Multimedia

Diamond Multimedia Systems, Inc.

The Company

Diamond Multimedia is currently the largest add-in graphic board supplier, shipping nearly twice as many units as its nearest competition. The company is currently shipping products based upon silicon chips from S3, 3D labs and 3Dfx. Despite being the largest boardmaker DIMD has encountered problems, primarily bumpy earnings due to declining shipment volumes, that have discouraged investors. Overall the company's products have received favorable reviews despite barbs about its lofty prices. Trading just $1 above book value of $6.57 and sporting a cash per share percentage of 38%, along with an insignificant debt to equity ratio, DIMD is worth another look. Investors are cautioned that DIMD latest earnings figures (that are already dismal) do not reflect a recent $76 million dollar write-off of in process technology costs.

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