Faulty GPUs take a bite out of Nvidia.
While the cutting latest Nvidia GPUs appear to be mostly free from manufacturing error, the faulty GPU continues to plague both the company and owners of the chip.
Disclosed in its quarterly filings, Nvidia revealed a charge that cost the company $119.1 million over the last four months to cover warranty and replacement costs related to the faulty chips due to weak packaging materials, according to Network World.
The $119.1 million charge itself brought company's bottom line down, as the company recorded a quarterly net loss of $105.3 million. This compares to a net loss of $120.9 million reported in the second quarter of 2008.
Nvidia CEO Jen-Hsun Huang called the charge just a small distraction, and that he sees signs of a recovery of the company's business.
"Nvidia's business is recovering. Product demand is improving, and our strategic investments are leading to new growth," Huang said.
A loss on the profit they are making?
I think it's hardly possible for a company to keep on existing if they would actually sell their products with loss.
At Prodigi
Have you ever head of AMD
They are the poster child of loosing money and yet still around.
Big companies like nVidia has cash reserves and that is why they can still be around despite recent losses.
Stop buying anything from any companies that does not respect our business. Does anyone know Apple's been extending the Ge-Fail 8600 GT related warranty to additional 2 years on top of original warranty for free?
I hate the Apple superdrive but can anyone tell me how many other companies that does that as well?
Well, I don't know if he wanted to hint something, but he did. Look like ATI is well on track to get back at the number one spot.
I think it could be the low blow from AMD for using Crossfire chips only for their AM3 platform.
Yup compared to ATI which uses a smaller die they get more bang per big old tube of silicone, i get why nvidia doesn't change sizes too often bigger company takes a bit longer but I'm sure they can see how AMD is doing selling fat dies compared to intel a company who only loss in like the past 20 years is caused by a giant EU fine.
I can't believe you just wrote over 3 lines of text with 1 comma and no periods. Oh wait, you did finish it all off nicely with a dot.
I don't see how that's complicated, their expenses were greater than the money they earned, so they have less money now than they did 4 months ago....a loss.
AMD/ATI has existed in that way only by much more staggering numbers for a long time now. They are still around in spite of their piss poor business model of under pricing their own wares for market penetration. I dont know they could survive a miss step like nVidia's here. Their margins are too thin.
I'll break it down for you.
For the quarter they had
$776.5 million in revenue (that is the same thing as gross sales)
$881.8 million in expenses (I don't know how to simplify the term expenses)
Therefore...
776.5 million revenue
- 881.8 million expenses
= they lost 105.3 million dollars.
It's a pretty simple concept actually.
By the way, I for the the financially illiterate this doesn't make sense, but profit and loss has absolutely nothing to do with cash, or cash flow. Nothing at all.
IzzyCraft, I hope you are kidding and not a raving technology idiot ... Silicon is grown as a large crystal and sliced into wafers for chip fabrication ... Not squeezed from a
Ignoring the spout of illiteracy exhibited at the very beginning, that is exactly how loss and profit can be discussed in monetary units, i.e. CASH.
Net Profit
actual revenue after expenses in a given period of time
Net Loss
The operating result when expenses exceed revenues for a given period.
Taken from a financial dictionary.
So in other words, they have EVERYTHING to do with cash and overall cash flow. Net loss = losing money, or negative cash flow. Everything.
So that's two counts of illiteracy in different categories from someone claiming to provide clarification on the financial meanings of profit and loss.