Feeds

S3 revenues rise

But they're a long way off its pre-Diamond merger expectations

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

Digital media company S3 yesterday saw its second quarter revenues rise almost 137 per cent to $135.8 million, but experienced a widening loss of $36.3 million on the back of the spin-off and closure of two of its subsidiaries.

For Q2 2000, S3 lost $12.1 million (13 cents a share). That's almost as much as the company lost in the first six months of 1999, let alone just a quarter. Add to that $6 million in charges relating to the spin-off of RioPort.com, $7.2 million from the cost of shutting down its Diamond graphics card operation and $11 million worth of other, unspecified one-off charges, and S3's loss for the quarter ballooned to $36.3 million.

For the three months to 30 June 2000, the company's net revenues hit $135.8 million, up from $57.3 million for the same period last year.

Combining the company's first two quarters, S3 saw revenues of $297.5 million, which is better than the $101.6 million it recorded for the same period last year, but rather less than it needs if it's to meet chairman and CEO Ken Potashner's pre-Diamond Multimedia merger boast that the combined companies could easily generate full year revenues of over $1 billion.

If he's to achieve that figure, it will be through the Rio, he believes. "We exited the quarter with continued positive developments for our Rio, home networking and communications products," he said. "S3 has created a dominant brand in the digital media market through our Rio product line and is continuing to add the strategic partners and develop the technology roadmap that can support this brand leadership position." ®

Related Stories

S3 closes Diamond graphics board biz
S3 admits Taiwan rejected chip sale to Via

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.