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

To: Patrick Grinsell who wrote (10221)	1/24/1999 10:55:00 PM
From: Joe C.	Respond to of 16960

Patrick, the flip side is STB is now getting much more retail sales on TDFX parts (as per PC Data). If STB is going to pick up the lagging V2 and Banshee sales that others walk away from, they would be justified in ordering the chips in quantity. Both boards will have life after V3 albeit at a lower price point. TDFX & STB could both take a small hit on their margins to keep selling the boards at a decent profit. Let's not forget that TDFX wrote off those V2 chips from their V2.5 fiasco. What was the magic volume number on those chips - I don't recall - but if they sold 1/2 million V2's this quarter - I'd have to imagine that they could sell quite a few more at the under $100 price level - this might bring them close to where they start using those chips which cost $0 since they've already been written off. Do you remember the details. Bottom line is that TDFX/STB is in a position to start enjoying the benefits of consolidation pre-April official date. This would be real dollars and not accounting gimmicks - although maybe selling those v2.5 written off chips might fall into that category ;) Joe C.