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

To: Obewon who wrote (12520)	5/13/1999 11:46:00 AM
From: Piranha	Read Replies (3) \| Respond to of 16960

DAMN!! You stole my thunder! Actually, it was more the fact that my browser crashed as I was trying to print the report and I decided it would be best to reboot. Here are the important points: 1. Unfettered, New Mission Focus. The technical aspects of the acquisition are now complete - the company faces no further SEC restrictions our legal hurdles. 3dfx is now focused on developing and delivering products, strengthening the 3dfx/Voodoo brand, and developing its PC OEM customer base. 2. New Market leader. Since the launch of Voodoo3, 3dfx has become the leading manufacturer of PC graphics boards in the retail channel. Previously, the company was the leading provider of accelerator circuits for the narrower performance/gaming card segment. 3dfx/STB captured more than half of all retail revenue in the retail channel in the first three weeks of April. 3. More Powerful Voodoo. We believe the new corporate structure will strengthen 3dfx's control of the 3dfx Voodoo brand. The 3dfx logo will from this point forward be the central feature of product packaging on retail shelves. We believe 3dfx accelerators and Glide compatibility have been major selling points for the company's board customers in the past. In our view, the company's vertical integration will enable it to address its end-customers directly with a sharper, cleaner message. 4. Better Access to OEM Market. We believe STB can port its strength with key PC OEM companies to the new 3dfx. In recent years, more than 80% of STB's revenue has come from business with the top four PC manufacturers. More than half of all graphics accelerator chips are sold through the top 10 PC companies. 5. Greater Financial and Technical Efficiency. The union of 3dfx and STB should eliminate inefficiencies and improve margins on board sales. The tight integration of future chip and board designs should lead to technical improvements that should produce a competitive advantage for 3dfx, we believe. 6. We reiterate our Buy rating on TDFX shares. The merger of 3dfx and STB has a dramatic effect on our 3dfx earnings model, essentially creating a new company with strong revenue and earnings growth. Our new EPS estimates for F2000 and F2001 are $0.89 and $2.90 per share. Our new price target is $40 per share. There's a more detailed discussion following these points but they give you the gist. Piranha

To: Obewon who wrote (12520)	5/13/1999 11:57:00 AM
From: Obewon	Respond to of 16960

Details of DLJ Report: No change to rating. They reiterate TDFX as a BUY. new ?? Month price target= $40 new Q299 EPS estimate = $0.07/sh new FY2000 EPS estimate = $0.89/sh new FY2001 EPS estimate = $2.90/sh (WOW!!!) DLJ cites 1) Unfetter, New Mission Focus (merger is complete!) 2) New Market Leader (3dfx is retail channel market leader, captured more than half of all retail card sales in first 3 weeks of April) 3) More Powerful Voodoo (branding effort is helping the company) 4) Better Access to OEM markets (more than half of all accelerator cards are sold by to ten PC OEMs, STB's relationships with top four OEMs will help open these markets) 5) Greater Financial and Technical Efficiency (integrate design with manufacturing) Overall, very little new info here except for the knowledge that the Street is watching. Obewon