C-Cube Reports Record Results for 1995 Fourth Quarter and Year; 1995 Annual Revenues Up 177 Percent Over 1994, Q4 Revenues Up 43 Percent Over Q3

Business Wire, Jan 18, 1996

MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 18, 1996--C-Cube Microsystems Inc. (NASDAQ: CUBE) today announced record financial results for its fourth quarter and year ended December 31, 1995.

ALL SHARE AND PER SHARE AMOUNTS HAVE BEEN RESTATED TO

REFLECT A TWO-FOR-ONE STOCK SPLIT EFFECTED ON

DECEMBER 1, 1995.

Revenues in the fourth quarter were $50.6 million, up 257 percent from the $14.2 million reported in the fourth quarter of 1994 and up 43 percent from the $35.3 million reported in the third quarter.

Fourth quarter reported net income was $9.1 million or $0.26 per share. Net income, excluding a $3.8 million charge associated with purchased in-process technology, was $12.9 million, or $0.36 per share on 35.8 million shares outstanding, up 54 percent from the $8.4 million reported in the third quarter and up 524 percent from the $2.1 million reported in the fourth quarter of the prior year. Quarterly results for 1995 are further delineated in the attached SELECTED FINANCIAL DATA table.

Revenues for 1995 were $124.6 million, up 177 percent from the $45.0 million reported in 1994. Reported net income was $24.9 million, or $0.72 per share, on 34.7 million shares outstanding. Excluding the one-time charge, 1995 net income was $28.7 million, or $0.83 per share, up 473 percent from the prior year.

During 1995, the Company's earnings exceeded its past cumulative net operating losses resulting in increased tax rates throughout the year. C-Cube's effective quarterly tax rate increased from 3 percent to 25 percent during 1995 as shown in the attached tables.

C-Cube Microsystems

C-Cube Microsystems Inc. designs and markets integrated circuits and software that implement international standards for the compression of digital images and video. Compression allows digital video to be used in fast-growing applications such as multimedia computing, CD-based consumer electronics and digital television. C-Cube has its headquarters in Milpitas, Calif. and has offices in the United States, Europe and Asia. The company employs 254 people worldwide. Its stock is traded on the NASDAQ National Market System under the symbol CUBE. -0- Note to Editors: C-Cube logo is a registered trademark of C-Cube Microsystems Inc. C-Cube is a trademark of C-Cube Microsystems Inc. All other trademarks are the property of their respective holders.