Nvidia posts a $121 million loss
Things will only get worse
NVIDIA HAS POSTED its results for the second quarter of this year.
The company has amassed a loss of (USD) $121 million, with a five per cent decrease in revenues year-on-year for the given quarter.
However, for the six months ending July 27, 2008, revenue actually increased to $2.05 billion compared to $1.78 billion for the six months that ended July 29, 2007 - an increase of 15 perc ent.
As we are all fully-aware, during this second quarter, Nvidia recorded a $196 million charge against cost of revenue to cover costs arising from a weak die/packaging material set in certain versions of the previous generation MCP and GPU products used in notebook systems.
Nvidia blamed this figure for the loss, and also what the firm characterised as a 'weak market for desktop PCs'.
The press release also stated that Nvidia bosses miscalculated 'competitive price positions' further pressurising desktop GPU business - i.e. Nvidia launched average expensive product, whilst DAAMIT hit back with high-performing, affordable parts.
Nvidia is still receiving a battering from the recent spout of problems concerning both its laptop and desktop GPUs , and the INQUIRER has previously commented that issues resulting in the $196 million charge may not have been fully disclosed, prompting speculation that further charges may be incurred within the future.
Nvidia is also facing a further three quarters without any considerably new product, whilst DAAMITs new lines will be available on the market. µ
Comments
Listen to the NVDA CC
This article is full of lies. Anyone can listen to the CC at Nvidia's website.Jen said the 196 million writeoff was full and they didn't even have to give that much they were being nice. THEY ARE NOT GOING TO OWE ANY MORE.
Also they have new products going out. GT200b at $399 in september.
Also shows that they are not out of the chipset business which was a lie and they didn't lose any top tier card make.
Amazing how you guys aren't being sued yet.
Alias
So, Charlie, got tired of being criticized for flaming NVIDIA, so you changed your name?Pocket Change
$121 million loss, they'll find that down the back of their arm chair...their sofa will keep em going a while longer ;)Umm - Die shrink next month
Doesn't this reduce cost and speed up current cards? :)So you're telling us Nvidia has no card coming for 9months+? I'm guessing 6-7 months tops as usual. Also just a die shrink will raise margins and speed all their cards up (gtx260x280 shrinks should be on a shelf shortly), which are already quite good values after the price cuts. AMD's top card is $560 (if you can get it anywhere, newegg does show some today though), while Nvidia's is going for $410 at newegg (gtx280). Not bad.
Let's not forget that without the charge they still made a TON of money compared to AMD. A one time charge is nothing when you're going to sue to get it right back...LOL. Apparently you guys aren't aware of the fact that they didn't make these defective chips eh? They will sue. Also they are already 1/2 off the hook for HP's problems anyway. I'm sure they'll sue for the rest from whoever it was that produced them (one a total is had, they'll go after the maker for sure, as they've already said).
For some reason, all of wallstreet raised their stock price 10% on this "terrible quarter". LOL. Care to place a bet on who makes money first, AMD or NV?...ROFL.
I see a whole lot of rumor and innuendo in your post but no facts to back it up. You may not call a die shrink a new product, but it's all Nvidia needs right now. Until then, they'll just be keeping AMD from getting profits with lower pricing just like Intel does to AMD. $121mil loss is nothing when you make 850mil/year with NO DEBT (+1.6Bil in the bank) and your enemy is making 4bil losses, with around 5Bil in debt. Who's going to win that war?
The only thing that can change AMD's future outlook is a 4-10Bil victory in their case against Intel. Which I fully expect to happen (or Intel will just pay early when they realize a loss is imminent in court). But they have to make it that far first. This would allow them to start fresh. 5bil would get them out of debt so they could stop throwing away money on interest.
When AMD made bad barcy's the buck stopped with AMD. When Intel made bad p3's, caminogate etc, the buck stopped with Intel. The difference here is, the buck DOES NOT STOP with Nvidia. It's going to stop on the doorstep of the manufacturer of the bad chips. Which has long since been corrected in all shipping products so YMMV with your BS future assumptions don't ya think? Refrain from taking up Charlie's fact-less posts about NV. It's making you all look bad.
Cry All you want
Nvidia has been in my heart since SLI came out, but I like the little guys.However ATI solutions and next generation technologies that ATI is developing under AMD is pretty amazing.
You can shrink the die for the GT series all you want it'll still have a heft price tag, which even though cheaper, will cut the cost of the 4870X2 which destroy any competition from Nvidia.
Better drivers from AMD forecast even better performance as well.
Nvidia is projected to lose even more money in the next quarter, and price cuts might not even help, as AMD will continue to slash prices to stay competitive.
Nvidia is going to hurt since it has yet to get a license for Nelahem products.
GL GREEN TEAM!
Charges
It's nice to know what kind of losses nVidia had and the charge they took, but where's the article for AMD/ATI losses? It looks like AMD took an $876 million charge for former ATI divisions. So it looks like niether company made it through the quarter without a charge and it's unlikely the charges will ruin either company.Stupidity
Do you know it beggars belief what gets written in the comments."..its amazing how you guys haven't been sued yet.."
Pretty simple stuff this, you can't be sued for posting articles based on facts and the truth.
The reason there is no lawsuit is because its substantiated by facts.
In the UK, generally speaking, you can't alter reality with LSD - maybe thats too subtle a comment for Americans so I'll explain:
You can't alter reality with money (AKA pounds shillings and pence or "LSD" in old terms)..
QED.