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

To: J Fieb who wrote (41159)	5/16/1999 12:32:00 PM
From: Don Dorsey	Read Replies (2) \| Respond to of 50808

I know it doesn't mean much, but I went past CUBE a couple times Saturday, and there was no activity at all. Only a few cars in the parking lot.

To: J Fieb who wrote (41159)	5/16/1999 3:36:00 PM
From: John Rieman	Respond to of 50808

C-Cube's Cash and the moves it made last Q...................... Liquidity and Capital Resources Cash, cash equivalents and short-term investments were $229.8 million at March 31, 1999 compared to $207.8 million at the end of 1998. Working capital increased to $249.1 million at March 31, 1999 from $220.5 million at the end of 1998. The Company's operating activities generated cash of $19.6 million in the first quarter of 1999, primarily from net income and a refund of $11.7 million prepaid production capacity rights, partially offset by increased accounts receivable. Receivable days outstanding increased from 35 days at December 31, 1998 to 47 days at March 31, 1999 primarily due to DiviCom's growing percentage contribution to consolidated revenues since a substantial portion of DiviCom's revenues are generated under long-term contracts which generally have longer collection cycles than the semiconductor business. C-Cube's investing activities, exclusive of sales and maturities of $120.3 million and purchases of $85.4 million of short-term investments, used cash of $6.8 million, primarily for $4.8 million capital expenditures. Cash provided by financing activities was $7.7 million, primarily from proceeds of $11.1 million from sales of stock pursuant to employee stock plans, partially offset by $3.3 million used to repurchase a portion of the Company's Convertible Subordinated Notes. At March 31, 1999, the Company had an available bank line of credit of $30.0 million which expires in May 2001. Borrowings bear interest at LIBOR plus 1.25% or the bank's prime rate (7.75% at March 31, 1999). The line of credit agreement requires that the Company, among other things, maintain a -14- minimum tangible net worth, a minimum annual net income (no quarterly loss exceeding $3 million) and certain financial ratios. In addition, this agreement prohibits the payment of cash dividends. At March 31, 1999, the Company was in compliance with these covenants, and there were no outstanding balances under this line.