NVidia’s quarterly financials were announced yesterday, and NVidia wound up taking a pretty big hit this quarter. What was the culprit? Well, as usual the Recession and Lacking Consumer Demand made an appearance, but the big hit was the $193.9M charge related to settlement costs in the class action lawsuit related to their notebook chipset problems.
“Rapidly changing market conditions made for a challenging quarter,” said Jen-Hsun Huang, Nvidia’s CEO and president. “We delivered excellent results in Quadro professional graphics, Tesla GPU computing, and our Tegra system-on-a-chip business. But our GeForce consumer business fell significantly short of expectations amid weak PC demand in Europe and China. Although demand among end-users remains uncertain, we expect to drive revenue and grow market share with new products that are gaining momentum in each of our businesses.”
Nonetheless, NVidia released several new products right at the end of the quarter (new Quadros, 3D Vision Pro, new GeForce’s like the 460), and they’re getting great reviews in the wake of new stuff like StarCraft2. Plus, they must be doing something right if a $193M writedown became only a $141M loss in the quarter. Hopefully with that out of the way, next quarter will look up again.
