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

To: Chi Pan who wrote (10802)	5/4/1998 8:30:00 AM
From: stock talk	Read Replies (2) \| Respond to of 14577

This was faxed to me this morning, I was told it is from todays WSJ, can anyone confirm S3 Plans To Unveil Powerful New Graphics Chip On Monday By Mark Boslet PALO ALTO (Dow Jones)--S3 Inc. (SIII) hopes to rekindle sales growth with a capable new 3D graphics chip the company plans to introduce on Monday. Santa Clara, Calif., S3 said its Savage3D graphics accelerator will target the high-end of the PC gaming market. It is to begin shipping in small volumes in the third quarter, and production will increase to oeiginal equipment manufacturer volumes in next year's first quarter. The company is describing the product as its most important since its introduction of the ViRGE product line nearly three years ago. In recent quarters, S3 has seen dwindling sales from an aging product line in an increasingly competitive graphics chip market that now includes microprocessor giant Intel Corp. (INTC). Intel earlier this year purchased Chips & Technology. With the new chip, S3 hopes to alter its focus on low-end products and regain a foothold in the high-performance marketplace. It "does look like a pretty competitive device," agreed Elias Moosa, an analyst at BancAmerica Robertson Stephens. "I think it's an important product." S3 Director of Marketing Scott Tandy said the Savage3D will offer computer gamers improved visual clarity and resolution, along with more realistic on-screen motion. The chip takes advantage of new technologies, such as a trilinear architecture, which smooths the visual transition between objects at different distances from a viewer. It also has DVD acceleration technology. S3 sees the Savage3D as initially appropriate for use in graphics acceleration boards costing about $149 at retail. The product will be sold at $35 for quantities of 10,000. Moosa said the graphics chip will be more attractive to customers if S3 can get its dollar price in the mid-20s. Nevertheless, the product should enable the company to re-establish itself with traditional customers such as Diamond Multimedia Systems Inc. (DIMD) and Compaq Computer Corp. (CPQ), said S3 Chief Financial Officer Walt Amaral. Amaral said it should begin having a financial impact on the company in the fourth quarter.