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Nvidia revenues drop 5% for Q2

Net loss hits $120.9 million, but H1 revenues were up 15% on the previous year

Graphics card manufacturer Nvidia has announced results for its second financial quarter of 2009, with a revenue fall over last year's three months to the end of July.

The company posted sales of USD 892.7 million compared to last year's Q2 figure of USD 935.5 million - a drop of 5 per cent - as the net loss was pegged at USD 120.9 million.

A big contributing factor to that loss was a USD 196 million charge "against cost of revenue to cover anticipated customer warranty, repair, return, replacement and associated costs arising from a weak die/packaging material set in certain versions of our previous generation MCP and GPU products used in notebook systems."

Figures for H1 were more promising overall, however, with a 15 per cent rise in revenues over the same period in 2008 - USD 2.05 billion as compared with USD 1.78 billion.

"Our Q2 financial performance was disappointing," noted the company's president, Jen-Hsun Huang. "The desktop PC market around the world weakened during the quarter. And our miscalculation of competitive price position further pressured our desktop GPU business.

"We have a great product line-up and, having taken the necessary pricing actions, we are strongly positioned again. Our focus now is to drive cost improvements and to further enhance our competitiveness through the many exciting initiatives we have planned for the rest of the year.

"In contrast, the rest of our businesses did not exhibit the same dynamics as our desktop business. The notebook GPU, MCP, and Professional Solutions groups grew a combined 27 per cent year-over year."