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: DiViT who wrote (30794)	3/11/1998 10:39:00 PM
From: CPAMarty	Read Replies (1) \| Respond to of 50808

This article was posted on a Zoran thread on the SI board. There is interesting commentary re: Cube vs Zoran by the article author By Brenon Daly, CBS MarketWatch Wed Mar 11 15:38:43 1998 SANTA CLARA, Calif. (CBS.MW) -- Broad market acceptance of digital video this summer, after a year-and-a-half delay, will help chip maker Zoran (ZRAN) nearly double earnings this year, the company's chief executive said Thursday. Levy Gerzberg, head of the Santa Clara, Calif.-based company, said he expected revenue from Zoran's digital video disk (DVD) operation to account for more thanÿ 40 percent of the company's total sales. That compares to 10 percent last year and 30 percent in 1996. "The DVD market is really starting to move," Gerzberg told CBS MarketWatch. Sales of the products for the digital video market -- including DVD drives, cameras, home theater set-ups and other items -- is expected to grow to 103 million unit in 2001 from 25 million in 1998. He backed analysts' projections of earnings of 6 cents per share for the current quarter, adding the range for 1998 of 65 to 75 cents in earnings per share is "not out of reach." The company earned 38 cents per share in 1997. Originally expected to make a splashy debut in late 1996, DVD has been slowed by a number of legal fights and consumer confusion. DVDs are widely expected to replace CDs in the coming years as they can store up to 28 times more information than CDs. Wrestling cube The huge potential of the DVD market has also attracted C-Cube (CUBE), which trades at a lower multiple than Zoran. The market values C-Cube at 18 times earnings and 2.37 times sales during the last four quarters, compared to Zoran's ratio of 45 times earnings and 4.29 times sales. Zoran shares on Thursday closed off 15/16 at 14 15/16 while C-Cube fell 1 1/16 to 19 1/16. Levy said Zoran offers both chip and software solutions for the digital video market, while C-Cube uses only a chip solution. "The combination gives us a lot of flexibility," Levy said. He estimated chips generate about two-thirds of Zoran's total revenue with the remaining sales coming from software. Sealed boxes In an interview, Levy also said he expected the rise of the sub-$1,000 PC to spur Zoran chip sales. "The opportunity stems from the fact that most of the low-cost PCs are sealed boxes," he said, meaning chips can't be added internally to increase functionality. Instead, users who want to be able to watch digital films or edit images from a digital camera on their PC will add on a external peripheral. "Once you don't have to open your PC, it becomes very simple," Levy said. Levy also said he is looking for a boost this year from sales of digital audio chips, which go in speakers used for computers and televisions. They are expected to account for 20 percent of Zoran's sales, twice the level last year. <Picture: [CBS MarketWatch]> <Picture> Brenon Daly is an online reporter for CBS MarketWatch.

To: DiViT who wrote (30794)	3/12/1998 11:41:00 AM
From: Brad Rogers	Read Replies (1) \| Respond to of 50808

David, I too would like the Gateway/Cube press release; Also more Intel-- l. Did we notice that the same day DiviCom announced its AsiaPacific operation, Intel announced its AsiaPacific effort with Hong Kong based Pacific Century Group (which led the successful launch of the first AsiaSat satellite and created StarTV) intended to "explore commercial opportunities to provide digital services in the Asia-Pacific region." Not hard to believe there is a link between this operation and Divi. 2. Understand that this morning Justice Dept. indicated it will not block release of Microsoft's Windows 98 scheduled for May. 3. Does HP ever hit its numbers? Late yesterday Hewlett-Packard's Chairman said excess inventory at competing computer companies will hurt HP's gross profit margins and put pressure on prices for the next several months. Compaq gave HP a good excuse to let people know early this time they won't hit their numbers. HP could save energy by only announcing when they will hit their numbers. Ronon.