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

To: CPAMarty who wrote (30062)	2/28/1998 2:52:00 PM
From: John Rieman	Respond to of 50808

Mpegged part II............................................ Subj: BancAmerica Robertson Stephens Technology conference (2) By: Mpegged Date: Feb 28 1998 10:09 A.M PST Reply To: Msg. 1178 by Mpegged THE COMPANY: C-Cube is a leader in the fast growing market for integrated circuits that implement MPEG standards for the compression and decompression of digital images and video. C-Cube is a market leader in the shipments of MPEG-1 decoders and MPEG-2 encoders as well as among the leaders in shipments of MPEG-2 decoders. Systems using C-Cube products include Video-CD machines, video encoding stations, PC Video decode boards, digital satellite set-top boxes and digital head-end transmission systems among multiple other applications. INVESTMENT THESIS: C-Cube has staked out a leading position in the emerging market for digital video compression and decompression ICs. As these markets develop fully and the company executes its product plans successfully, we believe C-Cube has an opportunity to continue its rapid revenue and earrings growth. Our investment thesis is based on the following: 1. Digital Video, in our view, is a powerful value proposition. Although digital video is still in it's infancy, we believe that the IC opportunities in this market have huge potential. C-Cube is experiencing solid and sustained growth by servicing select target markets within the digital video industry. 2. C-Cube is currently growing very rapidly as it participates in the booming market for Video-CD products in Asia. We believe that the company is best positioned to continue to service this very large, but underserved market. 3. Two new digital video markets are rapidly taking shape -- satellite set-top boxes and Digital Video Disk (DVD) players. These markets could emerge as important contributors to revenue growth during 1997. 4. We believe C-Cube is run by a very capable and forward looking management team, which we view as instrumental in leading the company to execute toward our expectations. INVESTMENT RISK: Among the risks in the potential for increased competition in the companies current markets, which could lead to price pressures. Also, the consumer electronics markets exhibit rapid product transitions and can have very short product life cycles. Many of the company's new market opportunities can feature seasonality or ramp-up cycles that could change the dynamics from time to time. BancAmerica Robertson Stephens maintains a market in the shares of C-Cube Microsystems Inc. and has been an underwriting manager or comanager or has privately places securities for C-Cube Microsystems Inc. within the past three years. For additional information, call your Bancamerica Robertson Stephens representative at (415) 781-9700