C-Cube Spins Off Semiconductor Business; New CEO Takes Helm.Business Editors & Technology Writers MILPITAS, Calif.--(BUSINESS WIRE)--May 3, 2000 C-Cube Microsystems (Nasdaq:CUBE) today announced the spin-off of its semiconductor division into an independent company, and its listing on Nasdaq under the C-Cube Microsystems name and the stock symbol CUBED. The spin-off is an important final step required prior to completion of the merger of DiviCom Inc., its former subsidiary, with Harmonic Inc. (Nasdaq:HLIT). As previously disclosed, the spin-off carries a corporate tax payable by the new semiconductor company that will be determined based on the trading value of the new semiconductor company as of May 3, 2000. Based on yesterday's "over-the-counter" market closing price of $24.31, the company would need to seek approximately $200 million in debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. to satisfy this obligation as well as the company's other current cash needs. Umesh Padval, a 16-year semiconductor industry veteran who has been president of C-Cube Semiconductor since 1998, will become 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 the new spun-off company. "The spin-off creates the world's leading pure-play semiconductor company in an extremely vibrant growth market for entertainment and information - digital video," Padval said "We are excited about our growth over the past year as well as the growth potential of 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 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. and 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, ." The new company's board of directors comprises Alex Balkanski, who will serve as chairman, T.J. Rodgers, President and CEO of Cypress Semiconductor Cypress Semiconductor is a semiconductor design and manufacturing company. It began operations in 1982 and listed publicly in 1986. Two years later, the company shifted over to the New York Stock Exchange under the symbol, (NYSE: CY). , Greg Reyes, Chairman of Sync Research, Baryn Futa, CEO of MPEG LA (MPEG LA, LLC, Denver, CO, www.mpegla.com) The organization that offers joint licenses and collects royalties for patents necessary for MPEG-2, MPEG-4 and other technologies. For example, in the MPEG-2 license, 23 companies hold more than 600 essential patents. , and Umesh Padval. Although the digital video pioneer will continue to operate under the C-Cube Microsystems name, the spin-off marks a temporary change in C-Cube's stock symbol. The company's stock will trade on the Nasdaq market under the symbol CUBED for approximately 20 trading days. It will then return to its original CUBE symbol. 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 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, DVD players and recorders, and video editing systems. C-Cube is headquartered in Milpitas, California with offices in North America, Europe, and Asia. Its stock is traded on the Nasdaq under the symbol CUBED. C-Cube can be reached at 408/490-8000 or at http://www.c-cube.com. C-Cube and the C-Cube logo are registered trademarks of C-Cube Microsystems, Inc. All other trademarks or registered trademarks are property of their respective owners. |
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