Nvidia posts $141-million loss for second fiscal quarter

Now we know why Nvidia issued that profit warning last month. Not only was its revenue lower than expected for its second fiscal quarter, but the company also posted a sizable net loss. Here's the extent of the damage:

  Q2 FY'10 Q1 FY'11 Q2 FY'11
Revenue $776.5 million $1,001.8 million $811.2 million
Net income -$105.3 million $137.6 million -$141 million
Gross margin 20.2% 45.6% 16.6%

Again, Nvidia blames both "economic weakness" in Europe and China and the popularity of integrated graphics for the poor results. The firm claims the economic weakness led to an inventory write-down. Today's announcement brings up one other factor, though: a $193.9-million write-off related to those chip packaging issues from a couple of years back. Nvidia says the charge covers "additional remediation costs, as well as the estimated costs of a pending settlement of a class action lawsuit."

Now for the good news. The company expects its gross margin to climb back to a healthier 46.5-47.5% this quarter, and it foresees a 3-5% increase in revenue. GAAP operating expenses should also add up to around $300 million, down from a whopping $618.4 million last quarter.

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