3dfx In A World Of Pain
by Jack Mathews, Aug 29, 2000 3:13pm PDT3dfx 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!
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Comments
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The worst part is that it set them back a design cycle. Had they been working on designing chipsets rather than the actual product, they would still be number 1. They wouldn't have had to work on integrating companies.
To top it off, they made bad design choices. Lack of 32bpp color to compete with the TNT was a really bad idea. Yes, people want frame rate, but if they can play with purdy colors, they'll be just as happy at a lower resolution.
And lastly, as another really bad idea, they went with single source manufacturing. All of the fab companies that produce their own boards (S3, ATI, Matrox, etc.) are CONSTANTLY a design cycle behind NVIDIA. NVIDIA doesn't have to worry about distributing or actually producing. High volume chip manufacturers are much better equipped to pump chipsets out faster (like ASUS, ABIT, etc.) and get them to market as soon as possible.
3dfx's main problem comes down to poor management decisions. At the time, it seemed like the right idea to join with STB, but the market was cut right out from under them.
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Hey, nVidia has to strongarm *someone*
Its frivolous bullshit.
They can go suck a dick for all I care.
181: because its fun.
188: Same thing happen with my father-in-law. I talked him into buying AMD. It lost a little and he sold it. Then the Athlon came out. I tried to get him to buy Nvidia but he wouldn't. Needless to say, I don't take guff for my finaical planning anymore from him.
I fully expect 3dfx to go out of business. Their current product is a total loss, and historically they've been over a year late with new products..
Time's up, 3dfx. Time to pay for all those boneheaded design decisions you made earlier.
"Why do people get so worked up over things that play no vital role in their lives? You know what I'm talking about: people who curse out other people because of their choice of video card, guys who adamantly defend video game X over video game Y, and readers who post hundreds of profanity-filled messages regarding their love / hate for a certain brand of product. To a lesser degree, the same thing occurs in sports, with fans of a particular team getting into fights (and sometimes even killing) opposing fans. Why do people attach their egos to a product or entity that they have no real relationship with? "
Couldn't say it better myself.
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All companies take advantage of lack of competition. A word of advice: Video card companies don't give a fuck about you. They just want your money. Think about that next time you want to defend 3dfx or nvidia blindly.
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EAX=6b006300 CS=0167 EIP=7aead088 EFLGS=00010206
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Lets hope they can stay alive and compete
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32-bit color owns you.
Boycott Nvidia for their stupid DMA patent suit! Boycott 3dfx for their stupid Multi-texturing patent suit!
Hahaha... I love this. Now THIS is comedy.
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it was too slow on any other card.
Nvidia do overcharge
3dfx do keep making stupid mistakes
damnit i only got 19 points :( i was never a big final doom fan though.
plus i dont remember how to axs the secret on episode 2, but idont recall it being a big open level.
infact, i really remember very little of episode 2.
i do recall the secret level, but how to access it, well mmm
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these $500 cards are rediculous, I don't know how many of you are millionares but I sure can't/won't pay that much for one component
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Apparently 3dfx is going to start selling chips again and lessen the focus of the board manufacturing(STB) division. They may possibly sell the Juarez plant and subcontract the manufacture of boards there.
The Rampage is looking like the big thing to bring 3dfx back to profitability. They say that the developers are extremely excited about it.
They appear to have a credit line facility almost in place and they still have 41 million in cash and inventories/receivables to borrow against which should keep them going for at least a few more quarters.
I think the big thing is for 3dfx to be able to deliver the Rampage in a timely manner. If they do so, they seem positioned to return to profitablity. If they don't well, they will die.
I'm just trying to decide if I should buy some 3dfx stock... it is going for 4 7/8's in after hours trading. It almost has to go up again. This could be a decent gamble to make some green... or of course a way to lose some money.
I think I'll load up on the stock when it hits $3 a share...
hehe
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ouch
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anyone know when the shacks cs server will be back up?