S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

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May 12 5:00 PM EST

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To: stock talk who wrote (10945)	5/13/1998 10:34:00 AM
From: Calvin Scott	Read Replies (1) of 14577

OK, here is my take on the suit of nVidia (FWIW). Now this is my opinion only but I think it makes some sense. Cirrus did not pursue nVidia because 1) they (nVidia) have little or no money and 2) they (CRUS) have been in keen competition with S3 for a number of years and 3)S3 had cash and 4) S3 is the big fish and 5) they(CRUS) received $70 million and 6) they (CRUS)were getting out of the graphics market anyway and 7) well, seven is of particular interest. Now we are really getting into my opinion but seven.......Cirrus management. They got what they wanted out of S3 and that is all they cared about. They are a little like me. Get the one you're after and leave the scraps to others. Cirrus management is/was too busy to pursue the others and frankly didn't care. Remember the talk about S3 buying Cirrus' graphics division? Remember right before the announce of the purchase of the patents that S3 licensed Rambus technology. Of course in hindsight, one can see the path that was followed by S3 and Cirrus. S3 needed the Rambus technology to incorporate Cirrus' patents. I believe around the same time frame nVidia along with a few others, also licensed Rambus (not sure but I think so). In summary, Cirrus wanted to get what they could out of their patents and S3 and move on. I like what S3 did only because as someone astutely pointed out, it will disrupt nVidia at least for the moment and cause their customers, perhaps, to second guess what they are doing with their (nVida's) chips. Contrary to popular belief, S3 did not loose any brain trust to nVidia. S3 got rid of a certain amount of dead wood some of which went to work at nVidia. That's my take on it. Anyone else? Calvin Scott

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