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

To: Patrick Grinsell who wrote (7304)	9/16/1998 5:45:00 PM
From: Mark K.	Read Replies (1) \| Respond to of 16960

<<It took a year and a half to produce Voodoo2 which was essentially a Voodoo1 ZX. Yeah, Banshee was cool but they had the VGA part working since 1996 and the 3d part is borrowed from Voodoo2. Where the hell is all that R&D money going?>> That pretty much sums it up. Kind of reminds me of Sega when the 32X came out and then the Saturn. If either product had made it to the market earlier it would have made money.

To: Patrick Grinsell who wrote (7304)	9/16/1998 6:12:00 PM
From: Michael Linov	Read Replies (4) \| Respond to of 16960

Actually, I suspect we will sell more V2's, but the margin won't be there. The Banshee/Banshee 2/Rampage will have to make up the balance. IF the Banshee proves to be a good OEM design, the road will be open for many future deals. The OEM part should deliver a steady (and less seasonal) cash flow which should make everyone happy. Nothing in life is certain, but I have not lost faith in 3dfx's ability to pull through. Once we have steady income, and a family of products, I want 3dfx to concentrate on the stock price. It is clear to me now that most of the investors we've had so far are in it for the fast buck. If so, you've picked the wrong stock. While Investor relations have sucked thus far, I see now that they would have done little good, and that little earnings bombshell was the best thing that could have happened to 3dfx. Like it or not, its a long road to the top. 3dfx has to grow at a sustainable pace, expand its product lines, acquire key companies. This won't happen overnight, and there may yet be many quarterly losses ahead. This is the beginning, and any short term predictions would be little more than gambling. The long term, though looks bright.