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Technology Stocks : Creative Labs (CREAF)
CREAF 0.370-21.3%Oct 31 1:10 PM EST

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To: Brian Lempel who wrote (13438)1/29/1999 7:26:00 PM
From: burn2learn  Read Replies (1) of 13925
 
there is a summary on yahoo thats good. i listened to the live c.c. and was not impressed with the short term future.

q3 will be risky.
-they are stopping future perchases(major) with tdfx, and as a result will get lower video revs, also to compound the issue they will be agressive with the products currently in inventory(banshee,voodoo2)


-latin america is week, they will sacrifice revs to limit exposure to credit issues.

-dvd, could have sold more but supply of drives was limiting. will continue to limit revs in this qtr

-cd rom-great sellers, little profit

lowered gross margins in q3 27% based on above.

sim gave his new vision. basically leverage creaf name and partnerships to expand to the living spaces. called the new entertainment space personal digital entertainment space(something like that). will include;
digital amp
digital speaker
digital keyboard
digital audio player-can add eax to all.
key element to all is creative software. stressed no other major player is in this area.
imo sim did not sell his vision well, he presented poorly
they will provide better outline at upcoming c.c with BRS
oems design wins coming, announced ibm win fir video.
sub 1000 pc is a plus for creative..people have more money to upgrade

3d graphics co's knocking on creaf door(s3, intel)

shares repurchased will be removed from q3 eps

mike
this bugged me! sim said that if creaf basically a bargin price for shares they will buy.WTF
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