Feeds

Diamond posts disappointing Q2 figures

So is the S3 merger off or on, then?

  • alert
  • submit to reddit

Protecting users from Firesheep and other Sidejacking attacks with SSL

Diamond Multimedia yesterday posted disappointing Q2 results, but at least the figures suggest S3's acquisition of the company should go ahead as planned. Diamond reported revenues for the quarter, ended 30 June, of $128.7 million, down 34 per cent on the $172.3 million posted for the same period last year. But while revenue fell, the company's loss improved -- this time it lost $5.4 million; last year it lost $8.3 million. That implies that the company's plan to improve its business -- primarily by moving away from low-margin products like low-end 3D graphics cards and modems, and toward more profitable areas like digital music and home networking -- is beginning to take effect. The final income figure Diamond posted was actually $10.8 million, thanks to a charges incurred in the process of converting its RioPort division into an independently operating business. RioPort, which focuses on the MP3 digital music market, will be spun off during the current quarter. Curiously, Diamond made no reference to its upcoming purchase by 3D graphics specialist S3, which last month launched a $180 million buyout bid for Diamond. Rumours had emerged that the deal may be off, suggesting it may well have been simply a way for S3 to avoid being aggressively acquired by rival graphics company 3dfx. Equally, the success of the RioPort division might well suggest that S3's bid undervalue Diamond. The current results, however, suggest at least that if S3 is still interested, the deal should proceed. Apart from the anti-3dfx angle, the move is still a sensible one for S3 as it struggles not only to regain its former glory but to compete in a market that's forcing technology developers and hardware manufacturers to come together, as 3dfx and STB Microelectronics did. ®

Website security in corporate America

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.