S3 Inc. reported today reported that net revenue for the third quarter of 2000 was $140.0 million, compared to $70.5 million for the third quarter of 1999.
This included revenue from the Rio operations of Diamond Multimedia, which S3 acquired in 1999. However, losses from Rioport.com, amortization of goodwill, and charges related to the shutdown of S3's multimedia board business resulted in a loss of $37.5 million, or 40 per share.
Net loss for the quarter inclusive of goodwill and all charges was $75.6 million, or 82 cents per share, compared with a net loss of $11.1 million, or 20 cents per share for the third quarter of 1999.
In addition to discontinuing its board operations, the Santa Clara, Calif., company is in the process transferring of its graphics chip business to a joint venture with Via Technologies Inc. of Taiwan.
"We have made the difficult decisions that will enable us to focus our efforts toward our high-growth emerging businesses and leadership technologies," said Kenneth F. Potashner, chief executive officer and chairman.
Potashner said the Rio Internet audio player is now the dominant brand in its category, and "we have established product and technology roadmaps that we expect will fuel substantial growth opportunities for us going forward. We are shipping both our sports versions of our Rio product to Nike and our Rio Receiver product to Dell."