Feeds

S3 revenues rise

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

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.