During the period, 3Dlabs continued to narrow its losses substantially, reporting an operating loss of ($0.8) million compared to ($1.9) million in the fourth quarter of 2000. For the quarter ended March 31, 2001, 3Dlabs reported a loss before amortization of goodwill and other intangibles and special costs of ($1.6) million, or ($0.07) per share, compared to ($2.6) million, or ($0.12) per share for the fourth quarter of 2000.
We posted strong revenue growth despite the widely reported industry slowdown and made great strides in reducing our operating losses, said Osman Kent, President and CEO of 3Dlabs.
The demand for our products continued to be strong both in the channel and among the OEMs and during the quarter we announced new design wins at Compaq, Dell, SGI and Sun Microsystems. As we reported earlier, a significant portion of our business during the quarter continued to be supply limited. However, we expect this situation to gradually ease in the coming quarters. In our quest to return the company to profitability, we also took certain measures to reduce our operating expenses from April onwards, while still planning to grow our business. Kent continued.
At the end of the quarter, the company effected a cost reduction plan aimed at reducing operating expenses from the beginning of April. This plan included, among other measures, a 15% reduction of the company’s workforce by the end of March 2001, primarily from non-technical functions. Accordingly, in the first quarter 3Dlabs incurred a one-time charge of $1.4 million, associated with this restructuring.
Kent added, With the clear goal of realizing profitability before the end of 2001 and gaining operational efficiencies, we have taken actions to immediately lower our cost structure while continuing our focus on key products and customers. The steps we took in the first quarter will strengthen the company and help exploit synergies as we build revenue and work towards operational profitability.
During the first quarter, 3Dlabs announced a series of key design wins with Compaq, Dell and SGI for its new Wildcat II 5110 graphics accelerator, the next leap in professional graphics. The company also announced that its acclaimed Wildcat II graphics technology is providing the core graphics technology for the new Sun Expert3D-Lite professional graphics card from Sun Microsystems.
Kent concluded, We recently began volume deliveries of these new products and as a result we expect our sequential revenue growth to continue in the second quarter. The management of the company is focused more than ever on growing our business, returning to profitability and building long-term shareholder value and we plan to take whatever action is necessary to achieve those goals.
