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

To: burn2learn who wrote (7594)	12/31/1997 7:34:00 AM
From: Fred Fahmy	Read Replies (1) \| Respond to of 13925

mike, <what would be the effect of slow product movement during christmas to accounting? would it be as simple as high sales recorded for this qtr and a buildup in inventory next? When is a sale, a sale to creaf(when product reaches distribution channel?).> Generally, revenue is recognized at the time products are shipped. Q2 (this quarter) should do well because of the new products which did require channel filling. Currency should also have helped this quarter as should have Christmas seasonality. Sell-thru will be the real key looking beyond this qarter to 3Q98. Looking forward, I think a key comparison will be next quarter YTY (i.e. 3Q98 vs. 3Q97). That will go a long way in providing the answer to the question "are the new products selling". I think the recent acquisitions were strategic and will help provide the long term revenue growth investors are seeking. Diversification away from just a sound board company to a major comprehensive multi-media solution provider (i.e. ISA&PCI sound, speakers, video, DVD drives/kits) and focus on significantly expanding distribution beyond just the retail channel to include more OEMs also look like winning strategies to me. Good luck, FF

To: burn2learn who wrote (7594)	12/31/1997 10:37:00 AM
From: Chris Sholler	Respond to of 13925

Any conservative company, like CREAF, monitors their sell thru during the period and takes reserves against revenue (in that quarter) to allow for any future adjustments to pricing which may be required to move the channel inventory. Then there are companies like DIMD which have done exactly what you suggested. Given the stock's performance over the last month, I think most concerns about the quarter are already discounted. The next few weeks should bring some surprises that will overshadow any issues with the December quarter.

To: burn2learn who wrote (7594)	1/5/1998 9:27:00 AM
From: Gregory Yap	Read Replies (1) \| Respond to of 13925

Mike, Creative recognizes sales when it ships to third party shippers and makes an allowance/estimate for returns during the quarter. Incidentally, I went to their local (and only) franchisee in Singapore a few times before x-mas and there were people looking and listening to dvd encore demos but the cash register wasn't ringing much though.

To: burn2learn who wrote (7594)	1/8/1998 2:29:00 AM
From: burn2learn	Respond to of 13925

Any ideas on how the awe pci card will impact exsiting ide card sales? I myself really want a pci card and would only buy the ide based card if the pirce differental was steep. Supposedly this card will be introduced in 1qtr 98(I'll guess around earnings). Pci will be the future platform for the next card also(live: which according to the comdex info will be around in ~late 98), so some kinda phase out has to take place this year. A awe pci will put price/margin pressure on the existing awegold, value and sb16. I really wasnt paying attention to creaf when the awe32/64 were introduced how good did creaf handle the transition? Also after rereading comdex info, I noticed that the chip used in the pciawe was currently sampling with oem's for applications on motherboards, I real wildcard at earnings would be the annoucement of design wins!!! much possible good news to come 1.new pci awe 2.possible design win? 3.dvd sales 4.dvd-ram 5.voodoo 2 graphics card this coming qtr 6.aquisitions? 7.expansion for resent aquisition product lines 8.the ever possible buyback of shares! I really dont see any new sound card products after pci awe until "live". Although the Pciawe would fit into the $150 spot between the valve and the goldawe, I would think that margin growth is over and that contraction will actually occur as the year goes by. mike