Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: BillyG who wrote (30063)	2/28/1998 2:50:00 PM
From: John Rieman	Read Replies (2) \| Respond to of 50808

We should invite this Mpegged dude to post here. He's got the conference today!!!!!!!!!!!!!!!!!!!!!!!!!!!! Subj: BancAmerica Robertson Stephens Technology conference (1) By: Mpegged Date: Feb 28 1998 10:09 A.M PST Reply To: Msg. 1173 by CPAMarty From BancAmerica Robertson Stephens analyst Elias Moosa 2/25/98... FY: 1998 Q1: EPS .26 Rev:$88 Q2: EPS .24 Rev:$88 Q3: EPS .26 Rev:$95 Q4: EPS .32 Rev:$105 FY: 1999 Q1: EPS .34 Rev:$108 Q2: EPS .36 Rev:$113 Q3: EPS .36 Rev:$118 Q4: EPS .36 Rev:$123 C-Cube CEO Alex Balkanski (and John Hagerdorn, CFO) presented at the BancAmerica Robertson Stephens Technology conference yesterday. The highlight of the presentation was the increasing focus on C-Cube's fast growing systems subsidiary, Divicom, as a driver for the company's business. Divicom reportedly exceeded $100 million in revenue during 1997, with gross margin in the 50% range and operation margin in the 20% range. Recently C-Cube announced Divicom's fourth generation encoder product, the MV40, which further brightens the systems business, in our view. Management also continued to prepare investors for a slow first half of the year, focusing attention on a potentially stronger second half. The company's Video-CD business (47% of sales in Q4:F97) usually undergoes a seasonally slower period during the first half, after the build for the Chinese New Year in January. As such, we expect the Video-CD business to be flat/down sequentially in Q1 and down sequentially in Q2:F98. We anticipate that this could lead to flat to sequentially down Q1 and Q2 for the whole company, as a result. Growth is expected to resume in the second half as Video-CD and PC-DVD decoder businesses come back to life. Also, we expect continued solid performance from Divicom and C-Cube's other infrastructure businesses during this period.