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

To: Alan Edgett who wrote (34348)	7/16/1998 4:23:00 PM
From: John Rieman	Respond to of 50808

I haven't seen it on-line yet, but I believe Don saw it real time on DJ.

To: Alan Edgett who wrote (34348)	7/16/1998 4:24:00 PM
From: Bob Strickland	Read Replies (3) \| Respond to of 50808

C-Cube Reports Revenue and Profits for Second Quarter of 1998 MILPITAS, Calif.--(BUSINESS WIRE)--July 16, 1998--C-Cube Microsystems Inc. (NASDAQ:CUBE), the leading provider of digital video technology, today announced financial results for its second quarter, which ended June 30, 1998. Revenues for the second quarter increased 16.1% to $82.5 million, compared with $71.1 million in the second quarter of 1997. Net income and earnings per share for the second quarter grew 39.0% and 33.3% respectively, to $10.7 million and $0.28 per diluted share from $7.7 million and $0.21 per diluted share in the second quarter of 1997. "This quarter's return of positive quarterly revenue and earnings growth illustrates strong execution in focusing on the communications market,"(a) said Alexandre Balkanski, president and CEO of C-Cube Microsystems. "The majority of our second quarter revenues came from our communications business, which was led by DiviCom, encoder chips and our settop silicon business. The communications and the consumer recordable digital video markets are clearly the largest growth opportunities for us going forward."(a) During the quarter, C-Cube reduced long-term debt by $19.2 million or 22% by repurchasing the Company's 5-7/8% convertible notes on the open market. C-Cube is also pleased to announce a management promotion. Walt Walczykowski, the company's corporate controller, has been promoted to chief financial officer of C-Cube effective July 17, 1998, following the resignation of John Hagedorn. Walczykowski has held the position of corporate controller at C-Cube since 1995, and brings over 22 years of financial experience with him to his new assignment as CFO. Balkanski stated, "We thank John for his efforts at C-Cube and wish him well in his future endeavors." Balkanski added, "Walt and his outstanding organization have been key to our strong asset management and performance. We are enthusiastic about Walt's capabilities in his new role, and are fortunate to have a high caliber finance organization from which to promote internally." Several noteworthy C-Cube announcements made during the quarter include: -- DiviCom was selected by British Digital Broadcasting (BDB) for their U.K. terrestrial television project. BDB represents half of all licensed digital broadcasters in the U.K. -- DiviCom announced a relationship with TIBCO Software Inc. to enable new MPEG-2-based satellite and broadcast services such as webcasting and corporate real-time push applications. -- DiviCom was selected by ULTRACOM to supply equipment for its INTELSAT Earth station to offer broadcast-quality video services. -- DVD design wins were announced with Toshiba, Gateway, Acer and Hitachi. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of market conditions, digital video acceptance and management changes in addition to the risk factors set forth in the Company's Forms 10-K and 10-Q reports. The Company has attempted to identify forward-looking statements in this press release by placing a footnote "(a)" following each sentence containing such statements. About C-Cube Microsystems Inc. C-Cube Microsystems Inc. is the industry leader in the development and delivery of highly integrated digital video silicon solutions that address the consumer electronics, communications and convergence markets. C-Cube is headquartered in Milpitas, with offices in North America, Europe and Asia. Its stock is traded on the Nasdaq National Market under the symbol CUBE. C-Cube can be reached at 408/490-8000 or at www.c-cube.com. About DiviCom Inc. DiviCom develops and integrates products that make digital video networking possible. Products include audio/video encoding, data broadcast solutions, network management systems, consulting and integration services. Based on the MPEG-2, DVB and ATSC international standards, DiviCom's products enable digital video broadcasting over a variety of networks including satellite, wireless, fiber, copper and cable. DiviCom is a wholly owned subsidiary of C-Cube Microsystems Inc. DiviCom can be reached at 408/944-6700 or at www.divi.com.