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

To: VincentTH who wrote (11091)	4/28/1998 9:49:00 PM
From: Brian Lempel	Read Replies (4) \| Respond to of 13925

Conference call notes. Pardon the mess. Revenue +5.5% excluding Asia +14% Big News is that Environmental Audio will not ship until beginning of Q1 (next quarter is Q4). However, they are projecting Fiscal year '99 top line growth of 20-25%, which is way above estimates. Next quarter will be flat with year ago. Inventory up due to PCI ramp and voodoo parts. Voodoo II sales hidnered by memory contraint. However, they are follwing customer support and using it on 12Mb boards. Possible upside to next quarter projections if this problem is resolved. Big OEM design wins for Ensoniq coming very soon. Likely with Japanese manufacturer(s). Terms can't yet be disclosed, but the deal is secured. Number of wins unspecified. Also, they are looking for numerous speaker OEM wins. Looking to ramp OEM 2 part speaker systems. Cash did ont rise because they put the money into securing deals with Asian parts suppliers. Not too much on this. Did not hear Sim clearly, and not really sure it was addressed in depth. Notice that liabilities are down as a result, however. Inventory turns up... Stressed the importance to look beyond next quarter. Margins looking to be 32% with a 2$ margin of error in FY '99 Asian looks to be bottoming. Latin America showing strength at end of Q. Europe and US strong. New PCI64 selling through very well. This was said numerous times. 20-25% growth will really begin to take effect in the 2nd half of the year as DVD takes off and OEM deals take off. Environmental audio to ship at the beginning of Q1. Expect Voodoo II cycle to last 6-9 months. Very good relationship with other chipmakers in case another grpahics chip becomes hot. Audio revenue down 18% because they don't want to stuff the channels awaiting Environmental Audio. Hope this has been enlightnening. Brian