Just for the record...Thursday's release...
Thursday December 4, 4:05 pm Eastern Time
Company Press Release
SOURCE: 3Dfx Interactive, Inc.
3Dfx Interactive(TM) Anticipates Significant Quarterly Growth and
Announces New Product Plans and Timetables
SAN JOSE, Calif., Dec. 4 /PRNewswire/ -- 3Dfx Interactive(TM) (Nasdaq: TDFX - news) today announced that
based on strong sales of both its Voodoo Graphics and Voodoo Rush products, the Company anticipates that
its fourth quarter sales will increase by at least double the Company's earlier estimate of 40% revenue growth
over the third quarter sales of $10,018,000.
This increase in anticipated sales is the direct result of wafer supply exceeding management's original
expectations. The Company had previously indicated that such supply was the principal factor affecting sales in
the 4th quarter as the Company's backlog then exceeded available fabrication capacity. This continues to be
the case in the 4th quarter, but at a higher level of supply. Further, management believes that the supply
constraint will ease substantially in the first quarter of 1998.
Greg Ballard, President and CEO of 3Dfx stated, ''As we indicated in our last conference call, we continue to
see demand for our products substantially in excess of our supply. In recent weeks we have succeeded in
securing additional supply. Moreover, while it is too early to be precise, a combination of increased wafer
capacity and continued demand for our existing and new Voodoo 2 products has resulted in a Q1 1998
backlog that exceeds our current expectations for Q4 1997. In fact, we continue to see a very strong market
throughout 1998 in both the retail add-on and the systems integrator markets. The Company's branding strategy
has clearly been successful.''
Two weeks ago the Company announced a new addition to the Company's product roadmap, Voodoo 2. A
chipset that resets the performance standard in the PC graphics market and was recognized as a Best of
Comdex finalist, Voodoo 2 is expected to be commercially available in the first quarter of 1998. Games such as
Quake were demonstrated at Comdex running at over 100 frames per second, compared to industry rivals
measuring two to three times slower. Recognizing the immediate market opportunity for Voodoo 2, the
Company accelerated the development and commercialization of Voodoo 2 thereby pushing back the
commercial availability of its integrated 2D/3D solution, Banshee, by one quarter. As a result, the Company
believes that the analysts' current revenue projections for 1998 are low by 25% - 30%.
According to Greg Ballard, ''We believe that Voodoo 2 re-establishes 3Dfx as the undisputed performance
leader in the game enthusiast market, a cornerstone of our strategy for penetrating the mainstream graphics
market. The Company further believes that an early introduction of Voodoo 2 will give us a solid revenue base
as well as secure our position in the content development community and consumer market. Successful
branding remains central to our longer term systems integrator and OEM business.''
The Company will discuss these matters with industry analysts, as well as expectations for financial
performance in the fourth quarter of 1997 and fiscal 1998 in a conference call this afternoon at 1:30.
3Dfx Interactive, a publicly traded company, develops high performance, cost-effective 3D media processors,
software and related technology that are designed to enable a highly immersive, interactive and realistic 3D
experience across interactive electronic entertainment platforms -- personal computers, coin-operated arcade
systems and location-based entertaimnent (''LBE''). Current 3Dfk Interactive products include the Voodoo
family of accelerator chipsets, Voodoo 2 Graphics, Voodoo Graphics and Voodoo Rush. Visit the company on
the web at 3dfx.com.
This press release contains projections and other forward-looking statements regarding future events and the
future financial performance of the Company. Such statements are just predictions and actual events or results
may differ materially. Many important factors could cause actual events or results to differ materially from those
contained in the Company's projections or forward-looking statements, including the risks that the Company will
not successfully complete development of Voodoo 2 or Banshee on a timely basis or, if such development is
completed, that Voodoo 2 or Banshee will perform the desired functions, offer sufficient price/performance
benefits or meet the technical or other requirements of potential buyers to realize market acceptance, that sales
and revenues will increase as expected, or if they do, that such increases will be as expected, or that other new
products will perform as intended or, if they do that they will achieve market acceptance, that some or all
backlog orders will be canceled and that wafer capacity will fail to increase as expected by the Company. The
Company refers you to documents that the Company files from time to with the Securities and Exchange
Commission, in particular the Company's Registration Statement on Form S-1, in connection with the
Company's recently completed initial public offering, the Company's Quarterly Report on Form 10-Q for the
period ended September 30, 1997 and the sections in such documents entitled ''Risk Factors'' and ''Factors
Affecting Future Operating Results,'' respectively.
SOURCE: 3Dfx Interactive, Inc.
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