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Most novice programmers seldom see the necessity of drawing a flowchart - Rodney Zaks - Programming the Z80
Nvidia 10-K filing goes under the microscope
NVIDIA JUST PUT out it's annual 10-K filing with the SEC, effectively a state of the company address. In it, there are a few gems.
You can read it here, but be warned, it is as dry as toast, but still somehow makes you feel slimy when reading it. They never miss an opportunity to pat themselves on the back.
The interesting bits start out when they mention that they lost a point in marketshare, going from 64 per cent to 63per cent. This may not sound like much, but it very carefully omits two key points. The first is the dates, they claim that it covers FY/09, which for them goes from Feb 1/08 to Jan 31/09, but the numbers they use to make the claim are based on Dec 07 to Dec 08 Mercury reports.
Now this may seem like an innocent enough thing, eminent plausible deniablity there, but it is carefully crafted to avoid bad news. Remember this? It took place in January 09, their marketshare plunged in that one month. Later on, Nvidia goes on to say "Revenue in the second half of fiscal year 2009 declined by 33 per cent when compared to revenue from the first half of fiscal year 2009," almost all of that happened in January 09. With the carefully picked dates, Nvidia avoids having to say this for another year.
One other note here, the word margin is only used once in the 10-K, and that is only in passing. This and the marketshare are tied together though. Nvidia seems hell bent on keeping market share at any cost, and it does cost. They are selling their highest volume enthusiast part at a loss now, and have spent the last three to four quarters gutting margins to keep OEM sales up. We have heard numerous times that they are selling at a loss to support market share, but have been unable to get hard numbers from OEMs. There has to be a reason the company is willing to flush money to prop up market share numbers, but we can't explain it.
In any case, that strategy failed on the notebook side, with their market share of the standalone GPU business dropping from 75 per cent to 63 per cent. If you count Apple in that, the rest of the market must have tanked badly for them. The explanation is really dodgy, trying to cling to the fact that notebook GPU unit sales were up, but that is because of the shift away from desktops to notebooks overall. It is a second rate amateur attempt at deflection.
From there they go on to 'professional' graphics, and proudly proclaim that they are leading the market. True. They proudly omit the fact that they are bleeding marketshare here to ATI, and this is hurting their margins bad. If you follow Nvidia, ask them for specific marketshare numbers in this segment, it is extremely germane to their profits. Then go look at what Dell and HP sell in that space. Keep an eye out here, this is the engine that drives Nvidia's ability to play pricing games elsewhere, and it is falling apart.
The next interesting part is under 'Product Defect'. No, they don't come clean. No, they don't admit who they shafted, it is just more of the same, "Not our fault," waffling. The stunning bit? "While we have not been able to determine a root cause for these failures, testing suggests a weak material set of die/package combination, system thermal management designs, and customer use patterns are contributing factors." Yes, they still claim to not know why it is happening. Are they a semiconductor company or a late night waffle house?
But it gets funnier, compare that to the 8-K they filed in July which said, "While we have not been able to determine a root cause for these failures, testing suggests a weak material set of die/package combination, system thermal management designs, and customer use patterns are contributing factors."
Word for word. Looks like they haven't bothered to look since July, that or they are totally incompetent. They are still blaming partners, what a lark. Hint guys: I figured it out, read this, there is still time to update the 10-K and link it. Heck, we won't even charge you for using it.
But the humour doesn't stop there. From the 8-K: "We have developed and have made available for download a software driver to cause the system fan to begin operation at the powering up of the system and reduce the thermal stress on these chips. " From the 10-K: "We have worked with our customers to develop and have made available for download a software driver to cause the system fan to begin operation at the powering up of the system and reduce the thermal stress on these chips."
We thought it was a BIOS update that runs the fans permanently to annoy victims of the defective chips, but since they are working with customers, who am we to quibble.
Looks like zero has been done here since July either. Then again, maybe just opening the door to some really harsh discovery from the impending lawsuits, won't the 'customers' be pleased there.
It is astounding that Nvidia still won't come clean on this, and the firm denies they understand the problem. Then again, they claim to have fixed it, but don't understand it, and won't tell the victims either. How can they say this with a straight face, much less sleep at night?
Last up is an interesting note on market share. Nvidia ships product when it is sent to AIBs. ATI does it differently, so when a chip goes out the door and sits in a warehouse, it is sold from Nvidia, but not from ATI. A warehouse full of chips is market share for one side, not for the other.
