"Nvidia posted a $141 million loss in its second fiscal quarter, which ended August 1. Losses have widened since the same period last year, when the outfit was $105 million in the red.
Nvidia was forced to cough up $193 million for faulty mobile chips shipped in 2008. Had it not, it would have been profitable, but just barely. The company was also forced to take a significant inventory writedown due to poor demand.
On the upside, revenues jumped 4.5 percent to $811 million, although revenues still failed to meet analysts’ expectations. Nvidia is somewhat more optimistic about the upcoming third quarter and it expects revenues of between $836 and $852 million.
Although Nvidia would probably attribute its inventory issues to poor demand and the increasing popularity of integrated graphics, the obsolescence of much of Nvidia’s discrete GPU lineup is obviously becoming a major issue. Things should improve in the current quarter thanks to the recently introduced GTX 460 and soon-to-launch GF106 and GF 108 parts."
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