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


To: Patrick Grinsell who wrote (7285)9/16/1998 3:05:00 PM
From: Michael Linov  Read Replies (1) | Respond to of 16960
 
Neither 3dfx, nor anyone else, can give earnings estimates for next year. 3dfx is spending the money now, for a powerful, and comprehensive product family next year. It's a whole new game with the OEM market. We'll now have many new markets (Business OEM, gaming OEM, gaming legacy upgrade, and high-end gaming) by march next year. This will result in whole new revenue streams, while still maintaining some of the traditional bread-and-butter money earners. I see nothing but good things ahead.

If 3dfx didn't spend its money on R&D, I would dump this stock in 5 mins, and never look back. The future of 3dfx is in the evolution of its products and future returns,not in making a quick buck this year.



To: Patrick Grinsell who wrote (7285)9/16/1998 3:23:00 PM
From: Scott Garee  Read Replies (2) | Respond to of 16960
 
They are reducing cycle times.

Haven't they stated that they plan on releasing a new chip every six months? This would require 2 complete design teams, thus significantly increased R&D costs. Even then, a one year cycle might be hard to keep up per team.