Strong first quarter but 3Dlabs warns of slowdown

Strong first quarter but 3Dlabs warns of slowdown
Tom Foremski
3Dlabs reported strong growth in its high-end 3D graphics chip sales, with first quarter fiscal revenues up 56 per cent to $24.5m and profits of $2.3m.
“Our product momentum with PERMEDIA 2 continued in the quarter as we increased unit volumes by approximately 38 per cent and more than doubled the related contribution to gross profit,” said Osman Kent, president and CEO of 3Dlabs. “We are pleased with the overall benchmark and application performance we are achieving with our latest GLINT Gamma-based products. Our GLINT revenues in the quarter were up approximately 23 per cent sequentially over the fourth quarter of 1997.”
But Osman warned that growth of its GLINT business is expected to slow down over the rest of this year. And a slowdown in the PC will likely result in a 10 per cent drop in its fiscal second quarter results.

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