To: Greg S. who wrote (13050 ) 5/31/1999 12:49:00 AM From: Marc Respond to of 16960
May. 28, 1999 (Computer Reseller News - CMP via COMTEX) -- San Jose, Calif. - Graphics processor maker 3dfx Interactive Inc. is shrinking its distributor pool and planning new VAR and systems integrator programs now that the company has completed its acquisition of add-on card maker STB Systems Inc. As a part of the acquisition, completed May 12, 3dfx will scale down the number of its distributors to four from about 15, said Richard Burns, vice president of channel sales at the vendor, based here. 3dfx's distributors now include Ingram Micro Inc., Tech Data Corp., Merisel Inc. and D&H Distributing Co. Inc. "[3dfx thinks it] can do a better job with fewer partners," said Bob McQuillan, senior research editor at Jon Peddie Associates, Tiburon, Calif. Scaling down distributors is a natural part of an acquisition, he added. 3dfx also will launch new programs specifically for VARs and systems integrators around July, said Michael Howse, senior vice president of worldwide sales and marketing at 3dfx. The company plans to do what is necessary to encourage systems integrators and VARs to use 3dfx products, added Burns. "We are just now starting to tackle all the different markets for our products," Howse said. The merged companies should operate more efficiently than individual entities, analysts said. "It lowers overall cost, and that makes an appealing proposition to the OEM buyer," said McQuillan. The company attributed its first-quarter loss to merger-related closing and legal costs, along with the launch of the Voodoo3. 3dfx is currently shipping the Voodoo3 3000 AGP, Voodoo3 2000 in AGP and PCI versions, and the Voodoo2 1000. The company recently unveiled the Voodoo3 3500 TV, a high-end card shipping in July.