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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Gary Hoyer who wrote (1197)	1/5/1998 12:17:00 AM
From: William T. Katz	Read Replies (2) \| Respond to of 16960

The previous release said the production bottleneck should be relieved by Q1 98. That would allow all those "out of stock" signs to turn into $$$ for 3dfx. The projected 0.50/share I think is fairly conservative given that increased production will help the margins even as 3dfx drops prices. But with Voodoo2 for 2nd half and then Banshee there is significant upside potential if 3dfx can enter the lower-margin but high volume integrated 2D/3D chip market. 100% or more EPS over 3Q is not difficult when your that 3Q EPS is next to nothing. Like you say, mindshare + volume production is the key. I'm wondering when Intel will make a big hoopla with the i740 chip introduction. Previews say its like a thermally-hot Riva 128.

To: Gary Hoyer who wrote (1197)	1/5/1998 2:54:00 PM
From: dzzhang	Read Replies (1) \| Respond to of 16960

Intel's expected good Q4 is another indication for a great Q4 in TDFX. (Note, the potential trouble for Intel's Notebook biz is also a plus for TDFX, since it means the desktop sales is much better than expected ) Monday January 5, 1:16 pm Eastern Time Intel may see upside surprise in Q4-analyst SAN FRANCISCO, Jan 5 (Reuters) - Intel Corp could see an upside surprise of up to $0.15 a share in the fourth quarter, up from Wall Street's current consensus estimate, said Ashok Kumar, an analyst at Loewenbaum & Co Inc. Kumar said that he is looking for an upside surprise because flash memory prices have stabilized, and he believes Intel's gross profit margins have recovered to the 60 percent level Intel reported in the second quarter. According to First Call, the consensus on Wall Street for Intel's fourth quarter is $0.90 a share. Intel shares were up 2-3/8 to 75 in very active trading. Kumar also said that aided by a recovery in blended microprocessor average selling prices, he expects Intel's overall revenues to have grown 13 percent sequentially and eight percent from the year-ago period. ''As such, we expect the company to post earnings of about $1.05, a $0.15 surprise to the consensus but flat with the earnings recorded in the year-ago period,'' Kumar said. Kumar also warned of an inventory build-up of notebook processors, both with original equipment manufacturers and in the distribution channel. He expects as a result, significant price cuts by Intel in the near-term to clear inventory. ''That could cause price instability in the short-term,'' Kumar said, but he added that the worst-case ''bear story'' on Intel has passed. Kumar is forecasting minimal sequential microprocessor unit growth until the third quarter of 1998. ''The significant build-up of microprocessor inventory is expected to have negative repercussions on ASPs (average selling prices) short-term,'' he said. ''As such, we expect (Intel) stock to be in a trading range between $70 to $80 until the inventory situation clears up and demand improves.''