I just listened to the conference call.
I appears they wrote down Savage 4 assets (S540, S540+), and Viper 770 inventory (they still sell NVDA products, don't they or are they end of life?)
Rio sold $18 million 76% more than last qtr. so at ($269/$169 retail, rio 500/300) about $100/$200 per ($180 average? hey I'm mediocre remember, the math has to be easy), thats about 100k units or thereabouts. Assuming ASPs were level from Q3,thats $10.2 mil rev)
They were flash memory constrained and still had healthy gross margins.
They redesigned the board to take other flash chips, and are now trying to fill backorders.
Communications (networking, Rio,wireless, and soon powerline networking) is profitable and 30% of sales (of $180 mil) = $48 mil revenue.
That means rio itself is 37.5% of non graphics revenue.
I'll clean up my notes and post it later tonight.
My take on the call is that
1) they will spin out graphics to Via (their $13.50 purchase to close in next 2 weeks, so will hold down S3 price for a while, maybe)
2) they will keep communications portion and hope that division will have value of over $1 billion by itself.
I am reading a lot into their products. But its indicative that Ken Potasher didn't know his Savage 2000 product was a Viper 2 not a Viper 770 (the NVDA TNT2 product).
But he knew what was going on with the deals he was making with music, consumer electronics, and networking. (he kept mentioning them but woulding give specifics).
2 bright spots for graphics is Fire GL in Germany (selling well in IBM workstations), and mobile graphics (Toshiba Tecra 8100). But I would guess that revenue is small.
I'd say the CC was very positive, if you like dumping slower performing commodity divisions, and investing in high growth segments.
BL |
