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

To: Don Earl who wrote (11911)	9/3/1998 11:06:00 PM
From: Don Earl	Respond to of 14577

Some answers back from IR: Q. How exposed to current market conditions are S3s cash assets? I'm under the impression that most short term investments are in the form of money markets and bonds, which shouldn't be doing too badly, is this correct? If possible, could you express what percentage of investment are in the form of mutual funds tied directly to the stock market? A. WE ONLY TRADE IN HIGH GRADE SECURITIES MOSTLY GOVERMENT TAX FREE BONDS. SINCE WE HOLD EVERYTHING TO MATURITY WE HAVE NO EXPOSURE. Q. Recent government reports suggest that durable goods orders for electronics, including semiconductors and circuit boards, are up in recent months. Are you seeing a correction to over supply problems experienced in Q2 and a similar increase in demand for graphic chips? A. WE ARE NOT SEEING IMPROVEMENT IN DEMAND. Q. The Q2 conference call stated that S3 didn't expect to see much revenue from Savage in Q3. A recent press release suggests that ramping up to volume production was accomplished in record time. Is the statement that Savage revenue will be minimal this quarter still accurate? A. YES, WHILE IT IS RAMPING, IT STILL IS NOT EXPECTED TO TO GENERATE A LOT OF REVENUE FOR S3 THIS QUARTER. Q. The conference call also mentioned a restructuring charge to be taken in Q3. Has an estimated dollar amount been assigned to that charge that is available to the public, and if so, how much is it? A. WE ARE STILL IN THE PROCESS OF DETERMING THAT. WE WILL NOT MAKE IT PUBLIC UNTIL WE REPORT Q3 EARNINGS. Not exactly sweetness and light, but probably not unexpected either. FWIW, S3 is the only company I've ever seen that gives straight answers without any kind of snow job. Q4 anybody? I still don't think it deserves to trade below book.