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3dfx In A World Of Pain

by Jack Mathews, Aug 29, 2000 3:13pm PDT
Related Topics – 3dfx

3dfx just annouced their results for the quarter ending July 31, 2000 and the net loss was (drumroll please) $100.5 million. Here's a piece of the press release:

This resulted in a net loss of ($100.5 million), or ($3.81) per share. This compares to a net loss of ($11.6 million) or ($0.50) per share for the quarter ended July 31, 1999. For the six-month period ended July 31, 2000, the company reported revenues of $175.6 million as compared to $145.3 million for six month period ended July 31, 1999. Net loss for the six months ended July 31, 2000 and 1999, respectively, were ($112.9 million) or ($4.44) per share, and ($13.8 million) or ($0.71) per share.
$66.2 million of that loss was the one time expense of buying out GigaPixel. But doing the math yields that the net loss the quarter before last was only $12.4 million, so if the buyout handn't have happened, 3dfx still would have lost nearly 3x more than just a quarter previous. Also, according to some posts on the Motley Fool boards (thanks Rod), the conference call had the info that 3dfx will be selling their board manufacturing business and sub-contracting it. Also that the Voodoo5 sales were disappointing. Sounds like that STB merger was really a winner!




Comments

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  • What you consider a resonable price for a vid card is irevelent. These "Ultra" cards cost a lot to make and serve a very small market. Therefor they must charge more to turn a profit. Sure Nvidia stuck it to us with the GeForce prices, but what did you expect them to do? Just lower prices for no reason at all (BTW the jacked up GF prices are as much the vault of the card makers as Nvidia)? Yeah right, which is why we need competition. But at this point 3dfx does not look like the company to provide it, rather ATI looks like a much more formitable competetor with thier Radeon. And Matrox should be coming out with thier new chip fairly soon. Yes, Nvidia (or any other company) having a monopoly is A Bad Thing, but that is far from becoming a reality so don't get your panties in such a wad quite yet.