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

To: Stoctrash who wrote (39410)	3/24/1999 1:31:00 PM
From: DiViT	Read Replies (2) \| Respond to of 50808

the Company signed a second amendment with TSMC... From the 10k. In the second quarter of 1996, the Company expanded and formalized its relationship with Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) to provide additional wafer production capacity in the years 1996 to 2001. The agreement with TSMC provided that TSMC would produce and ship wafers to C-Cube at specified prices and required C-Cube to make two advance payments totaling $49.0 million. An advance payment of $24.5 million was made in June 1996. In May 1997, the Company amended its agreement with TSMC which resulted in a reduction of the Company's future wafer purchase commitments and the forgiveness of the second advance payment of $24.5 million. TSMC will apply the June 1996 prepayment against a portion of the wafer cost as product is delivered to C-Cube. Accordingly, the prepaid amount, which has been allocated between current and long-term assets, will be amortized to inventory as wafers are received. At December 31, 1998, $5.6 million of the remaining $18.2 million production capacity rights is included in other current assets. In January 1999, the Company signed a second amendment to its agreement with TSMC which will result in a refund to the Company of $11.7 million from the remaining $18.2 million balance in production capacity.