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NVIDIA reports another bad quarter

It's been a rough year for NVIDIA. Typically, the graphics giant is one of the most profitable companies in the technology industry. That all changed in 2008 with NVIDIA seeing one of its first quarterly losses in a very long time.

NVIDIA's first loss in 2008 was due in part to a onetime charge it took related to the repair and replacement of faulty GPUs in notebooks form some of the biggest computer makers around including Dell and HP.

NVIDIA announced its Q3 fiscal 2009 financials this week and reported a significant 20% reduction in quarterly revenue compared to the same quarter in fiscal 2008. NVIDIA took a one-time charge of $8.3 million related to the layoff of 360 employees globally. The pre-tax charge was to cover the cost of severance and related expenses.

Jen-Hsun Huang, NVIDIA President and CEO said in a statement, "We made good progress on multiple fronts during the quarter. Improving gross margin while managing operating expenses enabled us to significantly improve our operating fundamentals. We transitioned our performance segment GPUs to 55 nanometers and are now poised to recapture lost share.”

“We entered the fastest growing segment of the PC market with our first notebook chipset for Intel processors, and delivered on several exciting new growth initiatives -- 3-way SLI for the Intel Core i7 processor platform, Quadro CX for Adobe CS4 creative professionals and the Tesla supercomputing processor."

For the three-month period ending on October 26, NVIDIA's profits sank by a 74% to $61.7 million, working out to 11 cents per share. In the same quarter last year, NVIDIA turned a tidy $235.7 million in profit.

NVIDIA has big expectations for its 9400M notebook GPU that it believes could capture as much as 30% of the notebook market. At this point NVIDIA has to be hoping the new GPU will help pull it back into its past financial performance.

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No SLI for most
By Dribble on 11/7/2008 11:34:20 AM , Rating: 2
Obviously the main reason for Nvidia's loss is Ati finally getting competitive, and the dodgy mobile chips can't have helped. However it's also got to be a problem that the only SLi motherboards available are expensive and unreliable, and hence nearly no one has one.

As an 8800GT owner my best upgrade currently is a 2*4850 in Xfire as my motherboard like most out there supports Xfire, but if I had Sli it would be much cheaper to just chuck a second 8800GT in.

X58 can't come quick enough for Nvidia I suspect - not that I have much sympathy with Nvidia - it was there choice to restrict SLi.

RE: No SLI for most
By Lakku on 11/7/2008 6:18:50 PM , Rating: 2
As stated above, unless you meant a loss in total revenue, nVidia did not have a loss. AMD has lost money in every quarter now for probably 2 years. But yes, competition does hurt the bottom line, but am glad it's there. Waiting for X58 myself, as I refuse to use nVidia chipsets again, but SLi is much better than Xfire, plus I have a hard time wrapping my head around putting a pair of cards in their that average 65-70C temps at idle. Did they ever fix that?

RE: No SLI for most
By Pirks on 11/7/2008 7:28:33 PM , Rating: 2
Console ports fixed that already by eliminating the need for ultra high end GPUs

RE: No SLI for most
By teldar on 11/9/2008 8:47:00 AM , Rating: 2
Actually, you could get the 4870x2 as your best upgrade, however, perhaps not your most cost effective upgrade.
And you wouldn't need two individual cards, just one.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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