Friday, May 8th 2009
NVIDIA Posts Net Loss of $200 Million
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:
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 www.nvidia.com/ir and at 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
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.
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 www.nvidia.com/ir and at 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.
52 Comments on NVIDIA Posts Net Loss of $200 Million
The cost of the faulty gpu's was last quarter or the quarter before it. So again not this quarter.
And Intel i7 accounts for less than 1% of the sales so that can't hurt them (yet!).
I believe the current loss is directly related to the fact that nVidia doesn't make enough money on their chips. Their gross margin is down the sewer.
The mammoth sized GT200 chip is being sold way to cheap considering it's size and it's PCB is much more expensive then RV7xx's PCB.
AMD nVidia chipsets are being sold cheaper than their AMD counterparts and their Intel chipset are not really taking off in sales.
It's a common misunderstanding that ATI & nVidia make most of their money (i mean profit) in the low-end. I clearly remember a graph from both companies that showed that the most money is actually made in the high-end where profit margins are (normally) through the roof. Problem for nVidia now is that their high-end doesn't have a high enough margin to compensate the miniscule profit margin they make in the low-end.
www.gamasutra.com/php-bin/news_index.php?story=23315
The economy is in the toilet. Nobody is making record profits right now. Nvidia losing money in the first quarter means precisely nothing.
:shadedshu
There's nothing wrong with ATI chips they are very competitive and often beat nVidia price/performance wise.More or less correct. While they don't make a huge profit off the higher end chipsets they make enough money to pay for all the R&D costs they put into it, eventually these chips get phased/recycled into the mid/low-end market where it begins to actually make serious money
(as oppose to offsetting the R&D costs) All of the crap in your computer is made of copper and sand, people, neither of which are really expensive. They own all the factories and equipment to manufacture the boards and a lot of the process is automated thus reducing the manpower costs.
It's pretty asinine to say stuff like that when ATI is not doing any better. That's the point of my post, which you clearly missed.
Quite frankly, this entire discussion has nothing to do with the 'american' economy. The problem is, as you said, global, and nothing in my post indicated anything to the contrary. In fact, I never once even mentioned America in my original post. But thanks for coming out. :rockout:
Wake up people.
$222: only gpu's (not even Firestream)
$222: only gpu's (not even Firestream)
Actually it includes all the business that ATI brought to the merger as that was not finalized for accounting purposes until after the quarter was reported.
(thanks for taking the rap for me, i needed that money to see the new star trek movie)
we should get this back on topic :)
Funny thing is...... ATi will probably post a loss too, although thats just a guess.
news.cnet.com/ATI-revenue-jumps-40-percent/2100-1006_3-5129803.html
www.geek.com/articles/games/ati-enjoys-revenue-profit-surge-20040629/
www.cbc.ca/money/story/2005/03/24/ati-050324.html
So obviously ATI didn't have a bigger market share at the expense of their gross margin like nVidia is doing now.
BTW the ATI departement posted a $1 million profit in Q1 2009.Don't you think their revenue would be higher if they included chipsets, ...? :roll:
Revenue != profit