3dfx Surge

3dfx is reporting big gains in revenue for the first quarter of its 2001 fiscal year. The company posted revenues of $108.6 million for the quarter, significantly better than the $40.4 million the company brought in during the same period one year ago. Gross profit gains were more modest, increasing to $26.4 million for the quarter versus last year's result of $14.2 million. One key ingredient of 3dfx's first quarter success is the shift in sales this quarter to primarily board level products, while last year at this time the company was still selling mainly chip level products. Increasing revenues, however, have yet to put an end to the company's red ink, as net losses continued to build. 3dfx posted a net loss of $12.4 million for the first quarter, well beyond the loss of $2.2 million in the first quarter last year. "Our clear and immediate goal is to return to profitability and then move on with the task of obtaining significant growth by developing new markets for our 3D chips," said 3dfx Chairman Alex Leupp.