This is BAD news. No way to look at other than baaaaad. I am VERY UPSET. As Patrick pointed out, I spoke with DZ only a few weeks ago, 2/3ds through the quarter. I was assured that things were ok. I posted all of the info, and ended with the following comment: "Frankly, IMHO, I don't see how they will make estimates unless Banshee does very
well. I believe that TDFX is quite confident in Banshee, and they continue to state that
they "are very confident of Banshee as an OEM part"."
What little research I had done had shown a slowdown in sales. STBI made it clear that they had enough inventory. DIMD had said that they refused to lower the price of their board, and had therefore not sold as many as they had planned (by a fe hundred thousand..). They clearly had inventory. Shopper.com rankings (hmm...seems that it may just be somewhat accurate after all...) fell. Yet TDFX themselves failed to acknowledge any of this. Big back to school season. What a load of crap.
What is with the Banshee and the fourth quarter thing? What will inventory look like?
Possible explanation: orders dried up to make room for TNT and other cards? Perhaps since TNT is not up to snuff, V2 will again come to the front of the pack?
Good news: Sega deal was cash, and evidently a decent amount.
Stock price is quite low at the moment. Solid balance sheet, new product, imminent OEM deals (?) and our best season coming up should soften the blow. I think we will take out the 9 1/8th level, hit the low 8's and close in mid 9's. This will be exactly what happens :^) as I am a God. (the God of bad investing- Lose-icus). When the Sega news hit, I was buying big. Tomorrow may just present a decent buying op.
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