MHMY
Never heard of them.
Until today
at 345pm. Then they were stedily on the bid and a
tick over the ask.
Looks like S3 wants the
market to know that a buyback is underway. S3 gave the
analysts/ MMs / shorts something to sleep
on.
Thought that the conference call was interesting. ALL of
the top tier analysts were there. They can sense the
upside at S3 but are afraid to be burnt by the graphics
business again.
Highlights:
-shares outstanding
92m 98m diluted.
-non-gfx rev fy99 200m expect
300-350m fy00.
-rev was 65/35 gfx/non-gfx this
qtr.
-huge penalties if Via deal falls through or gets
delayed. deadline 6/29.
-expect a convertible debt
offering @ mid-year based on the UMC shares. S3 gets $$$$
for investment from this. Delays tax liabilty from
direct sale. Allows S3 to keep strategic stake in UMC
(e.g.- access to capacity).
-Flash memory remains on
allocation.
-Rioport mgmt in place. Now it is in a position to begin
discussions w/ bankers regarding approaching equity
mkts.
-S3's top priority is the sale of the board business.
Discussions underway with many of the same parties to the gfx
sale discussions(6). This deal could be structured as
a partnership.