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

To: Scott Garee who wrote (12684)	5/18/1999 1:18:00 PM
From: Sun Tzu	Respond to of 16960

>> TDFX mission is to dethrone ATI and be #1. It's nice to have big dreams :-Q but I've seen nothing from 3dfx that suggests they can deal with tactical issues or execute as well as ATI, let alone well enough to dethrone them. In addition, ATI makes most of their money from office computers, whereas 3dfx is geared towards the gamers. So the strategic direction which prompted this statement is unclear to me. >> want ~25M shares outstanding going forward This implies another share offering. >> GM on V3 > 30% Combined GM is 23.3% (versus 30.9% from last year). See below for more details. >> expect OEM revenue may be above expectation So what are the expectations? >> expect better margins through rest of year One of few good statements I heard. Are they talking about gross, operating, or net margins? Here are the combined numbers for 3dfx and STB. Granted, one of them is from Feb~Apr and the other is from Jan~Mar. And V2 was released mid Feb last year, but then again V3 was released this year. So it may not be apple-to-apples comparison, but it is apples-to-ApplePear comparison <g> Combined 3dfx-STB numbers from the recent quarterlies (3mo 99 VS 98) Revenue 131 vs 123.8 GProfit 30.5 vs 38.2 GMargin 23.3 vs 30.9 Shares 24M vs 23.3 Sun "still evaluating" Tzu