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EXHIBIT 99.1
3DFX INTERACTIVE ANNOUNCES RESULTS FOR QUARTER ENDED APRIL 30, 2000
SAN JOSE, Calif., May 23/PRNewswire/ -- 3dfx Interactive(R) Inc. (Nasdaq: TDFX
- news) today announced financial results for the quarter ended April 30, 2000,
which is the first quarter of the company's fiscal year 2001. 3dfx is a global
leader in developing silicon chips and board-level solutions for personal
computers to accelerate and improve the visual quality of 3D graphics imaging.
The company's products are marketed under the Voodoo brand name.
Revenues for the quarter ended April 30, 2000 were $108.6 million, which
compares to $40.4 million in the same quarter last year. The increase in
revenues was primarily attributed to the sales of board-level products as
opposed to chip-level products for the same time one year ago. The gross profit
for the quarter was $26.4 million or 24.3 percent of sales, compared to $14.2
million or 35.2 percent of sales in the same quarter last year, and the gross
margin decrease was due to product mix changes. The gross margin for the fiscal
2001 first quarter, however, represented a significant improvement over the
prior quarter's gross margin of 11.6%.
"The results were in line with our expectations, and we feel positive about
our operating improvements particularly compared to the previous quarter,"
stated Alex Leupp, president and CEO. Leupp further noted that the company had
successfully executed on its plan to reduce operating expenses by approximately
10 percent from $39.2 million in the fourth quarter of 2000 to $35.7 million in
first quarter of 2001.
Research and development expenses increased from $11.8 million in the first
quarter of 2000 to $16.6 million in the first quarter this year. The difference
was due primarily to increases in R&D personnel and the acquisition of STB
Systems, Inc. in May 1999. Leupp said R&D expenses should increase in
coming quarters because of the company's aggressive efforts to incorporate the
GigaPixel technology.
Selling, general and administrative (SG&A) expenses increased from $6.6 million
in the first quarter of last year to $19.1 million in the first quarter of the
current year. The increase was primarily due to the acquisition of STB Systems,
Inc.
The operating loss before goodwill and taxes was $9.3 million, compared to $4.1
million in the same quarter last year. The net loss was $12.4 million or $0.51
per share compared to a net loss of $2.2 million or $0.14 per share for the
first quarter fiscal year 2000. The fiscal 2001 first quarter results were
calculated on the basis of 24,510,000 shares outstanding; in the comparable
period last year per
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share results were computed on the basis of 15,768,000 basic shares. The
increase in shares outstanding was primarily attributable to the STB
acquisition.
Leupp concluded, "Our clear and immediate goal is to return to profitability
and then move on with the task of obtaining significant growth by developing
new markets for our 3D chips. To that end, we have begun to quickly integrate
the personnel and technology of GigaPixel, whose acquisition we announced in
March 2000."
Conference Call Later Today
Leupp said that he would discuss the Company's current prospects, the actions
recently initiated, and future prospects during a conference call for investors
scheduled at 4:30 p.m. EDT (1:30 p.m. PDT). Interested investors can listen by
logging in to www.3dfx.com/earnings or www.vcall.com. Additionally, registered
users can log into www.streetfusion.com. The conference call will be archived on
all three web sites. A taped replay will be available at 1-888-843-8996,
passcode 2343472.
About 3dfx Interactive, Inc.
3dfx Interactive is leading the 3D multimedia revolution in personal computers
and consumer products. With its patented and award-winning graphics accelerator
chips, boards and software, 3dfx provides the technology to create high-impact
visual experiences. The Company is recognized worldwide for its ability to
bring the world's finest games, educational content, interactive entertainment
and media-rich business applications to life. 3dfx products are available in
retail stores worldwide, and through leading PC makers including Compaq, Dell,
Gateway.3dfx has headquarters in San Jose, Calif., with engineering and
manufacturing facilities in Richardson, Texas, and Juarez, Mexico. The Company
also operates www.3dfxgamers.com, the premier online community for Voodoo
owners and enthusiasts. 3dfx Interactive is available on the Web at
http://www.3dfx.com.
This document may contain forward-looking statements that are inherently
subject to risks and uncertainties. The words "estimate," "project," "intend,"
"expect," "believe," and similar expressions are intended to identify
forward-looking statements. The Company's actual results could differ
materially from those currently anticipated due to a number of factors,
including, but not limited to, technical or manufacturing or distribution
issues, the competitive environment for the Company's products, the timing of
new orders, the degree of market penetration of the Company's new products, and
other factors set forth in reports and other documents filed by Company with the
Securities and Exchange Commission from time to time.
3dfx Interactive is a registered trademark of 3dfx Interactive and Voodoo4 and
Voodoo5 are trademarks of 3dfx Interactive. All other names may be trademarks
of their respective holders.
3DFX INTERACTIVE, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
<TABLE>
<CAPTION>
April 30, January 31,
2000 2000
--------- -----------
<S> <C> <C>
Assets:
Cash and cash equivalents $ 44,684 $ 41,818
Short-term investments 12,986 24,012
Accounts receivable, net 65,479 66,160
Inventory 51,179 45,065
Other current assets 15,951 28,407
Total current assets 190,279 205,462
Property and equipment, net 37,041 40,269
</TABLE>
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<TABLE>
<S> <C> <C>
Intangibles 11,066 12,942
Goodwill 31,595 32,709
Other assets 8,675 4,729
$278,656 $296,111
Liabilities and Shareholders' Equity:
Short-term debt $25,000 $25,000
Accounts payable 60,503 60,879
Accrued liabilities 18,758 20,285
Current portion of capitalized
lease obligations 1,314 732
Total current liabilities 105,575 106,996
Other long term liabilities 1,029 1,881
Shareholders' equity:
Common stock 249,493 251,883
Warrants 242 242
Deferred compensation (51) (172)
Unrealized gain on equity securities (782) 1,844
Accumulated deficit (76,850) (66,563)
Total shareholders' equity $278,656 $296,111
</TABLE>
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended
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April 30, April 30,
2000 1999
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<S> <C> <C>
Revenues $108,578 $40,444
Cost of revenues 82,167 26,190
Gross profit 26,411 14,254
Operating expenses:
Research and development 16,557 11,756
Selling, general and administrative 19,125 6,620
Amortization of goodwill and intangibles 3,830 --
Total operating expenses 39,512 18,376
Income (loss) from operations (13,101) (4,122)
Interest and other income (expense), net (45) 911
Income (loss) before income taxes (13,146) (3,211)
Provision (benefit) for income taxes (715) (1,027)
Net income (loss) $(12,431) $(2,184)
Net income (loss) per share
Basic $ (0.51) $ (0.14)
Diluted $ (0.51) $ (0.14)
Shares used in net income (loss) per
share calculations
Basic 24,510 15,768
Diluted 24,510 15,768
</TABLE>
