FOR IMMEDIATE RELEASE
3DFX INTERACTIVE ANNOUNCES 1st QUARTER 1998 FINANCIAL RESULTS
3Dfx Posts Another Record Quarter; Revenue More Than Doubles
Over Previous Quarter
SAN JOSE, Calif. – April 16, 1998 – 3Dfx Interactive™, Inc.
(Nasdaq:TDFX) today released today financial results
for the first quarter of 1998, which ended on March 31, 1998.
Revenues for the first quarter rose to $50,008,000, an increase from total
revenues of $22,297,000 for the fourth quarter of
fiscal 1997 and $5,247,000 for the first quarter of fiscal 1997. Net income
for the first quarter was $7,462,000, or $.50 per
diluted share when 15,012,000 shares were used in the per diluted share
calculation. This compares with net income of
$2,072,000 or $.15 per diluted share in the fourth quarter of fiscal 1997,
when 14,127,000 shares were used in the per diluted
share calculation, and a net loss of $1,161,000 or a loss of $.13 per
diluted share in the first quarter of 1997. 9,226,000 shares
were used in the per diluted share calculation.
3Dfx Interactive, develops high performance, cost-effective 3D media
processors, software and related technology that are
designed to enable a highly immersive, interactive and realistic 3D
experience across interactive electronic entertainment
platforms – personal computers, coin-operated arcade systems and
location-based entertainment ("LBE"). Current 3Dfx
Interactive products include the Voodoo family of accelerator chipsets,
Voodoo2™, Voodoo Graphics™ and
Voodoo Rush™. Visit the company on the web at http://www.3dfx.com
3Dfx Interactive, Voodoo2, Voodoo Graphics and Voodoo Rush are trademarks of
3DFX INTERACTIVE, INC.
Cash and cash equivalents
Accounts receivable, net
Other current assets
Total current assets
Property and equipment, net
Liabilities and Shareholders’ Equity:
Line of credit
Current portion of capitalized lease
Total current liabilities
Capitalized lease obligations, less current
Total shareholders' equity
3DFX INTERACTIVE, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended
Cost of revenues
Research and development
Selling, general and administrative
Total operating expenses
Income/(loss) from operations
Interest and other income, net
Income/(loss) before income taxes
Provision for income taxes
Net income/(loss) per share
Shares used in net income/(loss) per share
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Juardis T. wrote in message
I have 3dfx stock right now, but why not pick up ona competitor also...
Keep people moving....
Anyone know the ticker symbol for nVidia? For 3dfx it is TDFX (glad I
bought at 13$ <vbg>). nVidia should be another big winner.
>I think I'll buy some stock in NVIDIA, because the whole 3d market is
I wouldn't buy Nvidia stock with that SGI patent lawsuit hanging over
I love Voodoo technology...it is the best looking and fastest....some people
will not justify spending the extra $80 for the Voodoo2 card but I wonder what
they are thinking when my friends still go out and buy M3d's or RIVA 128 based
chipset cards for gaming?
Good guess, cause that's what the symbol is going to be.
A good place to check on IPO's (filings, dates, prices, etc.) is
Broadcom was interesting, to say the least.
I like Chromatic Research - won't be widely knowm, has some good
technology behind it.
"Open your and see the lies right in front of you" - from
The Lords of the New Church
You are doing exactly what SGI wants you to do! Please read
through the assesment of the techniques SGI is employing
and why they are doing what they are doing.
These are my own personal opinions and not that of the company
I work for.
--------------------------- from the Fourth Wave ---------------
807.2 Story of the Issue
SGI Sues NVIDIA
Silicon Graphics, Inc. filed a patent infringement lawsuit
against NVIDIA Corporation in the United States District Court
for the District of Delaware. Silicon Graphics' lawsuit seeks an
injunction restraining NVIDIA from manufacturing, selling or
importing their RIVA family of processors, as well as
substantial monetary damages.
Silicon Graphics issued the following statement:
"We have always been on the forefront of innovation in 3D
graphics technology and visual computing," said David Orton,
senior vice president of the Visual Systems Group at Silicon
Graphics. "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
The lawsuit alleges that NVIDIA's RIVA family of processors,
which are used to accelerate 3D graphics on personal computers,
infringe U.S. Patent No. 5,706,481. The patent describes one of
Silicon Graphics' innovations that has made high-speed texture
mapping possible in low-priced hardware. Texture mapping is a
key technology in 3D computer graphics: it maps two-dimensional
"textures" or images onto the surfaces of three-dimensional
To drive the cost of texture mapping down to levels suitable for
high-volume markets, Silicon Graphics' engineers are claimed to
have improved the design of graphics hardware by combining
texture cache memory and texture interpolation logic on a single
semiconductor chip. Silicon Graphics' lawsuit alleges that
NVIDIA's RIVA family of graphics processors - as described at
NVIDIA's public Web site, at
infringe this fundamental advance in texture mapping technology.
The SGI press release made no comments on the suit by Lockheed
Martin against SGI on how SGI is claimed to have infringed on
the technology now owned by Real3D and licensed to Intel.
There is little secret that as NVIDIA expands it has been hiring
many key technical individuals in the Bay Area, including those
with or formally employed by SGI. One wonders if this suit also
has a backdoor intent of stemming the flow of SGI talent into
As the 3D marketplace continues to grow it is likely to be a
minefield of litigation as companies seek to get fees from their
IP and manage the flow of products to market. One problem is
that these suits are selectively targeted. If SGI's claims are
so broad why does it not try and stop the shipment of most 3D
chips and retard the 3D PC market? Certainly Real3D could be in
a position to do this with its broad portfolio. However, such
actions are difficult to accomplish and in many cases can net a
PR disaster. Thus, legal actions on IP matters usually have
objectives deeper than just getting royalties from old patents.
We find it interesting that SGI cites NVIDIA's web site as the
source of its claims of infringement. One would expect that in
court it would have a greater depth of legal and technical
research to justify its claims.
There remains one axiom in 3D and other high technology
industries - innovation surfaces in products and is made
obsolete faster than patents are filed, granted, made relevant
and serve as the basis for litigation.
As 3D moves forward such suits will become a part of the
landscape of many 3D mini-soap operas.
808.2 Story of the Issue
SGI Seals Suit Against Another 3D Company
The San Jose Mercury News reported on April 9 that SGI filed
suit against start-up ArtX a 3D start-up. The principals named
in the suit are Wei Yen, Tim Van Hook. The order was sealed
when filed on April 6 in Santa Clara County Court.
The newspaper reports that the suit charges "Yen, Van Hook and
ArtX with a series of violations including misappropriation of
trade secrets, unfair competition, breach of contract,
inducement of breach of contract, breach of fiduciary duty,
usurpation of corporate opportunity and interference with
prospective economic advantage. Those are the kind of charges a
company makes when it thinks its employees are being raided,
when it thinks its business is being taken by someone with
intimate knowledge of the company's relationships or when it
thinks a former employee is violating non-compete or non-
disclosure agreements. Van Hook declined to comment about the
letters or the lawsuit."
Further, the San Jose Mercury news reports ' ''It's a Bill
Kelly special,'' ' one former SGI executive said, referring to
SGI's corporate senior VP who runs its legal affairs. ''He's a
nice guy but when he gets mad, he really gets mad.'' ArtX,
according to some familiar with the company, was formed to take
the Nintendo graphics design business away from SGI. Many of
those at ArtX, including Van Hook, had worked on the popular
Nintendo 64 games.
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