Nvidia's second-quarter results are in, and they're not as rosy as usual. The firm formally lost $120.9 million, while taking in revenues of $892.7 million. Revenues were down about five percent from the same quarter last year.
The firm blamed what it called a "disappointing" performance on several factors. One of those, of course, was a $196M charge it took to cover repairs (and anticipated repairs) "arising from a weak die/packaging material set in certain versions of our previous generation MCP and GPU products used in notebook systems." Yep, it's those failed GPUs taking their toll. Another factor was what it characterized as a weak global market for desktop PCs.
The final factor in the loss? "[O]ur miscalculation of competitive price position further pressured our desktop GPU business." They're most likely talking about the fact that the GeForce GTX 260 and 280 launched at $649 and $399, with the GeForce 9800 GTX hanging out between $299 and $229, which flew like a brick. Radeon HD 4850 and 4870 cards were much better values. Now, as we noted yesterday, Nvidia and its "board partners" have chopped prices dramatically by employing a combination of outright reductions, special discounts, mail-in rebates, and mirror-based optical illusions that can bring the net price of a GeForce GTX 280 to about 400 bucks at Newegg. Similarly, the GTX 260 can be had for about $270, right in line with the price of a Radeon HD 4870. Consequently, the firm asserts, "We have a great product line-up and, having taken the necessary pricing actions, we are strongly positioned again."
Nvidia also held a conference call to discuss these results, but I totally missed it.