S3 Incorporated Reports Second Quarter 1998 Financial Results
July 23, 1998 04:15 PM
SANTA CLARA, Calif., July 23 /PRNewswire/ -- S3(R) Incorporated SIII today reported that net revenues for the second quarter of 1998 were $53.3 million compared to $84.6 million* for the second quarter of 1997. Net loss was $11.6 million for the quarter, or $0.23 per diluted share compared to net loss for the same quarter last year of $1.8 million*, or $0.04 per diluted share.
"During the second quarter of 1998, we were severely impacted by the overall softening of the Asia market and decreased demand for our older 2D and 3D products," said Terry Holdt, president and chief executive officer of S3 Incorporated. "As a result, we have reduced our work force by 20 percent and are working toward bringing our operating expenses more in-line with revenues. At the same time, however, we are continuing to invest in our product development programs. Moving forward into the third quarter, we are currently ramping up volume production of our high-performance Savage3D accelerator and have recently announced Savage3D design wins with Diamond Multimedia, STB Systems and Hercules."
About S3 Incorporated
S3 Incorporated, founded in 1989 with headquarters in Santa Clara, California, is a leading supplier of multimedia acceleration hardware and its associated software. S3 is committed to applying its expertise in graphics and video and platform acceleration to create innovative and affordable products for the home, desktop and mobile markets.
Except for the historical information contained herein, the matters set forth in this press release are forward-looking statements that are subject to risk and uncertainties that may cause actual results to differ materially, including the impact of competitive products and pricing and of alternative technological advances, the ability of the company's foundries to ramp Savage3D to volume production, market acceptance of the company's new products, and other risks detailed from time to time in S3's SEC reports, including its Annual Report on Form 10-Q for the quarter ended March 31, 1998. These forward-looking statements speak only as of the date hereof. S3 disclaims any intent or obligation up update these forward-looking statements. S3 is a registered trademark of S3 Incorporated.
NOTE: The S3 corporate logo is a trademark of S3 Incorporated. Other marks referenced herein are the property of their respective owners.
* Restated
S3 INCORPORATED
CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)
June 30, December 31,
1998 1997
(unaudited)
ASSETS
Current assets:
Cash and investments $152,585 $117,670
Accounts receivable, net 22,188 60,713
Inventories, net 47,278 71,882
Prepaid expenses and other 55,036 51,172
Total current assets 277,087 301,437
Property and equipment, net 39,908 46,628
Production capacity rights 4,800 4,800
Investment in joint venture 77,002 104,465
Other assets 57,713 35,524
Total $456,510 $492,854
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $30,552 $42,819
Notes payable 13,805 26,717
Accrued liabilities 8,721 10,987
Deferred revenue 1,071 10,921
Total current liabilities 54,149 91,444
Notes payable 4,800 4,800
Other liabilities 28,457 22,270
Total liabilities 87,406 118,514
Convertible subordinated debentures 103,500 103,500
Stockholders' equity 265,604 270,840
Total $456,510 $492,854
S3 INCORPORATED
STATEMENTS OF OPERATIONS
(In thousands, except per share data )
(Unaudited )
Three Months For the Six Months
Ended Ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
Net sales $53,299 $84,589 $135,806 $214,844
Cost of sales 46,807 59,706 113,636 139,526
Gross margin 6,492 24,883 22,170 75,318
Operating expenses:
Research and development 18,334 21,029 40,367 39,971
Selling, marketing
and administrative 10,643 13,502 23,137 26,132
Write-off of acquired
in-process technology -- -- 8,000 --
Total operating expenses 28,977 34,531 71,504 66,103
Income from operations (22,485) (9,648) (49,334) 9,215
Gain on sale of
manufacturing joint venture -- *- 26,561 --
Other income (expense), net (4,193) (279) (4,185) (271)
Income (loss) before income
taxes and equity in income of
manufacturing joint venture (26,678) (9,927) (26,958) 8,944
Provision (benefit)
for income taxes (11,205) (3,814) (11,956) 3,254
Income before equity in
income of manufacturing
joint venture (15,473) (6,113) (15,002) 5,690
Equity in income from
manufacturing joint venture 3,839 4,347 7,489 6,926
Net income ($11,634) ($1,766) ($7,513) $12,616
Net income per common
and equivalent share:
Primary ($0.23) ($0.04) ($0.15) $0.26
Fully Diluted ($0.23) ($0.04) ($0.15) $0.24
Common and equivalent shares
used in computing net
income per share
Primary 50,985 49,201 50,793 48,937
Fully Diluted 50,985 49,201 50,793 51,518
SOURCE S3 Incorporated
Top
Terms of Use, and Privacy Policy. c 1996-98 Microsoft Corporation and/or its suppliers. All rights reserved.
c 1998 PR Newswire. All rights reserved.
|
