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.