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B R E A K F A S T W I T H T H E F O O L Friday, November 10, 2000 benjamin.rogers@enron.com _________________________________________________________________ REGISTER TO BECOME A FOOL -- GET FREE STUFF! http://www.fool.com/m.asp?i=189393 _________________________________________________________________ Sponsored By: Wells Fargo Do your business banking online, anytime, anywhere. See balances, move funds, track deposits, and get 24/7 customer service. http://www.lnksrv.com/m.asp?i=189394 "Take calculated risks. That is quite different from being rash." --George S. Patton NVIDIA KEEPS CHIPPIN' Nvidia has overtaken ATI Technologies as the largest maker of graphic-enhancing chips for desktop computers. By Mike Trigg Computer graphic chip maker Nvidia (Nasdaq: NVDA) reported better-than-expected third-quarter results after the market's close yesterday, citing market share gains attributable to original equipment manufacturers' (OEM) and system builders' rapid adoption of its GPU technologies. The company maintained a robust growth outlook, expanding out of its core desktop business. Nvidia's fiscal third-quarter (ended October 31) net income was $28.1 million, or $0.35 per share, compared to $10.6 million, or $0.15 per share, in the comparable period a year ago. The Street consensus estimate called for the company to earn $0.32 per share. Moreover, revenues came in at $198.2 million, more than doubling year-over-year from $97 million. And operating income grew 142% to $36.6 million. According to a new study this week by Mercury Research, Nvidia has overtaken ATI Technologies (Nasdaq: ATYT) as the largest maker of graphic-enhancing chips for desktop computers. For the third quarter, Nvidia chips were in 48% of all desktop computers, increasing more than twofold from a year ago. Meanwhile, ATI's desktop market share slipped five percentage points to 34%. However, in the laptop market, ATI expanded its market share from 29% in the same period a year ago to 57%, highlighted by new contracts with IBM (NYSE: IBM) and Dell (Nasdaq: DELL). Despite losing money in the last two quarters, ATI expects to re-enter the black in the current quarter (ends November 30). Nevertheless, Nvidia's gains continue to look impressive in comparison to the competition. The Santa Clara, Calif.-based Nvidia has made significant gains winning over longtime ATI customers, including Compaq Computer (NYSE: CPQ) and Gateway (NYSE: GTW). According to the Street, the shift has occurred because Nvidia has been more successful at rolling out improved chips every six months. In a press release yesterday, CEO and President Jen-Hsun Huang cited its newest GeForce chip, the GeForce2 Ultra, as cause for its expanding leadership position. The other competitive force, 3Dfx Interactive (Nasdaq: TDFX), is coming off a disappointing July quarter when revenue was less than half of what the Street expected. The company attributed the shortfall to component shortages and "competitive and retail seasonality factors." Similarly, the company announced it would report disappointing results for the quarter ending in October. AFTER-HOURS COVERAGE DELL ANNOUNCES Q3 Direct PC seller Dell announced third-quarter results after the market's close today, in line with the consensus Street expectation. With speculation throughout the day looming that Dell had "juiced" revenue numbers at quarter's end, shares traded down roughly 6% to close at $28.38. The company also reconfirmed earlier guidance that called for sales to rise 27% year-over-year, slightly below the 30% growth the company was expecting earlier in the year. FULL STORY<< http://www.fool.com/m.asp?i=189395 _________________________________________________________________ NEWS TO GO Guess what? Sexy jeans retailer Guess (NYSE: GES) announced third-quarter profits after the market's close well below Street expectations, citing excess inventory and a difficult retail environment. Guess reported third-quarter profits of $5.6 million, or $0.13 per share, compared to $14.2 million, or $0.33 per share, in the year-ago period. That's well below the Street consensus expecting $0.36 per share. Inventory levels at quarter's end were $164.2 million, up from $94.2 million last year. Total revenue increased 39% year-over-year to $216.4 million. Guess also revised its fourth-quarter outlook, now calling for earnings to be $0.08 per share to $0.10 per share. The Street estimate called for $0.36 per