Published in Graphics

Nvidia loses 201 million in Q1 of fiscal 2010

by on08 May 2009

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Higher revenue than last quarter


Nvidia
has announced that its revenue totaled 664 million dollars or 38 percent up over last quarter. In its last quarter, Nvidia had a revenue of $481 million which was 60 percent less than a year before. Nvidia calls this quarter Q1 2010 and it encompasses the period between 26 January to 26 April.

Nvidia’s loss was 37 percent per share, but the negative $201 million number also includes $140 million of a onetime charge, where Nvidia purchases some bad stock options from its employees. The non-gap loss closes at $47 million dollars, or 9 cent per share.

Nvidia’s desktop sales accounted for 53 percent of the revenue, and this segment did some 50 percent better than in Q4 2009, as in the last quarter Nvidia suffered from bad inventory and that its partners simply didn’t want to buy and stock a lot of chips. Nvidia grew six percent in desktop market share. Some 65nm products were written off and the 55nm GPUs are selling quite well. Inventory by Nvidia partners is at a relatively healthy and they decreased from 144 to 64 days.

The Notebook market saw sequential growth of 28 percent. Nvidia explains this with increased OEM demand and OEM inventory corrections didn’t happen this quarter.

MCP was 28 percent of the revenue, and it's up 94 percent quarter-on-quarter, mainly due to a huge pick up in AMD mainstream chipset demand, as well as Intel based notebook segment. This definitely implies that AMD is coming back and that it gained some nice market share with its new K10.5 45nm processors. Of course Nvidia is happy about Acer who started shipping Ion and this should increase MCP sales in the time to come.

Workstation and professional graphics failed to impress and this market segment stayed at 16 percent revenue, which doesn’t, shows any sign of recovery. The good products are there, but the market who usually buys these products is being much more cautious about any non-essential changes and upgrades. As Jensen said the market will recover, but this is the main reason that sunk Nvidia’s profit. Nvidia’s safe haven in the workstation market has ceased to exist, at least for the time being.

Nvidia talks about Cuda, Tesla and PhysX but neither of them are making any serious money, at least nont in present. Jensen also confirmed that the company is heavily involved on 40nm products. Nvidia fell some 7 percent after announcement and now in early hours of trading it continues to drop further by almost 9.5 percent at press time. 
Last modified on 08 May 2009
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