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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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RE: Lack of confidence
By Bigjee on 11/9/2008 3:25:01 PM , Rating: 2
quote:
Having read the news about Nvidias defective 8xxx series notebook parts and the way their ceo has been stepping on his own tongue lately, has led me to lose alot of confidence in their product. All this combined to the point I would go out of my way to not get a notebook computer especially with Nvidia hardware in it.


Just the 84XX and 86XX products. The 8800GTS G92 product you own does not suffer from the same defects. Most products effected are for the Laptop variants. I have been using Nvidia for a long time also (7950gt, 6600 GT, and the 8800 GTS G92) and they have all served me well. When the 8800 GTS was launched there was no worthy competitor (ATi especially ) that had a high end card to match the performance. The Ultra and 8800 GTX were king at the time. Now when the 4800 series is launched you shouldn't bash Nvidia for being a low quality manufacturer and having bad customer support.

And now with the 9400M (i've read reviews on MB's and MBP's and everyone is very happy with their 9600 and 9400 cards/chipsets. There are no driver issues or blue screening.

Don't get me wrong no manufacturer is perfect. But Nvidia still has me as a customer. I will continue to buy their products for as long as they are good.


"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

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