Dulanic
Diamond Member
<< SAN JOSE, Calif., Dec. 15 /PRNewswire/ -- 3dfx Interactive, Inc. (Nasdaq: TDFX, news, msgs) today announced financial results for its third fiscal quarter of the fiscal year 2001, ended October 31, 2000.
Revenues for the nine months ended October 31, 2000, were down 14 percent over the same period last fiscal year to $214.8 million compared to revenues of $251.1 million for the nine months ended October 31, 1999. Revenues for the third fiscal quarter were down 63 percent over the same period last fiscal year to $39.2 million compared to $105.9 million for the third quarter of fiscal 2000, ended October 31, 1999. "Our financial results illustrate the dramatic shift we've seen in the retail market over the past quarter," said Alex Leupp, president and CEO, 3dfx Interactive, Inc. "We have experienced a significant slowdown in demand for our products, especially the Voodoo 3 and Voodoo 5 boards. This slowdown is consistent with the overall softness experienced by the PC market, especially in Western Europe. In addition, we've experienced pricing pressures in the channel. Finally, our inability to secure a bank line of credit has impacted our ability to build inventory to meet even the existing demand."
Gross profit (loss) for the third quarter fiscal 2001 decreased to ($21.7 million) from $17.2 million in the three months ended October 31, 1999. Gross profit (loss) as a percentage of revenues was (55.5)% in the three months ended October 31, 2000 compared to a gross profit of 16.3% in the comparable period of the previous year.
The company reported an operating loss before charges for amortization and impairment of goodwill and
intangibles for the third quarter of fiscal 2001 of $55.9 million. Operating losses before in process research and development and charges for amortization and impairment of goodwill and intangibles for the first nine months of the fiscal year 2001 were $90.7 million, compared to $30.3 million for the first nine months of fiscal year 2000. The third quarter fiscal 2001 net loss includes a $117.1 million charge for impairment of goodwill and other intangible assets and $9.7 million for amortization expenses.
The company reported a net loss of $178.6 million for the quarter, or $4.53 per share, using 39,442,000 shares in the per share calculation. For the nine months ending October 31, 2000, the company reported a net loss of $291.5 million, or $9.69 per share.
In a separate announcement dated December 15, 2000, 3dfx Interactive announced its intention to substantially reduce costs in order to best conserve its resources. These cost-cutting measures include a significant reduction in the company's work force as well as other measures. In addition, the company's Board of Directors and advisors are recommending to its shareholders that they approve a plan to sell most of 3dfx's assets to NVIDIA Corporation (Nasdaq: NVDA, news, msgs) and that shareholders also approve a plan to dissolve the company following completion of the asset sale.
3dfx will hold a conference call to discuss its financial results and current business developments today at 2 p.m., Pacific Standard Time (3 p.m. Mountain, 4 p.m. Central, 5 p.m. Eastern). To participate in the conference call, please dial 800-521-5428 approximately five minutes before the scheduled starting time. No password is required. A live webcast (listen-only mode) of this call will also be available at www.3dfx.com/earnings and www.streetevents.com. Analysts and institutional investors who wish to participate in the question and answer should call 408-935-4075 in advance of the conference call. >>
*I guess this thread is pointless now*
