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Technology Stocks : 3DFX

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To: David R. Parker who wrote (5170)7/9/1998 11:23:00 PM
From: Mike O'Brien  Read Replies (3) of 16960
 

-Re: 5 millionth chip: got a little bit of a laugh (lots of phone calls for him on that one). He seems to think that 5MM is a bit high


--

Does anyone recall when they announced 4 million? The first time I remember hearing it was at CGDC in the beginning of May, but it may have been old news by then.

If they sold fewer than a million chips this quarter, at $45-$50 per chip, then we are in trouble. Last quarter TDFX had profits of $7.5M on sales of $50M. This quarter they will have higher operating expenses (building a new research facility in Austin), higher taxes, and more shares to dilute the earnings. Just to show flat earnings, we need sales to be higher than $50M, which means more than 1M chips.

Mike
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