NVIDIA posts losses of more than $200M for the quarter

Subject: Graphics Cards | May 8, 2009 - 03:39 PM |
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Wouldn't it be great to lose about $201 million in the span of 3 months but still have a positive outlook on the future?  That's just what NVIDIA is talking about this week as the quarterly earnings call results are spread across the media.  What is most interesting to me is how varied the opinions are on what NVIDIA's CEO, Jen-Hsun Huang, had to say.  TG Daily got the distinct impression that NVIDIA's Quadro line of products would be the immediate saving grace for NVIDIA's bottom line while Sylvie at The Inquirer says that "the firm is pinning its future hopes on the Tegra system-on-a-chip (SOC)..."

Either way you look at it, the results for NVIDIA for the first quarter of the company's fiscal 2010 year weren't very inspiring:

  • Net loss of $201.3 million, 37 cents a share

  • Revenue drop of 42% to $664.2 million from $1.15 billion

  • Gross margin falls to 28.6% from 44.6%

NVIDIA's is of course holding a positive outlook for the future as you would expect from any company with shareholders to please.  With the coming releases of ION platforms, continued success of Apple's MacBook and iMac line of computers and the upcoming cycle to Windows 7, NVIDIA shouldn't have a problem maintaining the status quo at the very least.  What I am curious to see from the company is their answer to all of the Larrabee talk - what will GT300 actually bring to the table?

If you want to read the entire conference call transcript (and who doesn't) then pop over this link for the goods.

THE CHIPS MAY BE DOWN but Tegra will save the day,
according to Nvidia CEO, Jen-Hsun Huang, speaking to analysts about his
firm's first-quarter loss yesterday.

The green goblin posted a net loss of $201.3 million - 37 cents a
share - with revenue down 42 percent year on year from $1.15 billion to
$664.2 million.

Huang said the good news, however, was that Nvidia beat analysts'
estimates and the firm's inventory dropped from a daunting 144 days to
just 64 days sequentially. "We made good progress managing expenses and
significantly reducing inventory," he said.

In Q108, Nvidia had posted a $176.8 million profit, but the firm
took solace in the fact its quarterly revenue grew 38 per cent
sequentially from Q408 and beat analyst's expectations for $534 million
revenue in the quarter.

Huang said the firm is pinning its future hopes on the Tegra system-on-a-chip (SOC) and the hope that Windows 7 will provide new avenues of opportunity in graphics based applications.

"Of all the products in our company, Tegra long term has the largest
TAM (Total Available Market)," said Huang, noting that Nvidia had been
"investing in Tegra for about four years" and had 500 people working on
the project.

Source: TG Daily

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