EX-99.1 2 f72037ntex99-1.txt EXHIBIT 99.1 1 EXHIBIT 99.1 WEDNESDAY MARCH 28, 8:34 PM EASTERN TIME PRESS RELEASE 3DFX ANNOUNCES QUARTERLY AND FISCAL YEAR RESULTS, AS WELL AS SHAREHOLDER APPROVAL OF LIQUIDATION AND ASSET SALE PROPOSALS SAN JOSE, Calif.--(BUSINESS WIRE)--March 28, 2001--3dfx Interactive, Inc. (Nasdaq: TDFX - news) announced today financial results for the fourth quarter of fiscal 2001 and the year ended January 31, 2001. For the fourth quarter of fiscal 2001, revenues decreased to $18.3 million, compared to $109.4 million for the fourth quarter of fiscal 2000, a decrease of 83.3%. Operating losses for the fourth quarter of fiscal 2001 were $79.7 million, compared to operating losses of $32.7 million in the fourth quarter of fiscal 2000. Net losses for the fourth quarter of fiscal 2001 were $49.0 million compared to net losses of $31.9 million for the fourth quarter of fiscal 2000, an increase in net losses of 53.7%. Revenues for the year ended January 31, 2001, were $233.1 million, a decrease of 35.3% compared to revenues of $360.5 million for the year ended January 31, 2000. Operating losses for the year ended January 31, 2001, were $372.2 million compared to $75.8 million for the year ended January 31, 2000. Net losses for the year ended January 31, 2001 were $340.5 million, an increase in net losses of 438.1% compared to net losses of $63.3 million for the year ended January 31, 2000. 3dfx also announced that at a special shareholders meeting held on March 27, 2000, 3dfx's shareholders approved proposals to liquidate, wind up and dissolve 3dfx pursuant to a plan of dissolution and to sell some of 3dfx's assets to an affiliate of NVIDIA Corporation (Nasdaq:NVDA) pursuant to an asset purchase agreement. About 3dfx Interactive 3dfx Interactive, Inc. developed high performance, cost-effective graphics chips, graphics boards, software and related technology that enables an interactive and realistic 3D experience across multiple hardware platforms, but is now in the process of winding up its business. This press release contains forward-looking statements based on current expectations that are inherently subject to risks and uncertainties. The words "estimate," "project," "intend," "expect," "believe," "plan," and similar expressions are intended to identify forward-looking statements. The Company's actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, those risks identified in the reports and documents filed by the Company with the Securities and Exchange Commission from time to time. 2 3dfx Interactive, Inc. Consolidated Condensed Balance Sheets (In thousands) (Unaudited)
January 31, January 31, 2001 2000 ---- ---- ASSETS Current Assets: Cash and cash equivalents $ 9,391 $ 41,818 Short-term investments -- 24,012 Accounts receivable, net 6,398 66,160 Inventory 22,358 45,065 Deferred tax assets 35,000 7,000 Other current assets 1,214 21,407 -------- -------- Total current assets 74,361 205,462 Property and equipment, net 20,349 40,269 Goodwill and other intangibles 20,765 45,651 Other assets 4,131 4,729 -------- -------- Total assets $119,606 $296,111 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Line of credit $ -- $ 25,000 Accounts payable 64,245 60,879 Accrued liabilities 11,642 20,385 Note payable 15,000 -- Other current liabilities 5,878 732 -------- -------- Total current liabilities 96,765 106,996 -------- -------- Capitalized lease obligations, less current portion 488 1,881 -------- -------- SHAREHOLDERS' EQUITY Common stock 430,922 251,883 Warrants 242 242 Deferred compensation -- (172) Accumulated other comprehensive income (loss) (1,722) 1,844 Accumulated deficit (407,089) (66,563) -------- -------- Total shareholders' equity 22,353 187,234 -------- -------- Total liabilities and shareholders' equity $119,606 $296,111 ======== ========
3 3dfx Interactive, Inc. Consolidated Condensed Statement of Operations (In thousands) (Unaudited)
Three Months Ended Year Ended January 31, January 31, 2001 2000 2001 2000 ---- ---- ---- ---- Revenues $ 18,310 $ 109,388 $ 233,067 $ 360,523 Cost of revenues 43,085 96,750 242,989 287,872 --------- --------- --------- --------- Gross (loss) profit (24,775) 12,638 ( 9,922) 72,651 Operating expenses: Research and development 9,269 19,689 65,394 66,062 Selling, general and 39,496 19,514 89,106 63,468 administrative In-process research and -- -- 66,250 4,302 development Amortization of goodwill 6,456 3,627 24,449 10,228 and other intangibles Impairment of goodwill -- 117,065 and other intangibles Restructuring expense -- 2,552 -- 4,382 --------- --------- --------- --------- Total operating expenses 54,899 45,382 362,264 148,442 --------- --------- --------- --------- Loss from operations (79,674) (32,744) (372,186) (75,791) Other expense (income), net 5,505 (192) 4,812 (2,180) Loss before income taxes (85,179) (32,552) (376,998) (73,611) Benefit for income taxes (36,159) (666) (36,472) (10,324) --------- --------- --------- --------- Net loss $ (49,020) $ (31,886) $(340,526) $ (63,287) ========= ========= ========= =========
Contact: 3dfx Interactive, Inc. Investor and Shareholder Relations Richard A. Heddleson, 408/591-3508