Nvidia Posts $120.9m Q2 Net Loss
Graphics chip maker Nvidia has reported a net loss and drop in revenues for the second quarter of the 2009 fiscal year.
Net loss for the second quarter totaled $120.9 million, compared with a profit of $172.7 for the same period the year prior.
The quarterly results included a $196 million charge to cover warranty, repair, return, replacement and associated costs related to previous generation MCP and GPU products used in notebook computers.
Second quarter revenue dropped five percent from $935.3 million a year ago to $892.7 million, although revenue for the first half of the year to July 27, 2008, increased 15 percent from $1.78 billion to $2.05 billion.
"Our Q2 financial performance was disappointing," said the company’s president and CEO Jen-Hsun Huang. "The desktop PC market around the world weakened during the quarter. And our miscalculation of competitive price position further pressured our desktop GPU business.
"We have a great product lineup and, having taken the necessary pricing actions, we are strongly positioned again. Our focus now is to drive cost improvements and to further enhance our competitiveness through the many exciting initiatives we have planned for the rest of the year.”
The firm also announced that it was increasing its share buyback program by $1 billion to $2.7 billion.