Published in Graphics

Nvidia to write off $150 to $200 million

by on03 July 2008

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Update: Lowers revenue expectations


Nvidia is not doing so great. MarketWatch has just announced that Nvidia expects its second-quarter revenue and gross margin to be lower than its previously announced forecast.


Nvidia now expects revenue from $875 million to $950 million and it plans to take a $150 million to $200 million loss for charges related to expenses for "a weak die/packaging material" used in previous generation products for notebook systems. 

After this announcement Nvidia's stock went to $18.03 and lost an additional $3.84, and investors are really nervous about it.

You can read more here.

Update:
Over the evening, Nvidia lost $3.95  or 21.91% in after hour treading. Many analysts have expected 1.01 billion of revenues. The official line from Nvidia actually includes everything that we have been talking for the last few months.

"The estimated decrease in revenue and gross margin is due to several reasons: end-market weakness around the world, the delayed ramp of a next generation MCP, and price adjustments of our GPU products to respond to competitive products,".

In plain words this means, GPU average selling prices are down, chipset products were slow to market and this business unit is severely down and we don't buy the market weakness card as AMD and Intel dint really complain about this one. Nvidia is really knocked out this time, but we wouldn't be worried that this is something serious, they will come back and be fine.  

Last modified on 03 July 2008
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