3Dlabs Inc says it will report a loss for its second quarter, when revenues are not now expected to exceed $11m. First Call analysts had expected a profit of about $0.15 a share. Last quarter, the company reported revenues of $24.5m, and made $22.3m the quarter before. The Hamilton, Bermuda-based graphics chipmaker had previously warned that revenues would be down 10% from its first quarter figure. But, it said, the decline in revenues from its Permedia 2 low-end graphics chip would now be greater due to excess inventory from competitors in the channel and extreme price competition, particularly in the Asia-Pacific markets. These factors would affect both its own direct business and those of its partner Texas Instruments Inc, which resells the part, said the company. 3Dlabs president Osman Kent said that a set of short-term and long-term corrective actions had been put in place to restore shareholder value, and that these would be implemented over the next two quarters. But, said Kent, we do not expect to see a robust recovery in our business until the fourth quarter of 1998. The news resulted in the resignation of 3Dlabs’ chief financial officer, Doug Miller. In an attempt to counteract the bad news, 3Dlabs said that eight OEMs had now got to market with products based on its Glint GMX high-end graphics processor. The vendors are AccelGraphics, Core Microsystems Inc, Elsa Inc, Leadtak, Maxvision, NTSI, Omnicorp Graphics Corp and STB Systems Inc.
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