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NVIDIA Posts Net Loss of $200 Million

Discussion in 'News' started by malware, May 8, 2009.

  1. malware New Member

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    NVIDIA Corporation today reported financial results for the first quarter of fiscal 2010 ended April 26, 2009. For the first quarter of fiscal 2010, revenue was $664.2 million compared with $1.2 billion for the first quarter of fiscal 2009, a decrease of 42 percent. During the first quarter of fiscal 2010, NVIDIA recorded a non-recurring charge of $140.2 million in connection with a previously announced cash tender offer to purchase employee stock options. This charge represents stock-based compensation expense associated with the stock options that were tendered, plus associated payroll taxes and professional fees.
    NVIDIA's results for the first quarter of fiscal 2010, computed in accordance with U.S. generally accepted accounting principles (GAAP), included a net loss of $201.3 million, or $0.37 per share. Non-GAAP net loss for the first quarter of fiscal 2010, which excludes recurring stock-based compensation charges, the non-recurring charge related to the tender offer, and the associated tax impact of these items, was $46.7 million, or $0.09 per share.

    "We made good progress managing expenses and significantly reducing inventory, while continuing to invest in our growth strategies," said Jen-Hsun Huang, president and CEO of NVIDIA. "The GPU is ever-more central to our computing experience. There is a rapidly growing number of applications that rely on the GPU, and the industry is gearing up to launch the next generation operating systems that adopt GPU computing."

    First Quarter Fiscal 2010 and Recent Highlights:
    • Revenue grew 38 percent sequentially from fourth quarter fiscal 2009. Inventory decreased from 144 to 64 days sequentially.
    • NVIDIA grew share, for the second consecutive quarter, in the total desktop standalone GPU segment from 63 percent to 69 percent from the fourth quarter of calendar 2008 to the first quarter of calendar 2009, as reported in Mercury Research's First Quarter PC Graphics Report 2009.
    • NVIDIA and Acer set a new standard for small PCs with the introduction of the world's first NVIDIA ION platform, the Acer AspireRevo. No larger than a typical hardcover book, the AspireRevo is a fully capable desktop with advanced graphics and impressive multimedia features.
    • NVIDIA released its OpenCL driver and software development kit to developers participating in its OpenCL software Early Access Program. NVIDIA is the first company to release OpenCL drivers to developers.
    • NVIDIA was first to demonstrate DirectX Compute on Microsoft Windows 7 at the Game Developers Conference. The upcoming DirectX Compute API for Vista and Windows 7 supports NVIDIA's current DX10 GPUs, as well as the company's future DX11 GPUs.
    • NVIDIA demonstrated the NVIDIA Tegra 600 Series computer-on-a-chip that enables an always-on, always-connected HD netbook that can go days between battery charges.
    • NVIDIA launched five new consumer applications accelerated by the CUDA architecture on NVIDIA GPUs – Super LoiloScope Mars (video editing); ArcSoft SimHD (DVD image enhancement); Nero Move It and Cyberlink MediaShow Espresso (video format conversion); and Motion DSP vReveal (real-time video quality enhancement).
    • NVIDIA and GeoStar, a leading Chinese geophysical services provider, unveiled the launch of a new Tesla-based hardware and seismic software suite that dramatically accelerates the performance of complex seismic data computation for oil and gas companies in China.
    • NVIDIA and BNP Paribas' Corporate and Investment Banking division recently replace 500 traditional CPU cores with a smaller cluster consisting of CPU servers and two Tesla S1070 systems, which require one-tenth the power. Taking into account the dramatic acceleration achieved using Tesla GPUs, the division is using 190-times less electricity than before.
    • NVIDIA announced that Harvard University has been recognized as a CUDA Center of Excellence for its commitment to teaching GPU Computing and its integration of CUDA-enabled GPUs for a host of science and engineering research projects.

    Conference Call and Web Cast Information

    NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2010 financial results and current financial prospects today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To listen to the call, please dial (212) 231-2900. A live Web cast (listen-only mode) of the conference call will be held at the NVIDIA investor relations Web site http://www.nvidia.com/ir and at http://www.streetevents.com. The Web cast will be recorded and available for replay until the Company's conference call to discuss its financial results for its second quarter fiscal 2010.

