Either way you look at it, the results for NVIDIA for the first quarter of the company’s fiscal 2010 year weren’t very inspiring:
- Net loss of $201.3 million, 37 cents a share
- Revenue drop of 42% to $664.2 million from $1.15 billion
- Gross margin falls to 28.6% from 44.6%
If you want to read the entire conference call transcript (and who doesn’t) then pop over this link for the goods.
THE CHIPS MAY BE DOWN but Tegra will save the day, according to Nvidia CEO, Jen-Hsun Huang, speaking to analysts about his firm’s first-quarter loss yesterday.
The green goblin posted a net loss of $201.3 million – 37 cents a share – with revenue down 42 percent year on year from $1.15 billion to $664.2 million.
Huang said the good news, however, was that Nvidia beat analysts’ estimates and the firm’s inventory dropped from a daunting 144 days to just 64 days sequentially. “We made good progress managing expenses and significantly reducing inventory,” he said.
In Q108, Nvidia had posted a $176.8 million profit, but the firm took solace in the fact its quarterly revenue grew 38 per cent sequentially from Q408 and beat analyst’s expectations for $534 million revenue in the quarter.
Huang said the firm is pinning its future hopes on the Tegra system-on-a-chip (SOC) and the hope that Windows 7 will provide new avenues of opportunity in graphics based applications.
“Of all the products in our company, Tegra long term has the largest TAM (Total Available Market),” said Huang, noting that Nvidia had been “investing in Tegra for about four years” and had 500 people working on the project.