Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: michael liu who wrote (8939)	1/25/1998 1:57:00 PM
From: Mark Chavez	Read Replies (3) \| Respond to of 14577

Try finding a S3 graphics card. It's tough, real tough, whereas last year it was trivial. Also, even on the rare occasion that I find a S3-based card it is dirt cheap. Thus, if I had to make a prediction, I'd say earnings will be terrible. No volume in SonicVibes or mobile graphics, graphics business heavily dependent on Asia, inventory writeoffs, layoffs, lawsuits, sold 1/3 of the only profitable part of the business, it just looks real ugly. In addition, I believe Intel is one of S3's major customers and I don't think they will be needing S3 chips in the near future. The layoff annoucement prior to conference call was a good P.R. move, we're cutting costs, blah, blah, blah, it ties the layoffs into "good news." However, the real reason the layoffs occurred is likely that business has shrunk dramatically for S3. Hence, the prediction for really bad earnings. Personally, I'm waiting for a design win involving Faroudja and like watching rather than hoping, especially with the current S3 board. Mark.