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

To: Greg S. who wrote (5169)	7/9/1998 4:04:00 PM
From: David R. Parker	Read Replies (2) \| Respond to of 16960

Here is a very informative post from the Yahoo board...the author is a regular poster and seems reliable.... _ Ok, so after all of my whining about the internet stocks, what say I give you something good. Just got off the phone with Dave Zacarias, and here is what I have for you: -still reporting on 7-15 -V1 selling a little slower than expected; this is due mostly to such great demand for V2. Upshot: rev % and chips shipped % will both be very high in V2's favor -Rush sales pretty negligible -ASP of V2 between 45-50; was likely higher in Q1 (probably th 55 JPA quoted) -ASP of V1 around 20 -Re: 5 millionth chip: got a little bit of a laugh (lots of phone calls for him on that one). He seems to think that 5MM is a bit high -contract with TSMC is US dollars on a PO basis (no long term contract); they are pushing for lower costs, and seem to get a bit out of them now and then. -cost of goods: margins should be similar. Look for approx 5% decrease in selling price of V2 per quarter, and they work hard to get TSMC to get similar cost reductions -lower board prices are due to competition and reduced cost of EDO memory -likely to see similar high number for inventory on Bal sheet; for work in process, chips etc. -likely to see much lower number in A/R; turning the accounts much more quickly (no large sales at end of quarter like there was with V2 at end of Q1) -Banshee will likely be "closer to $30 than $40" per chip in volume -goal is to have high margin Voodoo and low margin, high volume Banshee -just opened an office in Austin. He said they are trying to attract more "techies" from outside of the Valley. I said that Austin is a good place to be to build relationships with boxmakers. He laughed and said that that was true. -confident of OEM possibilities, but couldn't say more. -demand seems steady, sell through is very good. -Banshee is on time and boards should be available at retail by end of quarter -2x agp will be end of year, though he mentioned Q1'99 -shouldn't see any big spikes in expenses -should see "new" marketing beginning end of Q3- begin of Q4 That's it for now! Hope it helps! Jefflins _ Regards, David ÿ