Nvidia posts loss, Q2 better than expected

By on August 7, 2009, 11:14 AM
Along with the GPU market as a whole, Nvidia appears to be on the road to recovery after seeing a 17 percent revenue jump. The company raked in $776.5 million in Q2, which compares favorably to $664.2 million the previous quarter, but is still 13 percent down on the same period. Although it yielded a net loss of $105.3 million, this too is an improvement over last year’s $120.9 million dive into the red.

Gross margin also rose to 20.2% from 16.8%, and non-GAAP results (which exclude a number of write-offs) actually showed $74.5 million in net profits. However, Nvidia’s results were negatively affected by an additional net charge of approximately $119.1 million to cover costs related to a faulty die and weak packaging material “used in certain versions of its previous-generation chips.”

This was Nvidia's second charge related to the faulty chips. The company recorded a $196 million charge during last year’s second fiscal quarter to cover warranty and product replacement costs associated with the issue. Nevertheless, CEO Jen-Hsun Huang is optimistic that the business is recovering, product demand is improving, and strategic investments in technologies such as Tesla and Tegra are leading to new growth.




Add New Comment

TechSpot Members
Login or sign up for free,
it takes about 30 seconds.
You may also...
Get complete access to the TechSpot community. Join thousands of technology enthusiasts that contribute and share knowledge in our forum. Get a private inbox, upload your own photo gallery and more.