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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: jgideon who wrote (12540)	10/27/1998 6:47:00 PM
From: Brad Patton	Respond to of 13925

Where are the revenues headed? Whenever I look at CREAF's numbers, I'm left wondering where the top line growth is going to come from. Here we have a quarter with major product introductions and yet the revenues are down from last year. OK, I know this was supposed to be a bad quarter for various reasons. But that didn't stop the boxmakers and the resellers from sequential increases. Actually Creative is showing a stronger quarterly sequential increase in sales than last year. 4Q97 1Q98 Increase % 280,066 287,766 7,700 2.75% 4Q98 1Q99 Increase % 253,009 278,989 25,980 10.27% Granted the fourth quarter 98 was horrible. Some other comments from the release. * Why the huge jump in SG&A? Increased advertising for SBLive. * The gross margin has improved from the 4Q's low of 26% to 29%. Still would like to see it in the low 30's. * Wish they would break out the sales for: Ensoniq/Cambridge Graphics/Sound/DVD/Kits * While reviewing the release I went though some old info. I had forgot they wrote off 60 million with the acquistions. This is about a .60 per share hit to 98 earnings. Granted they also included .19 from the TDDDF gains. * I am a bit concerned about the TDFX investment. I liked the fact they were diversifying the card line up with the RIVA TNT. I wonder if their relationship will be affected.