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

To: Michael G. Potter who wrote (8311)	10/16/1998 12:03:00 AM
From: Eric Howard	Read Replies (2) \| Respond to of 16960

Michael When you talk to 3dfx can you ask them about Windows certification and when their next retail product is going to come out. I doubt they will answer either but I cannot believe these questions were not asked. Personally I think the stock will open lower tomorrow so maybe that will be the final push needed for it to rally. Ballard did a good job selling a bad quarter but he is asking for alot of faith. Nvidia maybe overhyping and having yield problems but in the market I do not see evidence of it. You can get TnT cards today in Dell, Gateway, and Micron as well as in Gaming PC manufacturers. I realise that Banshee does have any big OEM deals announced but it is a little disturbing to not see them as an option in Alienware, Falcon or any of the Gaming PCs. These systems all seem to be using TnT. Judging by what you see in the market place TnT would not seem to have yield problems. In the conference call they mentioned once again that the new Banshee would be an OEM only part. This along with their desire to cut down on Voodoo2 inventory gives me hope that there will be a new high end commercial product early in the year. If there isn't why make a 125Mhz Banshee an OEM only part. Even with only one TMU it would be superior to a 90mhz Voodoo2 on most games. The only reason I can see as to why they would not introduce it to retail is if they had something better at the same time. Another question is why open a design center in Houston? AMD is in Austin and Cyrix is in Dallas. Are they any hi-tech companies that people know of that are based in Houston that they would be likely to be pairing with? If it opens down I will buy some more, otherwise stay with what I have. Eric

To: Michael G. Potter who wrote (8311)	10/16/1998 6:39:00 AM
From: Joe C.	Read Replies (1) \| Respond to of 16960

Michael, Your explanantion about the fixed versus variable costs was right on. I forgot that cost of goods sold contains both components and its' now obvious to me why the margins would look so bad given the sales drop. DIMD ordered 10% of the chips that they had committed to order for the quarter. I'm glad CREAF is suing them. One comment that Greg made implied to me that he felt some board makers may not have a good handle on their inventory and sell through. He didn't say it but it had the look and feel of DIMD all the way. Could you imagine what would have happened to them if they pulled this with an OEM (I ran out of boards for you to put in your box - sorry). Joe C.