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

To: Michael G. Potter who wrote (9286)	11/27/1998 8:24:00 PM
From: Synapsid	Read Replies (2) \| Respond to of 16960

There is a lot of detail in the prospectus from NVIDIA. They give the actual sales to Diamond, Creative and STB in the last quarter as well as the accounts receivable from each of these customers, as well as a fourth major customer (12% of accounts receivable), as of Oct 25. Anyone want to guess who this fourth customer is, perhaps Asus? The STB receivables figure seems to be somewhat on the low side compared to sales (26% vs. 40%), while it is 33% vs. 28% for Diamond and 19% vs. 12% for Creative. Could this mean that STB is seeing lower than expected OEM demand for their TNT product? There's no mention of supply constraints for the RIVA TNT in the latest quarter. Given their accounts receivable of $36M (compared to 3DFx's $26M a month earlier) and $48M of inventory purchase commitments, it doesn't seem unreasonable to predict continuing revenue growth for the next quarter, which would indicate a substantial profit.