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

To: Rutgers who wrote (9391)	12/7/1998 10:16:00 AM
From: Obewon	Read Replies (4) \| Respond to of 16960

Being supply constrained is NOT a good thing for 3Dfx! Please do not forget that the Voodoo II was also supply constrained and led to extreme overordering (ala "The Beer Game") by boardmakers in 2Q98. While 3Dfx said in 3Q98 that they were putting in place a consumer demand monitoring system, they also said it wouldn't be in place until next year (around 2Q99). Having been burned just last quarter we would hope that 3Dfx is being VERY careful but I'm not sure the business systems are in place yet to prevent another bulged quarter. My questions currently revolve around how 3Dfx is addressing the capacity issues. It appears clear to me that the lack of other major OEM design wins is due to the fact that 3Dfx can't seem to produce enough AGP Banshee chips. If the company wants further inroads, where is it going to get the capacity available and how fast can it come online (or stop if demand gets out of whack)? Why is supply constrained?!? What kind of product demand forecasting is being done at the company and why are they so poor at it? OB