News from Roberston Stephenson:
Hopefully there is more to come on video products, but this looks promising:
S3( S3 Inc ) plans new products to propel sales
SAN FRANCISCO, Feb 26 (Reuter) - S3 Inc said it is developing products for mobile computers and for audio acceleration
which it expects will be major revenue producers.
"These two products will be much of the catalyst that propels us beyond $130 million level," chief financial officer George
Hervey told the Robertson, Stephens & Co technology conference. S3 had $132 million in sales in the fourth quarter of 1996.
While S3 has one multimedia accelerator product for mobile computers out on the market, the new one under development
will be "revolutionary technology," Hervey said.
Hervey also reiterated that S3 has increased its target gross margin to 42 percent, plus or minus a percentage point, from 40
percent formerly and increased its target operating income margin to 17 percent, from 15 percent formerly.
Hervey said the new targets look possible because new eight-inch wafer and half micron manufacturing technology has
lowered its costs, among other things, and it is achieving better overall costs from its manufacturing partners.
S3, the leader in graphics accelerators and drivers especially for 3-dimensional computing, has almost no presence in the audio
or mobile markets now, Hervey said. But this will change with the new products, he added.
Darin |
