Nvidia Takes $119.1 M Charge for Faulty GPUs

Thank god this is finally fading. I ended up throwing my hp laptop in the trash because of it. HP's warranty policy is to replace the motherboard with the same faulty part.

I can't wait to see Nvidia and ATI's DX11 cards. GTX200 and HD4000 series are getting boring.

So how did they define a 'loss'?
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.

lol @ the pic of Nvidia GeFail!!!

So brand loyalty should be constricted to how they pack, and shipping company loyalties.

At Prodigi
Have you ever head of AMD
They are the poster child of loosing money and yet still around.

my dell XPS M1330 has one of those fault ships, dell told me i "over used" my laptop and that the specific videocard cant handle "intense" gaming. HA! what a joke... CS 1.6 is hardly intense.

@ProDigit80

Big companies like nVidia has cash reserves and that is why they can still be around despite recent losses.

@ thepetey

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?

That's because the Huge die nVIDIA used

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 think with comma's and periods so why should i write any different periods are auto done i don't actually hit them usually.

loss: revenue - expenses < 0

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.

Anyone ever heard of Nortel Networks? Their shares went from 100$/share down to 0.08$, but since they are the only ones that provide certain kind of telecom materials, they're still in "business"...

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.

Wow, It's amazing how you guys are so ignorant on what loss means.

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 it is not uncommon at all for companies to operate at a loss. The US car manufacturers have been losers for decades. They take on debt to keep operations going, or they raise more cash through secondary offerings etc or if they have enough cash on hand to hold them over until they turn a profit again they can just use the cash in the bank.

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.

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.

Can't believe I missed this one:

That is not what they mean by product packaging. They mean the physical packaging of the electronic microcircuit, meaning the entirety of the actual chip (pins/contacts and all) that gets soldered to a circuit board, not how the chips are shipped from the factory to the customers.

@waffle it was more meant as mild sarcasm if anything as not all gpus broke but the weak construction of them did make the more prone.

@flatsix T_T have you ever seen the process up close it tends to reminds me of a tube although probably more accurate a rod or cylinder even if i know it's not, it's called word play

I like the GeFail pic

I repair PC's & have seen quite a few NVidia cards go bad but most of these are a year or more in age. They also seem more static sensitive so be sure to use a grounding strap when installing them or at least ground yourself while installing them.

"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."

I'm sorry waffle but this is accounting 101. Cash has nothing to do with profit. Nothing at all. Cash is a balance sheet item. Profit/loss is an income statement item.

You can be highly profitable and make billions of dollars a year while at the same time burn through all of your cash, be insolvent and be forced into bankruptcy. At the same time you can lose money every single year but if your cash flow is sufficient you can continue to operate forever at a loss.

Profit/loss includes a lot of non cash items. Cash and profit/loss are entirely unrelated. Again this is accounting 101. This really should be taught in grade school, financial illiteracy is one of the main reason for the current recession.

By the way I a have a Bachelors degree in Accounting though I have never worked a day of my life in Accounting and never will, entirely too boring.

the real reason for thier faulty chips is probably a problem of both the foundry and thier design,
because of this chip problem, and the fact if i dont upgrade for 2 years, i felt ati's philosophy was much better in terms of future proofing, ive gamed on a gtx 295 and im just as happy with my fancy shadows on my 4870 1gb,

im concerned about nvidia feeling they will return to profitability and i think nvidia will continue losing money for the next year atleast and here is why.
reason #1
i think physx is a gimmick for now, and by the time it actually gets used in games to a noticeable or meaningful way is a few years away at best.
reason #2
i hope nvidia smartens up, they absolutly shit the bed on thier ion product, i mean whats the point in making a just as useless integrated intel graphics chip? really? just when i thought they had a chance at dealing a blow to the console market, they go ahead and do this, why would someone buy that over a mac mini, or a normal mini pc? thier is no reason other than it has a fancy green logo for the sake of it. ugh.
reason #3
also indications are thier next dx 11 part is eerily similar to that of larrabee, the truth of this matter remains to be seen, but damn. doesnt sound good. and unless something drastic happends i doubt they will catch up to ati's heavy R&D into dx11 over the past two years, so maybe in a year at best if they charge hard can they really make up ground there.
reason #4
by the sounds of it nvidia is betting the farm on tegra, and phone 3d games i just dont see being that big, especially if its weaker than ion, keeping my fingers crossed cause i want a tegra phone with windows mobile like no one else, but i sure hope its worth a damn. but i just dont see it having the power to put out to a tv and game with any conviction, i sure hope it does. but if ion is any indication, i wouldnt bet on it. 3d apps of a 4 inch touchscreen is one thing, but what market are they realy going for? if physx on such a small scale can be performed by other graphics chips not made by nvidia?
5th
they are investing heavily into x86 processors trying to make thier own, i applaud them for this, but seemingly another distraction for them taking away from quality in what they are actually known for. and it will be forseeable years before they will actually be able to make money on this project. i would like nothing more than to see them succeed in this giving intel and amd some real competition, also maybe by the time they come out with this, that japanese cpu firm might have a good competitor oh i forget whats the name, fujitsu or something or other,


i just dont see how they hope to return to profitability with what ive seen so far,
the solutions are going to need to be either a change in philosophy, or
put some real polish on physx and helping game makers learn how to use it quick.
physx is neat at best, and the novelty wears off in literally 2 minites, cryostasis looked kinda cheezy, i mean the water and all that needs alot of work before its gonna matter,
it was reacting around the environment, but as it was splashing off the guys head you could see what porportionally would have been a 5 inch gap all around, like he had a halo or something.
next ion is an epic fail before it even gets started unless nvidia puts a real cpu in that thing with some possible tweaking of that chip still, they need to squeeze every little bit out of that thing, and really turns it into a viable gaming platform to compete as a console doing games right at 720i resolution.
the next stop for the ion chip is gaming in netbooks, that resolution shouldnt be a problem for a ten inch screen or what was the point, really.

although i would consider buying a gtx 275 with a warranty just because im a total pixle whore i wont be buying nvidia stock anytime soon. thoughts?

RecallNVIDIA.org

the problem is nVIDIA had sell alot of G84 and G86 Chip "that has been failed"
so the storm will continued
.

Nvidia @laptop=FAILURE

Cool, I'd like to get back the $400 I spent to fix my vostro 1700 with faulty 8600GT(personal purchase). We haven't bought anything from nvidia since then. and as an IT director in my multinational company I have the power to decide what to buy and what not to buy. With a $45000 budget expense for PC equipment including parts in a yearly basis, they won't see a penny from us as long as I remain in this position.

You're missing the point entirely. Punctuation is used to make your writing easier for others to understand. Of course, if you don't actually want people to read your comments...