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Technology Stocks : General Instrument Corp.'98 (GIC) -- Ignore unavailable to you. Want to Upgrade?

To: Yogi - Paul who wrote (385)	7/29/1998 5:17:00 PM
From: BillyG	Read Replies (1) \| Respond to of 615

I listened to the GIC conference call, and I have the following brief notes: * installed 80 digital headends for the Q; over 600 total * goal of 1.8M digital settops by the end of 1998. Going better than expected. * re: the tax-free spinoff of NLC -- will make an additional $50M equity investment in NLC and do an IPO. But, they will leave other alternatives open, including an outright sale in the future. * market value of Broadcom investment is $140M * Private investments in Wink Communications, WorldGate, Telesoft, and Music Choice * TCI represented about 65% of GIC's digital settop shipments. Percentage should not change in the next few Qs. * Headends -- GIC has about 45% of addressable mkt, about 20% of RF headend market, and over 90% of digital headend mkt. * Cable modems -- Everyone is waiting on a real MCNS modem, and the numbers will kick up in 1999. Therefore, current market share is not that important. A MCNS modem is being built in to the DCT-5000 settop. * Sold 1.6M digital & analog settops (in Q?). Number of analog units is declining, but it will pick up when the international market takes off again. * Status of Sony negotitions -- Sony transaction is not complete. Scope of transaction has not changed. Still working on a joint development agreement related to home networking an "other projects." * Settops -- Softness in the Brazilian market. Pickup in Argentina/Venezuela. Strong in U.K. and Spain. * 2-3 "significant" customers are waiting for the availability of DCT-2000 before they launch. * Electronic Program Guide questions. Capabilities not limited by the settops themselves. * Settop add-ons in about two years. "Other functionality." Sony? * Discussion of WebTV. WebTV application software may be downloaded to the DCT-5000 and run from this settop. * "New business opportunities coming to GI" -- cable telephony and other unnamed opportunities. DCT-5000+. * Discussion of smartcard-type access devices for settops. Somewhat different from the devices used in satellite systems. * NLC estimates -- 1998 sales should be $40-50M. These numbers are "already in the que." (i.e., firm orders). * Internet access through settops -- Working with Oracle NC and with MSFT. They like Oracle NC. Talking and working with others. Some of this is being led by GIC's cable MSO partners/customers. Issues include how much of the internet access is done over the TV vs. done on the PC. Different players fit into these two paradigms. Both are viable. * 50/50 split between interest in (and sales of?) DCT-2000 and DCT-5000.