S3 revenues rise
But they're a long way off its pre-Diamond merger expectations
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." ®