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3Dlabs to report losses

The graphics chipmaker's stock plunges nearly 25 percent after announcing a disappointing earnings projection.

3Dlabs' stock plunged nearly 25 percent in midmorning trading after the graphics chipmaker announced a disappointing earnings projection.

The company said that based on preliminary estimates, second-quarter revenues for 1998 are not expected to exceed $11 million and that it expects to report a loss. It contended that external factors, such as softness in the PC market and the Asian-Pacific economies, largely were to blame for its woes.

3Dlabs also said its chief financial officer, Doug Miller, had resigned. Miller will be succeeded by Tom Donohue, vice president of finance.

"We are extremely disappointed with our expected financial performance and the [effect on] our business this quarter," said 3Dlabs chief executive Osman Kent in a statement. "We do not expect to see a robust recovery in our business until the fourth quarter of 1998."

The company added it has identified a set of "short-term and long-term corrective actions" to combat its financial problems but it did not identify them.