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

To: Joe C. who wrote (7160)	9/14/1998 11:37:00 PM
From: Joe C.	Read Replies (2) \| Respond to of 16960

O.K. Now for a little math: Let's take a stab at revenues given what is known "lose several million dollars" - man I hate this nonsense: Last qtr operating expense was 16.3 (includes R&D and selling). Let's assume these new ad boys brings the bill up to 18. Last qtr. profit margin was 48%. Using this margin, revenues would need to be 37.5 million (18/.48) to break even (compared to revenues of 58.6 million last qtr.) - They've stated that they would drop prices by about 5% so let's say 3rd qtr. margin will be about 45%. Using 45%, revenues would need to be about 40 million to break even. Any way you look at it, this means a fairly significant drop in sales. I'm comfortable with the 18 in operating expenses and doubt it would be much higher. They've probably held their margins and will come in between .45 to .48. Of course this is all guess work given the lousy press release. Weather forecast for NYC is rain - can't stay in, can't go out, can't seem to get a break. Joe C. P.S. FWIW I'm not selling at these prices but I don't know how long I'll stay in when and if it turns around. I might have to do a little tax loss selling :(

To: Joe C. who wrote (7160)	9/15/1998 12:13:00 AM
From: Paul A	Read Replies (3) \| Respond to of 16960

Hey Joe... Wow... Just noticed the news.. I have no position but you know this hurts regardless. Alot of folks have big money in this company thanks to me and their going to be very unhappy come AM tomorrow.. Good luck folks, and do what you need to do. Should be Very interesting to see how well the company covered their asses legally. I think theyre in deep. Just an opinion. JUST an opinion. Management spoke too often with the average investor and made very liberal forward looking statements.