3dfx has issued a profits warning, saying that revenues for the three months ending July 31 will fail to meet expectations.
The company blames component shortages for the disappointment. 3dfx designs and markets video-graphics chips and video-accelerator boards.
Doctor Alex Leupp, 3dfx’s CEO, said: "This shortfall is extremely frustrating, as the company has been on course for returning to operating profitability." He continued: "We believe this temporary component shortfall will result in deferred, rather than lost revenues." He also said the company remained confident about the next quarter.
Returning the company to profitability has been the main aim of Leupp since he took over as CEO six months ago. In a statement, he stressed that the component shortage was the fault of a third-party supplier, and he remained confident that 3dfx would return to profit in its third quarter.
3dfx’s stock value remained stable after the announcement, dropping by $0.125 to rest at $8.8125. The stock fell to $8 in after hours trading.