3Dlabs doing well but for how long

3Dlabs doing well but for how long
Tom Foremski Surrey-based graphics chip firm 3Dlabs has seen strong growth of its high-end 3D graphics chip sales. But the chip developer has warned of problems ahead. First quarter fiscal revenues were up 56 per cent to $24.5m and profits were $2.3m. Sales of the company’s PC graphics chip Permedia 2 were particularly strong. But Osman Kent, president and CEO of 3Dlabs, warned that growth of its core high-end workstation graphics chip business is expected to slow during the year. Added to this, a slowdown in the PC market is likely to result in a ten per cent drop in its fiscal second quarter results.


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