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AccelGraphics Sees 3Q Results Below Analysts' Expectations
ACCELGRAPHICS INC. Sees Third Quarter Results Below Analysts' Expectations--
Sept. 10, 1997, AccelGraphics Inc. (ACCL) said it expects to report a third quarter loss of $0.07 to $0.09 on revenues of about $5,500,000 to $6,500,000.
ACCL noted that the anticipated results are lower than analysts' expectations. The company was not available to provide further details. ACCL did note that anticipated revenues compare with revenues of $4,300,000 for the 1996 third quarter.
The company said original equipment manufacturer (OEM) revenues were lower than expected as a result of few orders from a major OEM, and also cited a delay in revenue contribution from the company's recently announced OEM agreement with Gateway 2000.
ACCL said it experienced a slowdown in its distribution channels, which typically includes significant Alpha-based shipments. Specifically, ACCL said that, while the Intel version of the AccelECLIPSE has been being shipped for several months, there have been delays in completing the Alpha version of this product. The company said it expects Alpha drivers to be in full production shortly, with both the Intel and Alpha versions of AccelECLIPSE and AccelPRO MX being shipped in the fourth quarter.
Furthermore, ACCL said the availability of older, lower price TX chips continued to create pricing pressures in this already competitive market, which resulted in fewer than anticipated initial customer conversions to the company's new AccelPRO MX product.
Finally, the company said, some product introductions were not on schedule because of delays in chip availability from the manufacturer. ACCL noted that it now expects its AccelSTAR II Permedia 2-based products to be in full production beginning early in the fourth quarter. |
