3dfx Financials

Though 3dfx saw fourth quarter revenues rise this year, from $60.7 million in the fourth quarter last year to $109.4 million this year, the company recorded a quarterly loss of $31.9 million compared with a profit of $2.1 million in the same period a year ago. Revenues for the entire year of 1999 rose to $360.5 million compared to 1998's total of $202.6 million. Losses, however, increased to an astounding $63.3 million compared with earnings of $21.7 million in 1998. The company attributes the losses to restructuring costs including workforce reduction as well as lower gross margins. 3dfx CEO Alex Luepp promised to turn the company around, "We want to return to profitability as soon as possible. We believe our financial results will lag our actions by several months and we won't see the real impact of our actions reflected in our P&L until our FY 2001 second quarter."