share. Construction and industrial supplies distributor Hughes Supply (NYSE: HUG) reported that it would miss third-quarter and full-year estimates. The company expects earnings between $0.75 per share and $0.79 per share, down from $0.87 per share in the same period last year. The consensus Street estimate had called for $0.93 per share. Sales for the quarter should come in at $860 million, about 10% lower than expected. The company expects full-year sales growth of 9% to 11%, and full-year earnings between $2.75 per share and $2.80 per share. The slower-than-expected growth was attributed to commodity pricing exposure for many plumbing and building materials products. You learn real good! Computer training company Learning Tree International (Nasdaq: LTRE) posted solid fourth-quarter and full-year results after the market's close yesterday. Learning Tree reported earnings of $9.1 million, or $0.40 per share, compared to $5.7 million, or $0.26 per share, one year ago. That's well ahead of the Street consensus of $0.36 per share. Moreover, the Orlando, Florida-based company pulled in $56 million in sales, increasing 21% from $48.5 million in the same period last year. For the entire fiscal year, Learning Tree earned $50.4 million, or $1.65 per share, compared to $14.7 million, or $0.57 per share, last year. Managed healthcare service provider PacifiCare Health Systems (Nasdaq: PHSY) reported a significant drop in third-quarter net income, citing rising medical costs related to the company's transition from capitated contracts to per-diem, fee-for-service or shared-risk arrangements with hospitals. The Santa Ana, Calif.-based company turned in earnings of $5.2 million, or $0.15 per share, compared to $69.3 million, or $1.54 per share, in the year-ago period. The Street consensus called for a $0.07-per-share loss. Results reported for the quarter include a $3.8 million credit, or $0.11 per share, related to the early termination of a license agreement. Results for the same period last year reflected a $1.7 million net charge, or a $0.04-per-share loss, for impairment and disposition activities. Revenue were $2.87 billion, increasing 14% from $2.52 billion. Check out yesterday's Foolish market wrap-up with just one click. http://www.fool.com/m.asp?i=189396 _________________________________________________________________ EDITORS' PICK Tom Gardner and Peter Psaras share thoughts on 10 people whom they call the "Master Investors" of our time. http://www.fool.com/m.asp?i=189397 _______________________________________________________________ -News & Commentary http://www.fool.com/m.asp?i=189398 -Fool Community http://www.fool.com/m.asp?i=189399 -Post of the Day http://www.fool.com/m.asp?i=189400 -Latest Fribble http://www.fool.com/m.asp?i=189401 -Latest Market Numbers http://www.fool.com/m.asp?i=189402 ____________________________________________________________ My Portfolio: http://www.fool.com/m.asp?i=189403 My Discussion Boards: http://www.fool.com/m.asp?i=189404 My Fool: http://www.fool.com/m.asp?i=189405 Fool.com Home: http://www.fool.com/m.asp?i=189406 My E-Mail Settings: http://www.fool.com/m.asp?i=189407 Sponsored By: Wells Fargo Do your business banking online, anytime, anywhere. See balances, move funds, track deposits, and get 24/7 customer service. http://www.lnksrv.com/m.asp?i=189408 FREE BOOK, JUST FOR FOOLS! Investor's Business Daily will send you a free copy of 24 Essential Lessons for Investment Success when you sign up for a free trial subscription of their newspaper. http://www.lnksrv.com/m.asp?i=189409 NEW! EMC THIRD-QUARTER UPDATE The company continues to see incredible growth. Find out what lies ahead with Motley Fool Research. http://www.lnksrv.com/m.asp?i=189410 FOOL DIRECT E-MAIL SERVICES Need to change your address or unsubscribe? You can also temporarily suspend mail delivery. Click here: http://www.fool.com/community/freemail/freemaillogin.asp?email=benjamin.rogers @enron.com< Have ideas about how we can improve the Fool Direct or new e-mail products you'd like to see? Try our discussion board: http://www.fool.com/m.asp?i=189411 ____________________________________________________ © Copyright 2000, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. . MsgId: msg-26605-2000-11-10_9-42-41-3496152_2_Plain_MessageAddress.msg-09:46:10(11-10 -2000) X-Version: mailer-sender-master,v 1.84 X-Version: mailer-sender-daemon,v 1.84 Message-Recipient: benjamin.rogers@enron.com
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