3dfx Losses

Chipmaker 3dfx is reporting more than $100 million in losses for the second quarter. Revenues for the quarter reached $67 million, compared to $104.8 million in the same period one year ago. Though sales slowed in the second quarter, much of the company's poor performance can be attributed to soaring operating expenses. Expenses for the quarter jumped from less than $43 million in the second quarter last year to better than $106 million (including a $66.2 million charge related to the Gigapixel acquisition) this year. 3dfx's net loss for the quarter totals $100.2 million, equalling $3.81 per share. Last year's second quarter loss, by comparison, was just $11.6 million. "During the quarter, we were simultaneously faced with product transition, component supply and seasonality issues," explained 3dfx CEO Alex Leupp, "Clearly, we are very disappointed with this quarter's financial results."