Neomagic Corp. (NMGC) Message Board

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Technology Stocks : Neomagic Corp. (NMGC)

NMGC 0.0130

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Nov 14 9:30 AM EST

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To: CMon who wrote (2572)	2/19/1999 11:21:00 AM
From: Mad2	Read Replies (1) of 3645

Looking at the quarter over quarter numbers NMGC is posting a decline in gross margin with 3rd qtr 98 @ 40 and 4th qtr @ 39%. This begs the question of how much price pressure is on NMGC to reduce price to maintain their market share and position in laptop market, or is the margin decline a result of inefficiencies with the 256 chip and or cost related given that the fab companies seem to be rebounding. I think the worrisome one would be price pressure as it would signal NMGC is having difficulty differentating themselves with features being forced to meet competitive price offers.

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