Diamond Multimedia announces preliminary quarterly results for the first quarter ended March 30, 1997.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--April 2, 1997--Diamond Multimedia Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DIMD DIMD Dorland's Illustrated Medical Dictionary ) today announced that revenue for the first quarter ended March 30, 1997, was approximately $112 million and that gross margin will be lower than that reported for the previous quarter. It is anticipated that this will result in an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter of between ($0.12) and ($0.18) per share. For the first quarter of 1996, Diamond reported revenue of $188 million and net income of $11.2 million, or $0.32 per share. William J. Schroeder William J. Schroeder was one of the first recipients of an artificial heart. On November 25, 1984, Schroeder became the second human recipient of the Jarvik 7. After 18 days, he suffered the first of a series of strokes, eventually leaving him in a vegetative state. , President and Chief Executive Officer, indicated that revenue was affected by a number of factors during the quarter in addition to the normal seasonal patterns, including lower than expected demand in the high end of the mainstream graphics market, the transition from 33.6kbps to 56kbps modems, lower product demand in Europe, Korea and Japan, and price declines in both the modem and the graphics markets. He also noted that margins were adversely affected by the lower volumes for the quarter and by price protection resulting from aggressive channel pricing. Diamond Multimedia Diamond Multimedia is driving the Internet multimedia market by providing interactivity and connectivity solutions for home, business and professional desktop computers users, enabling them to create, access and experience compelling new media content from their desktops and through the Internet. Diamond accelerates multimedia from the Internet to the hard drive with products that include the Stealth series of media accelerators, the Monster series of entertainment 3D and sound accelerators, the Fire series of professional 3D and SCSI SCSI in full Small Computer System Interface Once common standard for connecting peripheral devices (disks, modems, printers, etc.) to small and medium-sized computers. SCSI has given way to faster standards, such as Firewire and USB. accelerators, and the Supra A relational DBMS from Cincom Systems, Inc., Cincinnati, OH (www.cincom.com) that runs on IBM mainframes and VAXs. It includes a query language and a program that automates the database design process. series of modems and ISDN adapters. Diamond also markets sound cards and multimedia and video upgrade kits. The anticipated results described in the above paragraphs constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are subject to a number of risks and uncertainties which would cause actual results to differ materially from those projected. Such risks and uncertainties include, in particular, final determination of revenue, actual costs and expenses incurred during the quarter and decisions regarding reserves and allowances made in the normal course of the accounting close for the quarter, which at this time is not yet complete. Additionally risks are detailed in the Company's filings with the Securities and Exchange Commission, including its report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 28, 1997. The Company may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the Securities and Exchange Commission and its reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company. Readers should carefully review the risk factors described in the documents the Company files from time to time with the Securities and Exchange Commission. CONTACT: Diamond Multimedia James M. Walker, 408/325-7333 Ken Wirt, 408/325-7376 or FRB See Federal Reserve Board. San Francisco Ann Trunko, 415/986-1591 (general information) Bonnie McBride, 415/986-1591 (analyst contact) |
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