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

To: Marc Phelan who wrote (1264)	6/18/1998 2:38:00 AM
From: Blue Eagle	Read Replies (1) \| Respond to of 1486

Marc, The license fee varies from customer to customer and companies usually do not disclose this information to the public. However, if Intel claims that the cost of Software DVD solution is only 10% of the cost of Hardware DVD solution (~$100), the license fee should be closer to $10 per system rather than the $1 which I used as an example. My point is that even a license fee as little as $1 per system can make a significant difference to Zoran's bottom line. If you look at the Consolidated Statements of Operation, you will see the following: "Product sales consist of revenues from sales of the Company's integrated circuits. Software, licensing and development revenue consists of revenue from license and royalty agreements, primarily for audio and video decoder software, that generally provide for the license of software for a specified period of time for either a single fee or a fee based on the number of units distributed by the licensee." Revenue generated from software, licensing and development increased from 20% of total revenue in 1996 to 27% in 1997. Since this stock did not go up today with the rest of the market, lets hope the street will find it a bargain tomorrow. BE