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

To: Mike Sesan who wrote (5190)	7/9/1998 11:47:00 PM
From: Peter Piper	Read Replies (1) \| Respond to of 16960

From Diamonds earnings announcements... Also from another unrelated article, the concern is too much product stuck in the inventory channel. I'm sure this is what the analysts will be questioning during next weeks earnings announcement. I will dig around and ask my contacts what's happening in the distribution channels. Peter Piper (your electronic plumber) Throughout the quarter, Diamond projected "roughly breakeven" results, but sales of the highly-regarded -- and high margin -- Monster 3D II card fell near the close of the period and ended $20 million below expectations, said William Schroeder, president and CEO. And the company wasn't ready for pricing wars that cropped up in the last few weeks. "Driven by response to competitive pressures in graphics late in the quarter, we spent or accrued approximately $3 million in unanticipated, incremental, [reseller] channel-related costs, including market development and co-op funds and channel sales incentives," Schroeder said. Diamond said it did gain market share in some sectors, including modems and audio products. Although the company expects revenue to be flat next quarter, margins should improve, said chief financial officer James Walker. Upcoming new products and traditional strength in the fall should produce a good fourth quarter, he said.