RLM, I just realized that noone had posted the 3DFX news. Here it is- will anyone be listening to their press conference @ 1:30 this afternoon?
Note CEO's statement in third paragraph about "very strong 1998 demand"....
Sincerely,
Doug F.
Company Press Release
SOURCE: 3Dfx Interactive, Inc.
3Dfx Interactive(TM) Anticipates Significant Quarterly Growth and
Announces New Product Plans and Timetables
SAN JOSE, Calif., Dec. 4 /PRNewswire/ -- 3Dfx Interactive(TM) (Nasdaq: TDFX - news) today announced that based on strong sales of both its Voodoo Graphics and Voodoo Rush products, the Company anticipates that its fourth quarter sales will increase by at least double the company's earlier estimate of 40% revenue growth over the third quarter sales of $10,018,000.
This increase in anticipated sales is the direct result of wafer supply exceeding management's original expectations. The Company had previously indicated that such supply was the principal factor affecting sales in the 4th quarter as the Company's backlog then exceeded available fabrication capacity. This continues to be the case in the 4th quarter, but at a higher level of supply. Further, management believes that the supply constraint will ease substantially in the first quarter of 1998.
Greg Ballard, President and CEO of 3Dfx stated, ''As we indicated in our last conference call, we continue to see demand for
our products substantially in excess of our supply. In recent weeks we have succeeded in securing additional supply. Moreover, while it is too early to be precise, a combination of increased wafer capacity and continued demand for our existing and new Voodoo 2 products has resulted in a Q1 1998 backlog that exceeds our current expectations for Q4 1997. In fact,we continue to see a very strong market throughout 1998 in both the retail add-on and the systems integrator markets. The Company's branding strategy has clearly been successful.''
Two weeks ago the Company announced a new addition to the Company's product roadmap, Voodoo 2. A chipset that resets the performance standard in the PC graphics market and was recognized as a Best of Comdex finalist, Voodoo 2 is expected to be commercially available in the first quarter of 1998. Games such as Quake were demonstrated at Comdex running at over 100 frames per second, compared to industry rivals measuring two to three times slower. Recognizing the immediate market opportunity for Voodoo 2, the Company accelerated the development and commercialization of Voodoo 2 thereby pushing
back the commercial availability of its integrated 2D/3D solution, Banshee, by one quarter. As a result, the Company believes
that the analysts' current revenue projections for 1998 are low by 25% - 30%.
According to Greg Ballard, ''We believe that Voodoo 2 re-establishes 3Dfx as the undisputed performance leader in the game enthusiast market, a cornerstone of our strategy for penetrating the mainstream graphics market. The Company further believes that an early introduction of Voodoo 2 will give us a solid revenue base as well as secure our position in the content development community and consumer market. Successful branding remains central to our longer term systems integrator and OEM business.''
The Company will discuss these matters with industry analysts, as well as expectations for financial performance in the fourth
quarter of 1997 and fiscal 1998 in a conference call this afternoon at 1:30.
3Dfx Interactive, a publicly traded company, develops high performance, cost-effective 3D media processors, software and
related technology that are designed to enable a highly immersive, interactive and realistic 3D experience across interactive
electronic entertainment platforms -- personal computers, coin-operated arcade systems and location-based entertaimnent
(''LBE''). Current 3Dfk Interactive products include the Voodoo family of accelerator chipsets, Voodoo 2 Graphics, Voodoo
Graphics and Voodoo Rush. Visit the company on the web at 3dfx.com.
This press release contains projections and other forward-looking statements regarding future events and the future financial
performance of the Company. Such statements are just predictions and actual events or results may differ materially. Many
important factors could cause actual events or results to differ materially from those contained in the Company's projections or
forward-looking statements, including the risks that the Company will not successfully complete development of Voodoo 2 or
Banshee on a timely basis or, if such development is completed, that Voodoo 2 or Banshee will perform the desired functions,
offer sufficient price/performance benefits or meet the technical or other requirements of potential buyers to realize market
acceptance, that sales and revenues will increase as expected, or if they do, that such increases will be as expected, or that
other new products will perform as intended or, if they do that they will achieve market acceptance, that some or all backlog
orders will be canceled and that wafer capacity will fail to increase as expected by the Company. The Company refers you to
documents that the Company files from time to with the Securities and Exchange Commission, in particular the Company's
Registration Statement on Form S-1, in connection with the Company's recently completed initial public offering, the
Company's Quarterly Report on Form 10-Q for the period ended September 30, 1997 and the sections in such documents
entitled ''Risk Factors'' and ''Factors Affecting Future Operating Results,'' respectively.
SOURCE: 3Dfx Interactive, Inc. |
