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 : ZORAN jpeg/dvd moguls -- Ignore unavailable to you. Want to Upgrade?

To: B.K. Ohneis who wrote (1177)	3/27/1998 6:59:00 PM
From: j kong	Respond to of 1486

C-Cube has developed 2Real for DVD recording. What wrong with Zoran R&D? Date: Mar 12 '98 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. (As of Mar 12 '98)ÿ ZRAN NASD Last Chg. 14ÿ3/8 -0ÿ1/8 % Chg. -0.86% Day Lo. Day Hi. 14ÿ1/8 14ÿ3/4 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. Hopefully, what Levy estimates is right.

To: B.K. Ohneis who wrote (1177)	3/27/1998 7:16:00 PM
From: John	Read Replies (2) \| Respond to of 1486

All DVD stocks are falling. Just the calm before the storm. My broker has been in touch with Zoran and they are very happy with all their contracts and new products. IMO, the market is waiting to see what DIVX does. Circut City has budgeted $100 million for advertising beginning this Spring, which is great for all DVD. Right now most consumers haven't even heard of DVD, so the exposure will be great. Just be patient, DVD stocks will again have their day and we shall see Zoran at $25-30 by years end. My opinion only!