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Follow us on FacebookNvidia takes a big hit in the second quarter
@ 2008/08/13The company posted sales of $893 million, down 23% from $1.15 billion the first quarter and down 5% from $936 million year over year. In a rare event, Nvidia reported a hefty loss of $120.9 million, compared to a net income of $211.8 million in the first quarter.
Nvidia said that its GPU replacement program had a price tag of $196 million. CEO Jen-Hsun Huang said that while the failures affected a relatively small percentage of its total GPU output, repairing an entire notebook “can be expensive”. Huang also admitted that Nvidia underestimated the “price/performance” of AMD’s/ATI’s most recent graphics chip, resulting in a wrong position of its products and forcing the company to adjust its pricing during the quarter.
Nvidia said that its GPU replacement program had a price tag of $196 million. CEO Jen-Hsun Huang said that while the failures affected a relatively small percentage of its total GPU output, repairing an entire notebook “can be expensive”. Huang also admitted that Nvidia underestimated the “price/performance” of AMD’s/ATI’s most recent graphics chip, resulting in a wrong position of its products and forcing the company to adjust its pricing during the quarter.
