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.$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!
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.
The lawsuit 3dfx is talking about is one they filed in 1998, accusing NVidia of using 3dfx's patented multitexturing technology in the Riva TNT chip.<snip>
``NVIDIA's filing of a suit is clearly an attempt to force a settlement of our existing patent infringement lawsuit against NVIDIA, and we believe demonstrates a lack of confidence in their current defense,'' said Alex Leupp, president and CEO of 3dfx Interactive. ``We anticipate receiving rulings as to claim interpretation issues in our existing lawsuit shortly, and are committed to protecting our intellectual property and maximizing the financial benefits of our technology for our shareholders. We regret that NVIDIA feels compelled to resort to these kinds of tactics as a defense of the pending litigation. 3dfx intends to vigorously defend itself against this litigation.''
NVIDIA's lawsuit involves five NVIDIA patents and seeks an injunction restraining 3dfx from manufacturing, selling or importing infringing graphics chip and card products including VooDoo3, Voodoo4 and Voodoo5 and VSA-100 family of products, as well as monetary damages. The lawsuit alleges that 3dfx's graphics chip and card products which are used to accelerate 3D graphics on personal computers, infringe on the following NVIDIA U.S. Patents: No: 5,687,357; No. 5,721,947; No: 5,758,182; No: 6,023,738; and No: 6,092,124.
[snip]
``This innovation is achieved through the annual investment of hundreds of millions of dollars in research and development. We cannot allow the fruits of this investment to be misappropriated.''
They (3dfx) have a product (with sony) next year that will outperform the x box.
5:15 update: It looks like sony was just an example of a possible client, oh well.
There are a few other bits, like 50% of costs for boards is memory, and the V5-6000 is looking like it will ship at the end of next month. (Last word from 3dfx was July16th, which they missed)
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