    Non-GAAP Measures
    To supplement the Company's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP operating expenses, non-GAAP net income (loss), non-GAAP net income (loss) per share, and free cash flow. In order for our investors to be better able to compare our current results with those of previous periods, we have shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude a non-recurring charge related to previously-announced tender offer, recurring stock-based compensation charges, and the associated tax impact of these items, where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less purchases of property and equipment and intangible assets. We believe the presentation of our non-GAAP financial measures enhances the user's overall understanding of our historical financial performance. The presentation of our non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

    Source: NVIDIA
  2. Mussels

    Mussels Moderprator Staff Member

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    *waits for ATI fanboys to start cheering in the streets*
  3. Paintface

    Paintface New Member

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    Party at my place tonight, nvidiots are welcome to join the family.
  4. Necrofire

    Necrofire New Member

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    One of two things happened:
    AMD's foot in the door turned into a takeover of the house,
    or,
    Nvidia's gpus work too well, you get one you don't need another for a few years at least.

    or
    Intel's GMA is finally catching up AHHAHAHAHAHAHAHHAAHHAHAAHAH


    Up till now I was thinking "poor AMD, they need something good so they can start winning again"
    Now I might have to make my next gpu an nvidia one.
  5. AsRock

    AsRock TPU addict

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    Well how i see it if either company went under it be one or the other that would rip us off lol. How ever does me a little feeling this will give ATI a little more chance to come back :).
  6. r1rhyder New Member

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    But you can be sure, the big boy's will still get thier bonus. :laugh:
  7. REVHEAD New Member

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    The beginning of the end for Nvidia.
  8. a111087

    a111087

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    i very much doubt that. Nvidia doesn't have to beg their customers as much as ATI because they have "blind followers" in form of unaware customers who frankly don't care what GPU they have.
    tkpenalty and Nick89 say thanks.
  9. soryuuha New Member

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    i like the way u think
  10. BumbleBee

    BumbleBee

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    I have always wanted to like ATI but can't I just can't get past their drivers and neither can game developers which is something most people don't know.
  11. largon New Member

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    Dunno what's the beef with ATi drivers?
    I got this HD4890 a few weeks ago and before that my previous ATi card was a X1900XT back in 2006, iirc. So past 3 years have been nV all the way for me. The point is, I have yet too see any issues or shortcomings with ATi drivers.
    $ReaPeR$ says thanks.
  12. Sihastru

    Sihastru

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    One part of the phrase excludes another and the third just messes everything up... your logic is seriously disturbed. So I am a follower, following someone blindly, I am unaware of it and I frankly don't care about it.

    In other words: one day I was born (wow, I just bought an nVidia video card, I am so happy), I am unaware of life (what is a video card?), I don't care if I live (**** nVidia), but I really don't want to die (I wouldn't get an ATI video card even if ATI is the last thing on earth and there are no sheep).

    Anyway, $200,000,000 is pocket change for nVidia... in case you were wondering.

    Edit: Forget about holy wars, just compare graphs, think about how it will be to live with a product for a couple of years, make an informed decision and then buy.
    Last edited: May 8, 2009
  13. btarunr

    btarunr Editor & Senior Moderator Staff Member

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    I'm pretty sure Intel IGPs outsell NVIDIA and ATI already.
  14. Sihastru

    Sihastru

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    Yes, Intel is the #1 graphics chip manufacturer in the world (unfortunately). Don't tell them, it's a conspiracy. Here's hoping for Larabee....

    And I do agree that if in this crisis situation, if a company makes a profit *cough*Apple*cough*, then they must be ripping us off... So expect almost everyone to post a loss, and think twice before supporting a company that actually post profits.

    Here's to boycotting Apple!
    Last edited: May 8, 2009
  15. REVHEAD New Member

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    Ok here we go.
    Nvidia mobile division 8600gt M failures cost them bigtime.

    Forcing consumers to use a onboard chip to run SLI upping the cost of manufaturing SLI based motherboards. Failed badly when OC comminity found out SLI boards were bad OCers compared to Intel based boards, fryed memory controllers didnt help with there 68i,780i boards. losses soon followed when ATI made Crossfire available on all Intel and AMD boards for free.

