Based on CC, I gathered that they spent about 2 million on advertising. Taking that into account, COGS begins to come in line. I still can't figure out why SG&A is so high. Could you ask about that. Also, could you ask if STB will be selling anything else besides graphics cards.
Other highlights from CC:
(1) It is noteworthy that the number of analysts has now risen to 8, even though some of them (like Robie Steven's) don't know zip about the company or its industry. I think he just showed up so that he can justify his pay cheque and gain practice, 'cause as sure as hell I can't believe they would trust him with any major company.
(2) Due to the great challenges in Q1 and they extra ordinary amount of money that 3Dfx will have to spend on advertising and packaging, expect about 7 cents a share for Q1 with possibly a bit of upside surprise due to V3.
(3) The pipeline is very full and it will be a monumental achievement for the management *if* they can execute very well this year. I'd go so far as to say that I'd be fighting the tape if indeed they fulfill my expectations of them. Here is the pipeline: V3 2000 shipment in Q1 to go against TNT and Rage. V3 3000 in Q2 to go against TNT-A. V3 4000 in Q3 to go against TNT2. Rampage in Q4 to kick everyone's ass (this was not mentioned in CC).
(4) No more Banshee after Q1, but V2 will sell through out the year. STB is expected to pick up the slack from DIMD and CREAF later in Q1.
(5) For those who don't know (this includes some of the analysts in the CC) Ensique is just a subsidary of Creative. So if they are having trouble making the cards, may be...
(6) The relationship with GTW is in tact and there was a hint that it is expanding.
(7) 3Dfx learned a lot from having GTW as a customer, as it used all of their bandwidth as well as Ensique's. So it is a good thing that they did not have another major OEM as they would not have been able to support them.
(8) 3Dfx is looking for manufacturing and distribution partners in Europe and Asia as STB's infrastructure there is wanting.
Over all, a very positive conference.
Cheers,
Sun Tzu |
