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

To: J Fieb who wrote (39345)	3/19/1999 3:31:00 PM
From: SC	Respond to of 50808

From Microsoft Investor, advisor fyi alerts: On 03/17/99: It was reported that institutional holdings of CUBE have increased by 5% or more. This data is generally updated in Investor monthly. Anyone has more information on that?

To: J Fieb who wrote (39345)	3/19/1999 5:08:00 PM
From: DiViT	Respond to of 50808

Part 2............................................ The rating is buttressed by C-Cube's current leadership position in the market served by Divicom, encompassing broadcast quality digital video encoders, multiplexers, and other tools for digital video broadcasting, for which a 30% CAGR is expected. The 1996 Divicom acquisition broadened C-Cube's revenue sources, reducing the dependence on the Asian markets. Total revenues derived from the company's communication products (including both Divicom and portions of C-Cube's semiconductor business) are expected to increase from 55% in 1998 to 70% by 2001. However, much of C-Cube's anticipated revenue expansion is dependent on its current advantages in nascent technologies such as digital cable, xDSL (emerging digital subscriber line), and consumer-based digital encoding. The pace of adoption of any of these technologies is unclear. Additionally, the Divicom business is operated as a wholly-owned subsidiary. With the percentage of revenues realized through Divicom, currently 40%, expected to increase significantly by 2001, the structural subordination of the convertibles to a portion of the revenue base should be noted. As one of the original collaborators on the MPEG (Moving Picture Experts Group) specification, C-Cube has distinguished itself in digital video compression and decompression, leveraging this expertise to become the leading supplier of encoders to the professional market. As general computer processing power continues to increase, C-Cube's edge in digital video encoding could be supplanted by software-based solutions, as has already become common in computer-based digital video decoding. Though software-based video encoding solutions will be available by late 1999, it is unlikely that they will be able to perform as well as C-Cube's inexpensive dedicated hardware solutions until the next generation of processors. C-Cube was the fourth largest provider of DVD integrated circuits in 1997, and should continue to increase market share as its solutions are increasingly adopted by OEMs that lack the ability to produce their own chips, such as computer add-in board manufacturers and consumer electronics manufacturers. While C-Cube has maintained a meaningful technology lead