To: Helios who wrote (31601 ) 3/30/1998 12:06:00 AM From: CPAMarty Read Replies (1) | Respond to of 50808
from CUBE's 10-K In the video networking system business, DiviCom competes with vertically integrated system suppliers including General Instrument, Scientific Atlanta, NDS, SGS-Thomson and Philips, as well as more specialized suppliers including the DMV division of News Corp., Nuko and the TV/Com subsidiary of Hyundai. Many of these competitors have, or have access to, substantially greater financial resources than does DiviCom. DiviCom believes that it competes favorably based on its expertise and focus in the area of digital video network systems and its constituent components such as digital video compression, digital network and transmission technology. In addition, DiviCom possesses the practical knowledge and experience required to design, manufacture, integrate and support such systems in real-world deployments. Several of these competitors, including General Instruments, Scientific Atlanta, TV/Com, DMV (formerly NTL), Philips and Wegener have been established in the analog technology market for many years. Others, such as Nuko, Tadiran/Scopus and Tiernan, have come into the market in recent years as the early stages of digital technology emerged. The only competitor to emerge early with an MPEG-2 product with a discrete design was DMV. DiviCom and C-Cube's consumer settop box technology licensees compete with traditional cable industry settop box suppliers, such as General Instruments and Scientific Atlanta, as well as consumer electronics companies (which may choose to license DiviCom technology or compete with DiviCom and its licensees) such as Thomson Consumer Electronics, Philips, Sony, MEC, Mitsubishi, Zenith, Hyundai and Samsung. DiviCom competes by providing software and system designs that provide more advanced features more economically than are typically available elsewhere. DiviCom expects that successful companies in this industry will be those that provide the deployable, affordable end-to-end solutions that support open-standards and industry-accepted architectures.* Delivering a low-cost digital settop decoder or other highly integrated solution as well as the broadcast video, audio and data systems, is a key factor for successful participation in the digital television market.*