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

To: Black-Scholes who wrote (40184)	4/27/1999 1:13:00 PM
From: DiViT	Read Replies (1) \| Respond to of 50808

[OT]"Is it just that the market "perceives" that BRCM has GIC/SFA as a PERMANENT customer?" They shouldn't since they've been warned. BRCM's filings are interesting, you should take some time to read them. Try 10kwizard.com . From a recent BRCM filing: "A small number of customers have historically accounted for a substantial portion of our total revenue. Sales to General Instrument (including sales to its manufacturing subcontractors) represented approximately 37.9% ofour total revenue in 1998 and approximately 31.9% of our total revenue in 1997. Sales to 3Com (including sales to its manufacturing subcontractors) represented approximately 28.5% of our total revenue in 1998 and approximately 14.6% of our total revenue in 1997. Sales to our five largest customers represented approximately 78.0% of our total revenue in 1998 and approximately 61.7% of our revenue in 1997. The loss of any key customer could materially and adversely affect our business, financial condition and results of operations." Here's another excerpt from a BRCM filing: "As part of its business strategy, the Company periodically establishes strategic relationships with certain key customers. In September 1997, the Company entered into a Development, Supply and License Agreement with General Instrument, pursuant to which the Company agreed to develop ICs for General Instrument's digital cable set-top boxes and supply such ICs to General Instrument for four years. Pursuant to this agreement, General Instrument agreed to purchase from the Company 100% of its requirements for components containing transmission, communications or video decompression (MPEG) functions for its digital cable set-top box subscriber products in the first year of this agreement, subject to the Company's good faith efforts to maintain its competitive position with respect to such components. The percentage of its product requirements that General Instrument must purchase from the Company declines each year over the term of the agreement to 45% of General Instrument's requirements in 2001. General Instrument also granted the Company a royalty-bearing, perpetual, nonexclusive, worldwide license to use its MPEG and related technology."