Feeds

S3 revenues grow 100 per cent

Losses grew even faster, though...

  • alert
  • submit to reddit

SANS - Survey on application security programs

One-time 3D graphics company S3 saw its Q3 revenue double year-on-year, though its losses ballooned over the same timeframe.

For the three months to 30 September, S3's third quarter of fiscal 2000, the company saw revenues reach $140 million, almost twice the $70.5 million Q3 1999, driven by sales of its Rio MP3 player. Clearly S3's attempt to take Diamond Multimedia's business - which it acquired in this period last year - and make it its own is working.

"We have made the difficult decisions that will enable us to focus our efforts toward our high-growth emerging businesses and leadership technologies," said Ken Potashner, S3's chairman and CEO.

Well, almost. S3 lost $37.5 million during the quarter, dragged down by the decision to shut the company's multimedia add-in card business down and losses at its RioPort online music portal and software operation. Factor in one-off charges, and S3's loss hits $75.6 million, or 82 cents a share. That compares poorly with Q3 1999's loss of just over $11 million (40 cents a share).

There should be better news on the horizon, primarily through S3's sale of its 3D chip business to Taiwan's VIA. Although passed by US mergers and acquisitions regulators, the Taiwanese government has been less than keen on the deal, initially blocking its progress. The sale was to have been completed last July. Negotiations continued through August, resulting in the basis of a deal that Taiwan's regulators could live with.

The deal should net S3 $288 million. In the meantime, Rio continues to sell well, having become probably the most recognised brand in the category. How it will compete once the big-name audio brands move in on the territory remains to be seen. Sony is there already, but its products are at the very top end of the price-range. Others will provide tougher competition, but Rio has had plenty of time to establish itself. ®

Related Stories

S3 unveils badged Psion PDA
S3/VIA integrated chipset hits the streets
Via and S3 talk $377m deal down to $288m
S3 admits Taiwan rejected chip sale to Via
S3 closes Diamond graphics board biz

Combat fraud and increase customer satisfaction

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
Intel sees 'signs of improvement in the PC business' but earnings remain 'Meh...'
Prospects for the future, however, please Wall Street money men
What's a right pain in the ASCII for IBM? Its own leech-like hardware biz
Keep your eyes on our cloud while we remove this pesky thing, say execs
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.