Diamond is generating so much business with its "recently announced relationships with major OEM partners" that it is outsourcing its board manufacturing (for high quality graphics accelerators). It looks like it's linked to the Intel and CUBE business....................
CMC Industries, Inc. Announces Turnkey Relationship With Diamond
Multimedia
SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb.18, 1998--CMC Industries, Inc. (NASDAQ: CMCI) today
announced that it has been awarded a turnkey contract by Diamond Multimedia Systems, Inc. (NASDAQ: DIMD) to
manufacture products in support of Diamond Multimedia's recently announced relationships with major OEM partners. The
contract is expected to generate revenue for CMC of approximately $100 million on an annual basis. "We are pleased that
Diamond Multimedia has selected CMC as a manufacturing partner in executing its OEM strategy," commented Matthew
Landa, President & CEO of CMC Industries. "This contract reflects the strength of the working relationship that we have
established with Diamond over the past two years and is a reflection of the high level of quality and service provided by CMC
to its customers. We look forward to assisting Diamond in serving the growing needs of its OEM customers." "Diamond
Multimedia looks forward to working with CMC Industries to provide high-quality graphics accelerators to our growing
number of customers," said Larry Elizondo, Vice President of PCA Operations at Diamond Multimedia.
Diamond Multimedia
Diamond Multimedia is driving the interactive multimedia market by providing advanced solutions for home, business and
professional desktop computer users, enabling them to create, access and experience compelling new media content from their
desktops and through the Internet. Diamond accelerates multimedia from the Internet to the hard drive with products that
include the Stealth and Viper(R) series of media accelerators, the Monster series of entertainment 3D and sound accelerators,
the Fire series of professional 3D and SCSI accelerators and the Supra(R) series of modems. Diamond also markets DVD
and video phone kits. Diamond's common stock is traded on the NASDAQ stock market under the symbol DIMD, and its
web site address is diamondmm.com. Headquartered in Santa Clara, California, CMC Industries is a leading
provider of electronics manufacturing services to original equipment manufacturers in the telecommunications, computer and
electronics industries. The Company has operations in Corinth, Mississippi; Santa Clara, California; Hermosillo, Mexico;
Huntsville, Alabama and Taipei, Taiwan. For further information, visit CMC's home page at cmcindustries.com.
The matters set forth in this news release may contain forward looking statements. Actual results may differ materially from
those described herein and are dependent on certain risks and uncertainties including, but not limited to, the timing and
magnitude of orders from customers with projects currently in development as well as continued orders and growth in orders
from customers already in volume production, the ability of the Company to accurately forecast the timing and magnitude of
future customer orders and appropriately adjust its expenditures in respect thereof, changes in customer mix and volume,
competition, component availability, inventory obsolescence, business conditions in the general economy as well as the
industries in which the Company and the Company's customers' compete and other risk factors such as those detailed in the
Company's SEC reports.
CONTACT: CMC Industries Inc., Santa Clara
Andrew J. Moley, 408/982-9999 ext. 503
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