,'' said Tom Lookabaugh, President of DiviCom. ''By working together, we can simplify the sales process for the customer and facilitate integration of the equipment at their site.'' How the System Works The combined ComStream/DiviCom system allows satellite service providers and corporate customers to build private datacasting networks that deliver distance learning, streaming video, internet web pages, software and other large data files in either multicast (point to multipoint) or unicast (point to point) mode. The DiviCast system takes IP data from an ethernet network, and encapsulates it into an MPEG-2 transport stream at speeds of up to 15 MBps. The DiviCast software controller then routes the stream to a DiviCom multiplexer (if multiple services are being provided), and on through to the satellite modem and upconverter to the satellite. The DiviCast software also allows the operator to control the flow of information to receiver cards, and interface to subscriber management, billing, and scheduling systems. The satellite signal is then amplified and downconverted from the Ku-band RF frequency to L-band using a standard LNB. The MediaCast PC receiver card then demodulates and demultiplexes up to 32 data streams at a time and delivers the appropriate digital bit stream to the PCI bus of the computer. DiviCom develops and integrates products that make digital video networking possible. Products include audio/video encoding and decoding systems, and integration consulting and implementation services. Based on the MPEG-2, DVB and ATSC international standards, DiviCom's products enable digital video broadcasting over a variety of networks including satellite, wireless, fiber, and cable. DiviCom is a wholly owned subsidiary of C-Cube Microsystems Inc. (NASDAQ:CUBE - news), and both companies are based in Milpitas, Calif. C-Cube is the leading provider of digital video silicon solutions for the communications, consumer electronics and convergence markets. DiviCom can be reached by phone at 408/490-6700 or by fax at 408/490-6705. Website address: www.divi.com. ComStream is an international provider of digital transmission solutions for voice, data, audio, and video applications for the satellite industry. Products include satellite modems and earth stations, broadcast systems for private business and public networks, VSATs, and the MediaCast satellite PC/server receiver card. With offices in the United States, Canada, Mexico, Colombia, Indonesia, China, Russia, and the United Kingdom, ComStream is a wholly owned subsidiary of Spar Aerospace Limited. Website address: www.comstream.com. Spar is a leading Canadian advanced technology company with businesses in the space, communications, aviation services, and software industries. It is listed on the Toronto and Montreal stock exchanges. Stock symbol: SPZ. Website address: www.spar.ca. Contact: ComStream Gwen Carlson, 619/657-5780 Holly Bertz, 619/657-5327 www.comstream.com or DiviCom Public Relations Anne Hohenberger, 408/490-6688

To: Bob Strickland who wrote (29701)	2/19/1998 6:14:00 PM
From: JPM	Respond to of 50808

Info on Spar Elect... which owns ComStream SPAR ANNOUNCES THIRD QUARTER RESULTS November 6, 1997 TORONTO, Ont. -- Spar Aerospace today announced that, as a result of significantly lower revenues at subsidiary company ComStream's Satellite Global Access Division, consolidated third quarter 1997 results show a loss of $7.9 million on revenues of $90.4 million, compared to a $3.1 million loss before restructuring costs on revenues of $110.7 million in the same quarter of last year. For the nine-month period ended September 30, 1997, a net loss of $3.5 million was recorded on revenues of $295.0 million, compared to an $11.4 million net loss before restructuring costs on revenues of $313.2 million for the 1996 nine-month period. Overall, the company's other businesses' quarterly operating profits before restructuring were comparable with last year's, although they are slightly lower on a year-to-date basis. ComStream posted an operating loss of $8.1 million in the third quarter of 1997 on revenues of $25.5 million, compared to an operating profit in the third quarter of 1996 of $1.6 million on revenues of $43.7 million. An operating loss of $10.3 million for the first nine months of 1997 was recorded on revenues of $95.9 million, compared to a 1996 nine-month operating loss of $6.2 million on revenues of $105.6 million. ComStream's Satellite Global Access Division's lower third quarter revenues resulted from the low order backlog that existed going into the quarter. However, it has entered the fourth quarter with a significantly improved backlog, most of which will be recorded as revenue over the next 18 months. In addition, the Satellite Products Division enjoyed a strong third quarter, especially in its earth stations and modems segment. Colin D. Watson, President and Chief Executive Officer, Spar, explained that: "Having completed an extensive due diligence process at ComStream, and having examined several offers to purchase, we have decided that our best course of action is to continue to operate the company ourselves. "As such, management has now made the decision to implement a significant cost reduction program to bring ComStream's costs into line with current and projected revenue levels," stated Mr. Watson. "We are reducing staff by approximately 20%, and as a result we expect ComStream to return to profitability in early 1998." Spar Space Systems' operating income was $2.1 million for the third quarter of 1997 on revenues of $46.8 million, compared to $2.6 million during the third quarter of 1996 on revenues of $52 million. Operating income for the first nine months of 1997 totalled $8.1 million on revenues of $143.1 million, compared to $10.4 million on revenues of $164.3 million during the first nine months of 1996. Space business backlog remains strong, with work now underway on the Special Purpose Dexterous Manipulator for the International Space Station. Aviation Services' third quarter 1997 revenue increased 30% to $11.4 million from $7.7 million the previous year. For the nine months ended September 30, 1997, revenues were $36.7 million, up from $23.5 million for the same 1996 period. Operating income for the third quarter increased to $1.7 million from $1.6 million in the third quarter of 1996. Mr. Watson pointed out that third quarter 1996 operating income totals included certain one-time favourable cost adjustments. Nine month 1997 operating income was $5.0 million, up from $3.4 million in 1996. Software business subsidiary Prior Data Sciences' operating income increased in the third quarter of 1997 to $0.5 million on revenues of $6.6 million, compared to operating income of $0.3 million on revenues of $7.3 million in the third quarter of 1996. For the first nine months of 1997, operating income increased to $1.6 million from $1.2 million on revenues of $19.2 million and $19.9 million, respectively. Prior's results reflect both cost control and margin improvements. During the quarter, Spar announced it had reached an agreement to sell its Applied Systems business to DRS Technologies, Inc. of Parsippany, New Jersey, for approximately $40 million cash. The transaction, which includes all of the assets (except cash on hand), liabilities and all contracts related to the Applied Systems business, closed on October 30. It will result in a fourth quarter gain, net of tax, of approximately $20 million. Accordingly, the Applied Systems business is reported as a discontinued operation in the third quarter and year-to-date results for 1997 and comparable periods. Commenting on the company's considerable cash on hand, Mr. Watson said: "We are investigating a number of acquisition opportunities that underscore our strategic priority of simplifying Spar's business and augmenting our core divisions." Mr. Watson noted that the company has reduced corporate costs significantly, from $4 million in the third quarter of 1996 to $3 million in the third quarter of this year. Following today's board of directors meeting, Earl H. Orser, Chairman, announced that Frederick H. Telmer has been elected to the board. Mr. Telmer is Chairman of Stelco Inc., Hamilton Ontario. He also is Chairman of mining corporation Boliden Limited, which recently moved its headquarters from Sweden to Toronto, and he is a member of the board of CT Financial Services Inc., of Toronto. He is the Chairman and founding director of the Japan Society and Vice Chairman of the Institute for Work and Health. Spar is a leading Canadian advanced technology company with businesses in the space, communications, aviation services, and software industries. Operations are located in North America, Europe and the Pacific Rim, and nearly 70% of revenues are derived outside Canada. It is listed on the Toronto and Montreal stock exchanges. Stock symbol: SPZ. Website address: www.spar.ca. For more information: Deborah Allan (416) 682-7619 dallan@spar.ca