Nvidia turned a profit last quarter


— 9:50 AM on November 7, 2008

After multiple quarters of record financial results, Nvidia posted a $120.9 million net loss in August, blaming among other things a $196 million charge it took to cover repairs for failing notebook graphics processors and chipsets. How have things evolved since then?

The company has now announced results for its third fiscal quarter, which ended on October 26, and it's apparently managed to make a profit again. Nvidia has posted net income of $61.7 million for revenue of $897.7 million—a clear drop from the $1.12 billion revenue and $235.7 million net income it posted in the same quarter a year ago, but still an improvement from the previous quarter's results. (Q2 revenue was $892.7 million.) Nvidia also notes that its non-GAAP net income is actually $111.4 million, once you exclude "stock-based compensation charges, a non-recurring charge against cost of revenue related to a royalty dispute, a restructuring charge against operating expenses, and the associated tax impact."

Nvidia CEO Jen-Hsun Huang seems to have a positive outlook, too. He says in the press release, "We transitioned our performance segment GPUs to 55 nanometers and are now poised to recapture lost share. We entered the fastest growing segment of the PC market with our first notebook chipset for Intel processors, and delivered on several exciting new growth initiatives." Those initiatives include three-way SLI support for Intel Core i7 platforms.

If anything, the GeForce 9400M mobile chipset could really help Nvidia's bottom line if it gets as popular as some think. We heard last month that certain notebook vendors expect the chipset to find its way into 20% of Intel-powered notebooks, and the top three PC vendors—HP, Dell, and Acer—all have 9400M-based notebooks in the pipeline.

 
   
Register
Tip: You can use the A/Z keys to walk threads.
View options

This discussion is now closed.