Nvidia Posts First-Quarter Loss, Reduces Inventory
Nvidia Posts First-Quarter Loss, Reduces Inventory
Posted 05/08/2009 at 6:44am
| by Paul Lilly
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Another first-quarter revenue report, and another loss, this one from Nvidia. According to the report, the GPU chip maker's revenue slid 42 percent from last year, posting a net loss of $201.3 million, or 37 cents per share. That's a big change over last year when Nvidia posted a profit to the tune of $176.8 million, or 30 cents per share.
But hey, it seems everyone's numbers are down, and for Nvidia, analysts were anticipating worse numbers. While Nvidia's revenue of $664.2 million is a far cry from the $1.15 billion it posted last year, Wall Street had Nvidia pegged at $534.4 million, undershooting by $130 million.
To help cope with the recession, Nvidia has begun cutting back on its inventory, a method which seems to be working so far. Inventory was scaled back from 144 to 64 days sequentially, CNet reports, and revenue grew 38 percent sequentially from last quarter.
"We made good progress managing expenses and significantly reducing inventory," said Jen-Hsun Huang, CEO of Nvidia.
Image Credit: Nvidia
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Keith E. Whisman
May 08, 2009 at 11:14am
And yes all my future posts from now will lead somewhere to Star Trek.
Live Long and Prosper.
Keith E. Whisman
May 08, 2009 at 11:13am
These are hard times for the consumer and supplier. The Consumer cannot afford much and the supplier has to predict how much product to produce to meet demand. If he over produces he will lose alot of money like nvidia has because they didn't sell enough to cover manufacturing costs and if he under produces he loses as well because then demand pickups and prices go up and the potential consumer will leave you for your competitor.
Nvidia needs a crystal ball and needs to figure out exactly how much product to produce without making too much or too little but just enough and that is almost impossible.
I just hope that we don't see anymore companies go down the drain because I believe the economy is going to pickup now that Star Trek is in theaters and is Bad Ass as it is. Yes the latest Star Trek Movie is wonderful and J.J. Abrams should be the next Republican President of the United States. Heck he has my vote if he runs as a Democrat.
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