C-Cube Reports 28% Year-Over-Year Revenue Growth in Second Quarter; Expansion Platforms Reach Record Revenue.Business Editors and High Tech Writers MILPITAS Milpitas (mĭl'pē`təs), city (1990 pop. 50,686), Santa Clara co., W Calif., a suburb of San Jose, southeast of San Francisco; inc. 1954. Manufactures include computers and paint. , Calif.--BUSINESS WIRE)--July 24, 1999--C-Cube Microsystems Inc. (Nasdaq:CUBE) today reported second quarter revenues of $61 million, compared with $47.5 million for the same period in 1999 and $61 million for the first quarter of 2000. Net income, excluding spin-off-related costs and one-time non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and loss on disposal of DiviCom, for the second quarter reached $5.5 million, or $0.11 per share on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. During the second quarter, the company spun-off and it also secured a strategic investment from Thomson Multimedia, a leading provider of digital Set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. , DVD players A stand-alone device that plays DVDs. It contains a DVD drive and the electronics to decode the digital video. The device may play only manufactured DVDs, or it may be able to play DVD-R, DVD-RW and DVD+RW discs. DVD players are cabled to a TV or home theater system for display. and cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. products. Overall reported loss of $0.57 per share on a fully diluted basis was the results of charges related to these events and the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . "We are extremely pleased with our strongest second quarter in three years," said Umesh Padval, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of C-Cube. "We have offset the historical second quarter seasonality in our business through record revenues in our expansion platforms, DVD DVD: see digital versatile disc. DVD in full digital video disc or digital versatile disc Type of optical disc. The DVD represents the second generation of compact-disc (CD) technology. , Set-top Box and Codec." C-Cube continued to take advantage of the exploding DVD market with significant revenue growth and design win momentum. During the quarter, C-Cube announced that it was shipping its next generation DVD solution, ZiVA-4, to Samsung, LG Electronics and Zenith zenith, in astronomy, the point in the sky directly overhead; more precisely, it is the point at which the celestial sphere is intersected by an upward extension of a plumb line from the observer's location. . ZiVA-4 is a highly integrated solution that delivers enhanced audio and video capabilities at reduced system-level costs to consumer electronic manufacturers. C-Cube also made significant strides in the set-top box market, further illustrating its dominance in the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. market. The company announced its first set-top box design win at General Instrument, now owned by Motorola, with its win in their European deployment. Secondly, the company reached a significant milestone in shipping its one-millionth unit into a German market where the opportunity is approximately 18 million analog subscribers that should convert to digital over the next 5-8 years. Finally, Cisco's digital video head-end, which is DVB/DAVIC compliant, and C-Cube's digital set-top box were successfully tested to work together in an interoperable The ability for one system to communicate or work with another. See interoperability. system, demonstrating that C-Cube silicon and software effectively works with multiple digital video head-end systems. At the corporate level, the company added Howard Bailey as the Chief Financial Officer. He comes to C-Cube with extensive experience in both internal strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. as well as maintaining strong relationships with the financial community. About C-Cube Microsystems About C-Cube C-Cube Microsystems leads the industry in providing silicon solutions that are driving the global transition from analog to digital video and audio in the home. C-Cube focuses on broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications and codec products. C-Cube's broadband products enable video and data to be transmitted through interactive digital set-top boxes and digital networks. C-Cube's codec products are enabling new digital video consumer applications such as digital VHS (Video Home System) A half-inch, analog videocassette recorder (VCR) format introduced by JVC in 1976 to compete with Sony's Betamax, introduced a year earlier. , personal video recorders See DVR. , DVD players and recorders, and video editing See nonlinear video editing and video editor. systems. C-Cube is headquartered in Milpitas, California Milpitas (IPA pronunciation: mɪlpitʌs; inhabitants are called 'Milpitans') is a city in Santa Clara County, California. It is located with San Jose to its south and Fremont to its north, at the eastern end of Highway 237 and generally between Interstate freeways 680 and with offices in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, and Asia. Its stock is traded on the Nasdaq under the symbol CUBE. C-Cube can be reached at +1.408.490.8000 or at http://www.c-cube.com. Hear C-Cube's Earnings Conference Call Live at www.c-cube.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements involve risk and uncertainties. Actual results could differ materially from those projected in the forward-looking statements as a result of the risk factors set forth in the Company's Forms 10-K and 10-Q reports and in C-Cube Semiconductor Inc.'s Registration Statement on Form S-1. The Company has attempted to identify forward-looking statements in this press release by placing an asterisk (1) See Asterisk PBX. (2) In programming, the asterisk or "star" symbol (*) means multiplication. For example, 10 * 7 means 10 multiplied by 7. The * is also a key on computer keypads for entering expressions using multiplication. (*) following each sentence containing such statements The Company assumes no obligation to update any forward-looking statements.
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, Dec. 31,
2000 1999
ASSETS
Current assets:
Cash and equivalents $ 44,585 $ 123,145
Short-term investments 6,298 167,403
Receivables - net 15,772 12,516
Inventories 17,798 8,966
Deferred income taxes
and other current assets 17,383 17,395
--------- ---------
Total current assets 101,836 329,425
Property and equipment - net 18,683 20,355
Production capacity rights 24,273 4,985
Distribution rights - net 1,236 1,318
Purchased technology - net 1,613 2,307
Deferred taxes and other assets 76,142 2,393
Net assets of discontinued operations -- 101,157
--------- ---------
Total $ 223,783 $ 461,940
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 21,471 $ 24,138
Accrued liabilities 37,410 20,780
Current portion of long-term obligations 41,530 727
--------- ---------
Total current liabilities 100,411 45,645
Long-term obligations 2,051 16,842
--------- ---------
Total liabilities 102,462 62,487
--------- ---------
Minority interest in subsidiary 735 471
Stockholders' equity:
Common stock 132,833 323,756
Accumulated other comprehensive loss 4,181 (2,014)
Accumulated earnings (deficit) (16,428) 77,240
--------- ---------
Total stockholders' equity 120,586 398,982
--------- ---------
Total $ 223,783 $ 461,940
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended
June 30,
2000
Net revenues $ 61,043
Costs and expenses:
Cost of revenues 27,149
Research and development 15,069
Selling, general and administrative 10,897
One-time charges 30,047
------
Total 83,162
Loss from operations (22,119)
Other income, net 101
Income from continuing operations
before income taxes and minority interest (22,018)
Income tax benefit for continuing operations 5,847
Loss from continuing operations before
minority interest (16,171)
Minority interest in net income of subsidiary 257
Loss from continuing operations (16,428)
Discontinued operations:
Loss from operations of DiviCom business
(net of taxes) (6,039)
Loss on disposal of DiviCom business
(net of taxes) (4,442)
Net income $(26,909)
Basic earnings per share amounts:
Loss from continuing operations $ (0.35)
Loss from discontinued operations (0.22)
Net income $ (0.57)
Basic shares used in computation 47,203
Net Income excluding one-time charges $ 5,674
Earnings per share $ 0.11
Diluted shares 52,612
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion