Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John F. Dowd who wrote (389)	7/30/1998 7:50:00 AM
From: John F. Dowd	Read Replies (1) \| Respond to of 615

To All: Notes on Conference Call posted over at Yahoo- what's wrong with these numbers: 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. JFD