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

To: VincentTH who wrote (10991)	3/5/1999 10:05:00 AM
From: Piranha	Read Replies (1) \| Respond to of 16960

I just found a way to get an HTML version of the PDF. The highlights are posted below. BBRS stands for BancBoston Robertson Stephens (sorry, thought everyone here knew that). Piranha ************************************** Key Points: 3Dfx made a strong presentation at the BRS Technology Conference. 3Dfx was the first graphics firm to market its proprietary Glide API to software developers for developing exclusive content, and this has met with great success. The company had 73% of U.S. retail units in Q4'98 with its flagship products. Voodoo3, the follow-on product is expected to launch at the end of Q1/early Q2. The company has also established an alliance with AMD as a graphics partner for the K6-3. ** The company believes that the acquisition of STB will further bolster 3Dfx's strong retail brand presence. The acquisition is expected to be completed in March. We urge investors to be patient until the financial picture becomes clearer after the consummation of the transaction. INVESTMENT THESIS: Our investment thesis on 3Dfx Interactive is based on thefollowing key factors: 1. Robust 3D Hardware Outlook: We believe that the market for multimedia is undergoing a crucial transition from 2D to 3D technology. Due to this transition, in our view, the 3D graphics accelerator market is at the beginning of a strategic inflection point, as it stands poised to grow at a CAGR of 75% through the year 2000, from a small base of about ten million units in 1996. 2. Strategy to capture mind share with content providers: The company's missionary work among software producers could become a strong value proposition for 3Dfx, in our view. As developers increasingly target the company's technology platform, 3Dfx could begin to build a more defensible hardware franchise as well. Capturing meaningful mind share in an emerging market by partnering with and enabling the system OEMs and content providers is a sound strategy, in our view. In addition, building a defensible franchise from the high-end could propel the company to gain market share rapidly in a market vulnerable to its advanced 3D architecture's award winning capabilities. 3. Strong Product Road Map: In our view, the lifeblood of a company lies in its products. We believe 3Dfx's product outlook features a potentially compelling mix of high-end and cost effective products, as it executes towards its product plans for Voodoo 2, Banshee, and beyond. Additionally, we believe that the company's product strategy to attack the high-volume markets from the more protected high-end markets could help set apart the company's products.