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Technology Stocks : 3DFX
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To: Scott Garee who wrote (8040)10/8/1998 6:00:00 PM
From: David Rosenthal  Read Replies (1) of 16960
 
Scott,

They really badmouth TDFX if you read between the lines, I wonder why?

Look at this: Net sales $123,200 $92,028
Cost of sales 122,817 73,850

See the discrepancy in cost of sales. This is rebates and price
adjustments. As mentioned before: 3DFX sold Voodoo2 chips to many
companies and so there was an oversupply of Voodoo2 boards and many cheap versions. This was after Diamond paid a premium to guarantee
chip supply when Voodoo2 first came out. Effectively Diamond's margin
was killed.

Dave
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