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

To: Michael Linov who wrote (8054)	10/8/1998 7:46:00 PM
From: Michael Linov	Read Replies (2) \| Respond to of 16960

More Q&A from DIMD conference call (my transcript - contd.) $3M going to AURL 3d quarter? How much of Backlog is Viper 550/Fusion Banshee? V550 Shipped Sept 15-22? Fusion shipped a little later. Substantive portion of backlog around viper and fusion. Q4 re reo (MP3 walkman)? Digital Cast was developer MP3 industry standard for music on net Price 199.95 1 Hour music (upgradeable to 2) (how much ram?) Size of Pager, no moving part Flash RAM (secured enough qty) (ed. note: Another overpriced memory purchase?) Relationship with MP3 sites. Customers in channell for all shipping capacity Planning to sell $10M worth in 4th quarter. Grow by 50% more in 1st qtr. Markdowns/Price protections Pricing pressure in Core Graphics segment/Entertainment graphics. Monster II shipments exceeded demand. Lots of pricing competition. Monster II Most of it. $10-$11M Price protection, remainder older graphics cards. Unit Mix Between Fusion/Viper: Viper TNT High-End Product line Banshee-Consumer enthusiasts Will do very well, large following for 3dfx product. They expect volume to be similar, but expect TNT to be a little more. Some OEM design wins with TNT. They still have V2 inventory. 4th quarter strong for V2 (expect strong till feb.) , but don't expect many new orders for V2 despite this (due to competition from TNT and Banshee). No Stock Buybacks. Best place to use cash is to grow business. Switch to Oracle system better EDI relationships with channels and custoemrs. Reduce channel inventory to (4-6 weeks). Working with suppliers to establish hubs, and moving to turnkey. More manufacturing in China. Compaq qualified IMS in china for producing one of their products. OEM down this quarter, retail up. about the same as in past. Inventory level of Monster II where they want to be ??? 12 weeks? Sales slow during summer months, expect higher during next quarter. Inventory higher than they want it to be. Cautious about adding invetory (certainly manageable during 4th quarter). Word for 4th quarter is bullish, but actions (orders?) are cautious. On new products, the retailers are excited, but conservative in financial planning. Want to work with fewer/larger vendors to reduce risk. Guarded optimism. No speculative buying. OEM segment more pessimistic than necessary (recently). Forecasts were pessimistic, actions are optimistic. OEM Design wins for fusion? Marketing strategy between TNT and Banshee. 1 or more Q4 for fusion. Fusion is integrated 2D+3D+Glide, Monster 3D II Absolute fastest 3D Add-ins, will hold through Q4, Q1, Fusion is for casual gamers. Fusion to OEM as an OPTION. Price points/cuts vs. Creative Labs. Disregard creatives model. Don't feel they have to meet price difference, since they're "value added", and won't engage in a price war.

To: Michael Linov who wrote (8054)	10/8/1998 7:51:00 PM
From: Paul A	Respond to of 16960

I really wouldnt worry about DIMD having any effect on TDFX... The market is a very different animal these days and besides, this is already built into the price (tdfx) as they were the first ones to help our stock price decline. DIMD is another issue all together.. They missed and missed big and will be trading where they belong, just below $3... Investors are looking into the future for TDFX and thats the only reason its trading at $9 because they actually HAVE a future if things could fall into place. Market will rally big tomorrow. or should, after what happen today. TDFX will move up with the market. Lets be real, anyone who wanted to sell has already sold and Im betting that since we held 10-11 over the last week of carnage on the nasdaq, it was only to be expected that yesterday and today some of those who bought in just after the earnings warning would head for the hills to better, greener pastures. im back.. not for long.. TDFX will gap to 9 1/2 at open, close above 10.. DIMD is irrelevant this time no matter how hard they tried once more to hurt us for their mistakes..