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.