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Technology Stocks : 3DFX

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To: Peter S. who wrote (12844)5/20/1999 4:28:00 PM
From: Sun Tzu  Read Replies (1) of 16960
 
Thanks, I'm less confused now <g>.

Back to 3dfx. Ignoring the economies of scale, does anyone care to speculate what the net will be with $600 M in revenues? My rough calculations said EPS of $2.80~$3.60 based on 25 million shares, but I did not take into account the merger costs and the increased R&D and advertising costs. Also, how many people think that 3dfx can actually pull off $600 M in revenues? This would be 50M per month which is about what they did in each quarter or '98. Not only that, it implies shipments of about 500k units per month, which again is roughly the same as what they are doing now while V3 is fresh from the oven and *without* the competetion from TNT2. On one hand it sounds too optimistic, on another 3dfx's management has pretty much done whatever they said they would.

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