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

To: ftmp who wrote (38504)	1/22/1999 3:54:00 PM
From: Gerald Thomas	Respond to of 50808

C-Cube Down -2: Shrs Slide Despite Hitting 4Q Earns Target 326 Words 2797 Characters 01/22/99 15:03 Dow Jones News Service (Copyright (c) 1999, Dow Jones & Company, Inc.) * NEW YORK (Dow Jones)--C-Cube Microsystems Inc. (CUBE) dropped 20% Friday on news that some analysts readjusted earnings expectations, despite the company's announcement that it met fourth-quarter earnings forecasts. * C-Cube reported Thursday that earnings for the fourth quarter were in line with First Call Corp.'s analysts' consensus estimate of 31 cents a share. * In a research note, Glavin maintained his buy rating on C-Cube but decreased his revenue estimate for 1999 to $410 million from $424 * million following a conference call with C-Cube officers. Glavin said in * an interview that he anticipates C-Cube's earnings for the first half of 1999 to fall below expectations primarily because of pricing pressure and increased expenses. * C-Cube Chief Financial Officer Walt Walczykowski said he found the stock drop confusing, adding, "We hit all our targets, we expect continued growth in earnings and profits this year and are confident that we will meet expectations for 1999." * Glavin said C-Cube's acquisition of TV/Com International, which was announced Thursday, though part of a long-term strategy, is "slightly dilutive ... requiring additional R&D investment for revenues that won't kick in during 1999." Details of the deal haven't been released, but Glavin estimates the deal is worth $4 million. * Walczykowski downplayed the impact of the TV/Com deal on C-Cube's earnings, saying no significant earnings guidance adjustment was warranted. * Milpitas, Calif., based C-Cube makes and markets digital video compression chips and software. * Shares of C-Cube recently changed hands at 23 3/8, down 6 5/16, or 21.3%, on Nasdaq volume of nearly 2.9 million shares, compared with average daily volume of 846,700. - Marcelo Prince; 201-983-5393 ...

To: ftmp who wrote (38504)	1/22/1999 4:01:00 PM
From: JEFF K	Read Replies (1) \| Respond to of 50808

Just heard from my broker he read an update from Credit Suisse Fisrt Boston to me. First, they maintained a buy rating on the company. Second, they lowered the estimated revenues from 424m to 410m. Third, they cited expense pressures related to continued need from R & D as making it difficult for Cube to meet expectations in the 1st & 2nd Qtr's, but expected the 3rd & 4th Qtr's to be positive. From Cube's CFO; the new aquisition cost is about 4m and they do not expect it to generate revenue's till 2000; He " is at a loss about the stock's reaction being that the company met expectations in Qtr 4 98 & expect to meet expectations in 99".