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

To: Stoctrash who wrote (33763)	6/11/1998 3:52:00 PM
From: .com	Respond to of 50808

Does the CREAF news have much of an impact on CUBE? CREATIVE TECHNOLOGY LTD. (CREAF) 13 3/16 -2 15/16. Lower prices in the low-end and mid-range 2D/3D graphics market due to an oversupply of graphic products are expected to drag down revenues and gross margin for this multimedia chip maker. Earlier today the company warned that Q4 gross margin will come in in the mid-20% area, much lower than the expected 30% margin that had been anticipated, while revenue is expected to fall about 10% from the year-ago period. Obviously, this will have a negative impact on earnings as CREAF was projected to earn $0.39 a share in the final quarter of 1998, already well below year-ago net of $0.55 on revenues of $280.07 million. Results are also being affected by the decision to delay the shipment of its Sound Blaster Live!, continued price reductions for older audio products and the Asian crisis. News of the revenue and gross margin shortfall has hit the stock hard, although the stock has been trading in a downward fashion ever since the Asian economies began to unravel. Still, the earnings shortfall has led the stock to new lows as few technology driven companies are able to insulate themselves from the collapse in Asia.