3DFX SHARES PLUNGE ON UNCERTAINTY ABOUT SEGA CONTRACT


3Dfx Interactive Inc.'s stock price plunged as much as 43 percent Monday after the computer chip maker said Sega Enterprises Ltd. , a key customer, has not yet decided whether it will use a 3Dfx chip in its next-generation video game machine. San Jose, Calif.-based 3Dfx fell $4.625 to $11.50 a share in early afternoon trading on Nasdaq, where it was the biggest percentage loser. Earlier, the stock traded as low as $9.25.

3Dfx, which went public late last month, makes computer chips that improve the capabilities of computers to handle 3-D graphics and animation. Its stock price jumped to $18.625 earlier this month from the initial offering price of $11, fueled by prospects of supplying chips for a new video game console Sega has in the works.

3Dfx said Monday, however, that a ``faction'' within Sega is pushing the Japanese video game company to consider a rival chip from NEC Corp. As of Friday, discussions were still going on within Sega about which chip to use, said 3Dfx Chief Financial Officer Gary Martin. ``All we know right now is that we have a valid contract to build a part'' for Sega's upcoming machine, Martin said. If Sega backs out of the contract, 3Dfx could get compensatory damages, he said.

• 要約 - Mystique 97/7/22 14:37:16
  • いつもいつもありがとう。 - ＲＥＤ５ 97/7/22 14:49:49