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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Roger Hess who wrote (6415)	12/4/1997 11:08:00 AM
From: Brad Patton	Respond to of 13925

[Some attempted answers:] 1) How much cash does the company have in the bank? approx $5 a share. 2) Most importantly, the DVD sales. How much effect will the DVD sales have on profits for the quarter? What % of total sales for the company as a whole are due to DVD drives? 3) Do they sell any of their DVD drives under another company's name? 4) Do you see Creative's DVD drives being packaged in Dell or Compaq computers any time soon? 5) Does anyone have DVD sales figures for Creative for each of the last four quarters? I will attempt to answer all of these questions at once. Creative is not a DVD manufacturer. They learned that lesson the hardway with CD-ROMs. When CD-ROM prices dropped through the floor they were forced to write down large amounts of inventory. With DVD they rebrand another manufacturer's drives (I forgot whose, it has been mentioned here before). Don't expect to see them in new machines as the Dell's and Compaq's of the world will go to the same OEMs as Creative. Their DVD strategy is part of an overall multimedia one, including graphic cards, speakers, software, and yes soundcards. Their DVD kits have only been available for a short time and Creative has not broken out sales from the overall multimedia updgrade category. While I think the DVD aspect is an important part of the story. I don't think it the primary reason to own Creative. That would be the overall multimedia story. I personally would rather them offer see a multi-function graphics card. Such as ATI's ALL-In-Wonder, which combines a TV tuner, MPEG and 3D accelerator plus a couple others I forget.