C-Cube Microsystems, the Milpitas, California electronics company, warned that revenues for the current quarter will around $70-75m, well below expectations, and sharply down from the $94m recorded in the first three months. It blames most of the shortfall on reduced sales of decoders, mainly used in DVD players sold in China. Earnings per share are expected to be around $0.20-$0.25 for the quarter ending in June compared with $0.41 in the first three months. Analysts were expecting $0.40 this time. Following the news Alex Brown & Sons Inc lowered its rating on C-Cube shares to market perform from buy. The shares tumbled $5.625 on Tuesday, more than 22%, to close at $19.875.
