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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)
SIII 0.00010000.0%May 12 5:00 PM EST
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To: Don Earl who wrote (12594)1/23/1999 11:42:00 AM
From: Synapsid  Read Replies (1) of 14577
 
Regardings S3's results for last quarter, I think their products (original Savage3D, Trio3D) were not well positioned, but nevertheless they should be seeing some benefit from strong PC demand, especially in Europe.

I can confirm that the Savage3D seems to be considerably more popular in Europe than it is in the US. Two out of four stores in the mid-sized town where I live feature the Hercules Savage3D product in their mid-to-high-end PC offering. However, I don't think the Savage3D is getting much of the retail upgrade market, and I doubt that models from Asian manufacturers are sold in truly meaningful quantities (Banshee models from Asia are probably more popular, although the volume from these manufacturers is really in low-end boards with Trio3D, SiS and Intel chips).

Also, S3 should see reasonable volume on the Trio3D product. IBM's business PCs are currently 100% Trio3D, and IBM has reported a 40% increase in PC sales in their recent earnings report (although S3 is probably weak in the latest design cycle for the Pentium III and socketed Celeron which might already have been reflected in the last quarter). I doubt there will be an upside surprise though.
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