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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: James Luk who wrote (8542)	12/22/1997 10:52:00 AM
From: Calvin Scott	Respond to of 14577

1. Take immediate action to trim deadwoods who are crowding the plants. 2. Massive layoffs to cuts costs in order to be profitable in the low and middle end of the graphics market which S3 still dominate. These segments will be under intense pricing pressure as time goes on. 3. Strategic negotiation with key suppliers to reduce costs. 4. Massive program of product yield enhancement to reduce cost. 5. Streamline ALL organizations to be nimble, efficient and effective. 6. Reevaluate the capabilities of critical personnel for GX3 and Vortex to assure that they can indeed execute. It will be a boost to S3 if it can announce that these two programs are ahead of schedule.

To: James Luk who wrote (8542)	12/22/1997 11:12:00 AM
From: Calvin Scott	Respond to of 14577

James, FYI, "1. Take immediate action to trim deadwoods who are crowding the plants." S3 has the problem of retaining what they have. If there is any deadwood left I would be surprised. "2. Massive layoffs to cuts costs in order to be profitable in the low and middle end of the graphics market which S3 still dominate. These segments will be under intense pricing pressure as time goes on." Massive??? How massive can you be with 600 employees? Do you have any idea of what you are talking about? "3. Strategic negotiation with key suppliers to reduce costs." Do you actually think this has not happened and isn't ongoing? "4. Massive program of product yield enhancement to reduce cost." Well I guess if we lay off all of the QA and Failure Analysis folks we won't have to worry about this. "5. Streamline ALL organizations to be nimble, efficient and effective." What do you think TH has been doing since his arrivival in early September? "6. Reevaluate the capabilities of critical personnel for GX3 and Vortex to assure that they can indeed execute. It will be a boost to S3 if it can announce that these two programs are ahead of schedule." Check out #4. You want "massive" layoffs? So much for redirecting "critical" personnel! A company this small is alreadly operating on a shoestring. What S3 needs is strong management leadership, a little luck in getting out the GX3 ahead of schedule and somehow, they need to recapture their markets. Has anyone been into the computer stores lately? Seen and S3 "Onboard" gadgets? Neither have I. Calvin