Nvidia Loses $120 Million in Past Three Months


It's been a rough ride for Nvidia as of late, who not only has had to contend with a suddenly competitive ATI , but also finds itself battling a bad batch of mobile GPUs (which might turn out to be a bigger problem than initially stated). The struggles have turned financial with the graphics chip maker reporting a net loss of $120.9 million in the second quarter, or 22 cents a share. This is in stark contrast to one year ago when the company posted a profit of $172.7 million, or 29 cents a share.

The quarter's results include a $196 million charge Nvidia took to cover warranty, repairs, and other costs associated with an "abnormal failure rate" among its mobile GPUs. Nvidia executives are hopeful for a somewhat better third quarter, saying they expect revenue to grow "slightly."

"We didn't lose any share, the market just got soft on us," said chief executive Jen-Hsun Huang. And while Huang admitted that the second quarter results are "disappointing," the company still saw its shares rise by 10 percent after announcing a $1 billion boost to its stock buyback program.

Image Credit: Nvidia

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