UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
[ ] Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue.
[ ] Form 3 Holdings Reported
[ ] Form 4 Transactions Reported
1. Name and Address of Reporting Person(s)
Brown IV, Frederick
1778 McCarthy Blvd.
Milpitas, CA 95035
2. Issuer Name and Ticker or Trading Symbol
C-Cube Microsystems Inc. (CUBE)
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
December 31, 1998
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
[ ] Director [ ] 10% Owner
[X] Officer (give title below) [ ] Other (specify below)
Senior Vice President, Worldwide Sales
7. Individual or Joint/Group Filing (Check Applicable Line)
[X] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
Table I Non-Derivative Securities Acquired, Disposed of, or Beneficially
Owned
- - -------------------------------------------------------------------------
- -----------------------------------------------------------
1)Title of Security 2)Trans- 3.Trans-
4.Securities Acquired(A) 5)Amount of 6) 7)Nature of
action action or
Disposed of (D) Securities Indirect
Date Code
A Beneficially D Beneficial
(Month/
or Owned at or Ownership
Day/Year) Amount
D Price End of Year I
- - -------------------------------------------------------------------------
- -----------------------------------------------------------
<CAPTION>
Table II (PART 1) Derivative Securitites Acquired, Disposed of, or
Beneficially Owned (Columns 1 through 6)
- - -------------------------------------------------------------------------
- -----------------------------------------------------------
1)Title of Derivative 2)Conversion 3)Trans- 4)Trans-
5)Number of Derivative 6)Date Exercisable and
Security or Exercise action action
Securities Acquired (A) Expiration Date
Price of Date Code or
Disposed of (D)
Derivative
Date Expiration
Security Code A
D Exercisable Date
- - -------------------------------------------------------------------------
- -----------------------------------------------------------
<S> <C> <C> <C> <C>
<C> <C> <C>
Stock Option (right $17.8750 11/02/98 A
75,000 (2) 11/02/08
to buy) (1)
<CAPTION>
Table II (PART 2) Derivative Securitites Acquired, Disposed of, or
Beneficially Owned (Columns 1,3 and 7 through 11)
- - -------------------------------------------------------------------------
- -----------------------------------------------------------
1)Title of Derivative 3)Trans- 7)Title and Amount
8)Price 9)Number of 10) 11)Nature of
Security action of Underlying
of Deri- Derivative Indirect
Date Securities
vative Securities D Beneficial
Amount or Security Beneficially or Ownership
Number of Owned at I
- Title
Shares End of Year
- - -------------------------------------------------------------------------
- -----------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C> <C>
Stock Option (right 11/02/98 Common Stock, par
75,000 75,000 D
to buy) (1) value $0.001
<FN>
Explanation of Responses:
(1) Granted pursuant to the C-Cube Microsystems Inc. 1994 Stock Plan.
(2) The option is exercisable to the extent shares subject to option vest.
1.6667% of such shares vest monthly until 11/1/2003 provided Mr. Brown
continues to be employed by the Company.
</FN>
</TABLE>
SIGNATURE OF REPORTING PERSON
/S/ Frederick Brown IV
DATE 1/6/99