    Intel forcing Nvidia to drop the 3rd party chip for SLI, as they should, costing Nvidia there Motherboard manufacturing Business, there was no reason to buy a Nvidia based chipset motherboard anymore, so Nvidia lost that niche market.

    Nvidia purchase of Physx for a lot of money, has failed to lead to any results, in sales, or for that matter even really been needed for any games yet.

    So Motherboard bussiness gone, there graphics bussiness is finding it hard to come up with a competative./cost effective tech to combat ATI, so they are rebranding cards as new models and selling them for less.

    I am sure there is more but I cant think of it at the moment, if I was a Nvidia shareholder I would be very worried, and allso angry at some of there bussiness practices.

    Please dont flame me, I am just pointing out the obvious, I am not saying that this cant be fixed, I am just predicting this to be the beginning of the end, unless someone buys them out, and I would guess the Intel juggernaut will do this .


    Edit### forgot to mention there Vista Driver fiasco, on Vista launch they claimed there dx10 cards to be Vista ready, they were not, it took them 12 months to get a Stable Vista driver, 3 265 page threads on the Nvidia forums attest to this.
    Last edited: May 8, 2009
  16. somestranger26 New Member

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    I disagree, I'm an AMD/ATI fanboy but this is pretty typical of businesses in the semiconductor industry; one year you're on top of the industry and the next you're struggling to catch up. It happens to most of the big names, easy examples being NVIDIA and ATI playing leap frog all the time, and even Intel and AMD back when they went over to RDRAM and higher clock frequencies rather than more efficient architectures, followed up by AMD's release of the Athlon 64.
  17. v-zero Guest

    This is what happens when you combine lost market share in every customer space, with expensive design and production of a new monolithic architecture, and unexpected competition in the high-end space forcing a sell-at-a-loss market for nVidia.
  18. Mussels

    Mussels Moderprator Staff Member

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    in none of those times, did ATI's sales outrank Nvidias, or AMD's outrank intel.

    Even at teh peak of the athlon 64 during the P4's low, intel still had 80% of the market.
  19. Sihastru

    Sihastru

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    Tell me, REVHEAD, do your cross fired ATI 4870 cards artifact in the windows desktop all the time when using the full 2560x1600 resolution on your 3007? Because every ATI card I had in my rig artifacted like it was X-Mas every day on my 3007-HC2.

    Does the CCC reloads in Vista every 3-4 hi-res images when you're previewing images? Because my CCC did that every time... I am not on nVidia's side at this time because I am ignorant. I still have the ATI cards, they are in their boxes, waiting for the day ATI drivers will not make me pull out my hair. At least when you have a hardware failure, you can get a refund or exchange a product. When you have a driver failure, all you can do is suck it up.

    The hardware is great. Now work a little bit on the drivers. I would very much want to get two 4890 in CF in my main rig. But I am very much afraid to make the step.
  20. Mussels

    Mussels Moderprator Staff Member

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    if you're artifacting on the windows desktop, somethings really wrong with your PC.

    None of thats related to the topic and hand, start a new thread if you wish to discuss it.
  21. somestranger26 New Member

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    I'm not talking about the size of these companies, a loss is a loss; gain is gain. For example, it doesn't matter if Nvidia or ATI has a larger market share right now, the fact of the matter is that Nvidia lost market share to ATI and is suffering because of it, in addition to their defective laptop chip fiasco.
  22. Mussels

    Mussels Moderprator Staff Member

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    well said
  23. REVHEAD New Member

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    That is a negative to all the above, I am on Windows 7 now and no problems there either, my last ventrue with Nvidia was 680i and two 8800gtxs in sli .
  24. h3llb3nd4

    h3llb3nd4 New Member

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    %your name%--->:nutkick:<---nvidia
  25. MrMilli

    MrMilli New Member

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    I hope you do know that ATI was in the lead up until Q3 2006 ever since they launched R300. Before that nVidia was and before Geforce ATI was again. These two companies have flipped positions more than once and it will happed again for sure (it would be really naive to think otherwise).

    [​IMG]

    http://www.xbitlabs.com/news/video/display/20050426103105.html

    http://www.xbitlabs.com/news/video/display/20050127130508.html
    phanbuey and Arrakis+9 say thanks.

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