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

To: Stickboy who wrote (10369)	1/29/1999 9:15:00 AM
From: Michael G. Potter	Respond to of 16960

That's been my view as well. STB brings long established ties with the OEMs and the ability to service them. There's no reason why 3Dfx has to keep investing in capital resources to actually make the boards. Having your own, fully utilized capacity is great, you have the flexibility to ensure that you meet your most important customer commitments. The videocards themselves are not all that complicated at manufacture could be outsourced. I'm waiting to see the S-4 so I can understand the advantages to owning the board making capability. Their 10-K says this about the matter: CONTROL OF MANUFACTURING. We believe that we are the only major independent supplier of multimedia accelerator subsystems that manufactures all of its own products. We believe that operating our own manufacturing facility that incorporates automated SMT in Juarez, Mexico enables us to maintain lower manufacturing costs, to meet expedited customer delivery schedules, to adjust quickly to changes in product orders, to achieve shorter production cycles and to accommodate modified or unusual design specifications. We also believe that operating our own manufacturing facility ensures product quality and reliability. Michael