3DFX Message Board - Msg: 7515945

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Technology Stocks : 3DFX

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To: Michael G. Potter who wrote (10333)	1/27/1999 3:41:00 PM
From: Patrick Grinsell	Read Replies (1) of 16960

An interesting note... At 150M revenue that would put ASP for boards at $75. Yuck. Is the retailer's margins really that high? I thought they got around 20%. Mike, I don't think we can just plunk in 150M into STB and a assume same GM because they're making their own boards and fixed costs are a large part of their CGS right now. They've never done even close to that kind of volume. I know that on high-volume periods they've gotten around 30%. Maybe that's the way to go. Not one analyst asked why the damn inventory was so high (it remaining mostly flat). Given that Banshee was selling out and they haven't been making any more Voodoo2 the inventory should have declined a lot. Can analysts be sued for negligence? They'd better hope not. Pat

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