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EXHIBIT 12
S3 INCORPORATED
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
THREE MONTHS ENDED SIX MONTHS ENDED
----------------------- ---------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1998 1997 1998 1997
--------- --------- --------- --------
Income (loss) before income taxes and equity
in net income of joint venture $ (26,678) $ (9,927) $ (26,958) $ 8,944
Add fixed charges 1,652 1,731 3,382 3,475
--------- --------- --------- --------
Earnings (as defined) $ (26,678) $ (8,196) $ (23,576) $ 12,419
========= ========= ========= ========
Fixed Charges:
Interest expense $ 1,530 $ 1,609 $ 3,139 $ 3,231
Amortization of debt issuance costs 122 122 243 244
Estimated interest component of rent expense 432 432 863 863
--------- --------- --------- --------
Total fixed charges $ 2,084 $ 2,163 $ 4,245 $ 4,338
========= ========= ========= ========
Ratio of earnings to fixed charges -- -- -- 2.9
========= ========= ========= ========
For the three months ended June 30, 1998 and 1997 and for the six month period
ended June 30, 1998, earnings were insufficient to cover fixed charges as
evidenced by a less than one-to-one coverage ratio. Additional earnings of $28.8
million, $10.4 million and $27.8 million were necessary for the three months
ended June 30, 1998 and 1997 and for the six month period ended June 30, 1998
respectively, to provide a one-to-one coverage ratio.
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