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

To: Patrick Grinsell who wrote (12121)	4/29/1999 12:15:00 AM
From: Jeff Lins	Read Replies (1) \| Respond to of 16960

So, how long do we think they have been making boards? I think that going into earnings 2 of past 4 months should have been at full capacity, approx 1 million boards. Could it be longer? Perhaps they finshed the board design earlier, were confident in it, and started whacking out cards in Feb, resolving the driver issues and building up enough inventory for a launch to satisfy everyone? For the "investors" of TDFX (the rather unfortunate group known as the Iron Stomach Brigade) the pullback is a good thing. As Michael mentioned, the lower the price when the deal goes through, the smaller the goodwill, the lower the quarterly amortization expense. ---------ot--------- Yeah, I know Sun, you made a thread for this :) But I thought I would share this with the "family"........ Sulu: Captain, we are getting unusually high readings in a certain account. Kirk: Readings, what kind of readings? Sulu: It appears that a "Jefflins" has been outperforming a market known as "the street" Kirk: Outperforming the street? My God. Scotty, any ideas? Scotty: Aye, capt'n. We've already reduced TDFX by nary 30%. And she's still movin' up! Kirk: why? WHY? People, I need answers! Spock: It would appear, Captain, that after many months of turmoil, an entity known as FORE has substantially increased the numerical reading of this "account". Kirk: I see. And what can we do to bring this...account...back in order? Sulu: I suggest a restatement of earnings by McKesson. Spock: Fascinating. Jefflins: Oh sh&t! ------------------- Yes, folks, the cosmic bakers must maintain "account equilibrium", or so it seems. MCK dropped a bomb on me today...I just couldn't believe it! So I dumped some Cendant and bought more MCK (a certain irony there)...please let TDFX have a great quar...trimester! Doing the best to keep my sense of humor...

To: Patrick Grinsell who wrote (12121)	4/29/1999 12:31:00 AM
From: Michael G. Potter	Read Replies (2) \| Respond to of 16960

Pat, A certain amount of merger expenses are considered to be part of the deal and are treated as part of the purchase price. I'll be back in Kansas tomorrow and I have all the accounting pronouncements in a database on my home computer so I'll look uo the rules and post here. I'm expecting 3dfx do do a certain amount of "In Process R&D" expensing as a result of the merger. That results in a big one time hit that the street normally ignores and which improves earnings downstream because there is less goodwill on the books. The SEC is cracking down on this, however, so there is less room to do this. I think that 3dfx will report as a combined entity for Q1 once the merger goes through. I've seen a few posts speculating that they'll release earnings on the same day. That would be fastest close in history, especially for a newly merged company. That won't happen. I bet that they have a target date set, but will hedge their bets and allow it to slide if their Controller needs more time. Michael