C-Cube Reports Revenues and Profits for First Quarter of 1998.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)--April 16, 1998--C-Cube Microsystems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CUBE), the leading provider of digital video technology, today announced financial results for its first quarter, which ended March 31, 1998. Revenues for the first quarter were $87.3 million, compared with $90.1 million in the fourth quarter of 1997 and $94.1 million reported in the first quarter of 1997. Net income for the first quarter was $10.2 million, or $0.27 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . This compares with diluted earnings per share of $0.30 in the fourth quarter of 1997 and $0.40 diluted earnings per share in the first quarter of 1997. "C-Cube C-Cube Microsystems was pioneer in video compression technology and the implementation of that technology into cost-effective semiconductors. C-Cube was the first company to deliver on the market opportunity presented by the conversion of image and video data from analog to digital performed well this quarter, as we aggressively pushed forward our digital video agenda across several fronts," said Alexandre Balkanski, 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 Microsystems. "Of particular note were C-Cube production shipments of the world's first single-chip codec (1) (enCOder/DECoder) A hardware circuit that performs analog-to-digital conversion (ADC) and digital-to-analog (DAC) conversion. When analog signals are entered into a computer, cellphone or other device via a microphone or video source such as VHS tape or analog TV, and DiviCom's progress in standard as well as high definition digital television." Several noteworthy C-Cube announcements during or shortly after the quarter include: -0-
-- DiviCom set a new performance standard in MPEG-2 encoding with
the introduction of the MediaView(tm) MV40 program encoder. The
MV40 delivers increased channel count and improved video quality
by optimizing transmission bandwidth for broadcasters, satellite
operators, cable providers, wireless cable operators and
telecommunications services providers.
-- DiviCom and Victor Company of Japan, Limited (JVC) announced a
collaborative agreement to jointly develop HDTV systems,
utilizing JVC's experience in digital recording to provide the
microcode and leveraging DiviCom's skill in building video
compression systems.
-- DiviCom penetrated the U.S. broadcast market by installing an
MV40 for digital broadcasting for KOMO TV in Seattle. DiviCom
conducted a live DTV broadcast demonstration with Sinclair
Broadcast Group (NASDAQ:SBGI) and Comark Digital Services.
Additionally, DiviCom announced a co-marketing relationship with
Columbine JDS (NYSE:BGF) to offer a fully integrated management
and control system for multichannel digital broadcasting targeted
at U.S. broadcasters called TransMission Manager.
-- DiviCom and Adaptec, Inc. (NASDAQ:ADPT), a leading manufacturer
of system bandwidth solutions, announced a strategic relationship
to offer satellite-based data broadcasting services, utilizing
DiviCom's headends and Adaptec's Satellite Express PC receiver
card.
-- C-Cube introduced DVxpress(tm), the industry's first single-chip
MPEG-2 encoder/decoder (codec) for nonlinear editing (NLE)
applications. DVxpress offers C-Cube's Frame-Accurate MPEG
Editing (FAME(tm)) and has been endorsed by the industry's leading
NLE vendors including Pinnacle Systems (NASDAQ:PCLE) and FAST
Multimedia.
-- C-Cube DVD-PC was endorsed by Intel (NASDAQ:INTC) and
acknowledged by Microsoft (NASDAQ:MSFT), which builds upon
previous relationships with Toshiba for laptops, and Diamond and
Dell for desktops.
-- C-Cube announced DVD player design wins with LG Electronics,
Marantz Japan, Inc. and Tatung.
About Divicom Inc.
A wholly owned subsidiary of C-Cube Microsystems, DiviCom
develops and integrates products that make digital video networking
possible. Products include audio/video encoding, data injection
solutions, network management systems, and consulting and integration
services. Based on the MPEG-2, DVB and ATSC international standards,
DiviCom's products enable digital video broadcasting over a variety of
networks including satellite, wireless, fiber and cable. DiviCom can
be reached by phone at 408/944-6700, by fax at 408/944-6705, or via
the World Wide Web at http://www.divi.com.
About C-Cube Microsystems Inc.
C-Cube Microsystems Inc. is the industry leader in the
development and delivery of highly integrated digital video silicon
solutions that address the consumer electronics, communications and
convergence markets. C-Cube is headquartered in Milpitas, with offices
in North America, Europe and Asia. Its stock is traded on the Nasdaq
National Market under the symbol CUBE. C-Cube can be reached at
408/490-8000, by fax at 408/490-8132, or on the World Wide Web at
http://www.c-cube.com.
-0-
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, December 31,
1998 1997
ASSETS
Current assets:
Cash and equivalents $ 188,800 $ 145,034
Short-term investments 9,150 21,316
Receivables -- net 28,806 40,606
Inventories 23,290 15,270
Deferred taxes and other
current assets 27,439 26,162
--------- ---------
Total current assets 277,485 248,388
Property and equipment -- net 24,632 23,561
Production capacity rights 16,800 18,200
Distribution rights -- net 1,606 1,648
Purchased technology -- net 8,536 9,408
Other assets 2,801 2,903
--------- ---------
Total $ 331,860 $ 304,108
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 19,663 $ 9,221
Accrued liabilities 35,384 30,168
Current portion of long-term
obligations 240 608
--------- ---------
Total current liabilities 55,287 39,997
Long-term obligations 87,008 88,331
--------- ---------
Total liabilities 142,295 128,328
--------- ---------
Minority interest in subsidiary 224 365
Stockholders' equity:
Common stock 207,420 203,728
Accumulated translation adjustments (1,916) (1,969)
Unrealized loss on investments -- (17)
Accumulated deficit (16,163) (26,327)
--------- ---------
Total stockholders' equity 189,341 175,415
--------- ---------
Total $ 331,860 $ 304,108
========= =========
C-CUBE MICROSYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended March 31,
1998 1997
Net revenues 87,317 94,132
Costs and expenses:
Cost of revenues 41,014 40,975
Research and development 17,671 15,612
Selling, general and
administrative 14,586 13,070
-------- --------
Total 73,271 69,657
-------- --------
Income from operations 14,046 24,475
Other income (expense), net 274 (1,067)
-------- --------
Income before income taxes
and minority interest 14,320 23,408
Income tax expense 4,296 7,958
-------- --------
Income before minority
interest 10,024 15,450
Minority interest in net
income (loss) of subsidiary (140) 55
-------- --------
Net income $ 10,164 $ 15,395
======== ========
Diluted net income per share $ 0.27 $ 0.40
======== ========
Shares used in computation 41,137 41,209
======== ========
CONTACT: C-Cube Microsystems Inc. John Hagedorn John Hagedorn is the associate professor of criminal justice and director of the Kenneth B. Clark Center for the Study of Violence in Communities. History Hagedorn was born in Milwaukee and was raised in the smaller town of Clintonville, population 4,500. , 408/490-8000 (CFO See Chief Financial Officer. ) Nick Kormeluk, 408/490-8188 (Director of IR) |
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