Nvidia said Thursday that its second quarter loss had narrowed from a year ago and offered some hope that things may be turning around. For the quarter, the company reported a net loss of US$105.3 million, or 19 cents per share, an improvement over the year ago loss of US$120.9 million, or 22 cents per share.
But the results include a net charge of US$119.1 million for a previously disclosed issue related to "a weak die/packaging set used in previous-generation chips". Excluding that charge and a stock compensation-related charge, the company had second quarter net income of US$37.7 million, or 7 cents per share. Sales for the quarter were US$776.5 million, down 13 percent from a year earlier but a 17 percent improvement from the previous quarter. Wall Street analysts had been expecting a loss of 2 cents per share on revenue of US$710.2 million. In a statement, company president and CEO Jen-Hsun Huang said:
NVIDIA’s business is recovering. Product demand is improving, and our strategic investments are leading to new growth. Our two newest businesses began to ship meaningful amounts of product this past quarter and show significant promise. Tesla, the industry’s first GPU for general-purpose high performance computing, achieved its highest-ever quarterly revenue. And Tegra, our ultra low-power computer-on-a-chip, is making exciting progress in the market for mobile and embedded devices. Our new businesses are positioned to benefit from the rise of mobile and cloud computing.
For the current quarter, the company said it expects revenue to be up 5-7 percent.
Shares of Nvidia were down more than 2 percent in regular trading, closing at US$13.12. In after-hours, however, shares were on the rise, up more than 5 percent.
The article was first published as a blog post on ZDNet.
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