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

To: Michael G. Potter who wrote (12677)	5/18/1999 9:41:00 AM
From: JAG	Read Replies (1) \| Respond to of 16960

Any new news on OEM wins out of the conference call?

To: Michael G. Potter who wrote (12677)	5/18/1999 9:52:00 AM
From: Obewon	Read Replies (1) \| Respond to of 16960

Assuming that all of 3dfx's revenues came from STB (not realistic but it could be close to 90%): Proforma for combined company gross margins = 33%. R&D expense = 15% Sales & Marketing= 19% G&A = 3.5% Next quarter should see Sales and Marketing expense drop about 6-7% as advertising is combined and reduced from the Voodoo3 launch. R&D could be reduced maybe 1-2% depending on integration of board and chip design teams. For the company to take-off, gross margins MUST improve which will be difficult since fab capacity issues will probably drive up COGS. And of course, sales must continue to increase at 20-30% growth or better. Obewon