This is explained in the section called Product Revenue, and has huge implications for the market share numbers mentioned above. When AIBs have huge inventory that they will have to liquidate later in the quarter, this may hammer Nvidia's marketshare numbers, keep an eye out. There is at least one more 'January surprise' out there for them, but they won't talk about it if you ask.
Overall, the 10-K puts out a self-congratulatory note that simply isn't backed up by facts. Nothing went wrong that was their fault, and minefields are carefully danced around. Basically it is more of the same. µ
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Another biased piece of B.S....So AMD/ATI 10K should be just hilarious if you thought this one was funny...I used to read some of your pieces but they are really just the same old crap with no substance....unless it's someone other than your-self I won't bother anymore
The information provided is accurate. Short of being a bit long-winded, I don't really see a valid complaint here?
Seems like your just on the Charlie bandwagon.
Did you even read the entire thing or were the words too big?
Your right on the mark Charlie, no Nvidia shares going in my portfolio, unless I want to use them for a loss on my gains. Then again their are alot of arrogant CEO's out there to choose from.
What is the huge hard on for Charlie here? so far he has exposed Nvidia and i am glad for it. I am not a fanboi in any sense, so when it came time for my upgrade path i was damn glad to know what was going on with Nvidia. Maybe this year will be different and they will truly bounce back. Just look at AMD (i know they are still hurting for cash but their Phenom II is a great bang for the buck product).
Let's face it, he has dug a lot of information up and out of Nvidia and it only adds up to one thing, they screwed up big time and are doing everything they can to ignore it. this hurts everyone; consumers get a bad product, shareholders get stuck with inflated returns before the inevitable bubble burst, and the company workers who get laid off. This kinda reminds me of the Iraqi minister stating that the Americans were no where near Baghdad.
Way to go Charlie, keep them on their toes. I have absolutely no doubt that if it were AMD/Intel/ATI/etc you would be just as tenacious (Microsoft is a different issue).
Another great article Charlie.
But unfortunately, N-shitia's Evil doesn't stop there.Im convinced that Nvidia is powering and sponsoring a lot of those cheap hardware sites that recently have been increased in number.......those sites are N-vidia's last defense.N-vdia, through those
sites, readjust the performance of it's gpus by fabricated / fake benchmarks.
I believe that you, Charlie, with some investigation, can expose those sites and completely uncloth N-vidia...
Best wishes from Konstantine.
Ah, I see they're still blaming that little problem they had with mobile graphics cards on stuff like "die/packaging" and "customer use patterns". People, you are using your notebooks wrong, it's your fault!!!11!1
It'd be nice if they grew a pair and came clean.
As a customer writing this comment on a laptop with an 8600M GPU, wondering when it will fail, I whole heartedly agree with Charlies comments. Customer usage patterns!? If by usage patterns they mean turning the damn thing on, then maybe they have a point.
Looks like Charlie is trying to fill you anti-nvidia quota for the month...
I am also a "customer" with a laptop whose replacement GPU is showing signs of failure, just can't go through the pain of fighting with customer support at Dell (again) to change the mainboard.
Will I buy another laptop from them with all-nVidia like the XPS Studio 13 they keep calling us about to upgrade to? Will I hell! Which is a pity as it looks to be a nice laptop otherwise.
Still waiting for Dell to "admit" there's anything wrong (anybody else read their blog about this issue?) or do something about except replacing mainboards...
They could have stopped all this at any time by just admitting the fault, but no, they keep trying to...
The first expose was a well written article.
However Charlie got carried away and lost his marbles a tad. Now I find all INQ articles suspicious.
Supposedly a handful of people lost faith in the inquirer, because of Charlie...err, how? he delivered a friggin gem on the exposing the Nvidia filler fiasco! hate him for doing a public service? lose faith because journalism exposed the truth??
How best to convince people you are honest? check every Charlie written article and say he went over the edge or that he is lying or that the Inq is not trustworthy...blah blah blah BS!
Are these Nvidia PR bunnies or disgruntled Nvidia share holders? They could be both! *ouch*
Yet again, through all the slur and the attempts to besmirch Charlie's good name, the truth prevails.
All I can say is that companies occasionally stumble. When money is involved people lose their halo...but when the bluff is called you should at least come clean.
some people finger AMD/ATI and say, "they are not better", to some degree that is true...but does anyone recall the admission of the TLB errata?
They bought the bullet. Sometimes when things go bad, you just have to brave the storm.
Nvidia has been running away from that storm, which sounds smart doesnt it?
It sure is! But guess what buddy? it's at our expense!
If you disregard Charlie's obvious hatred of all things Nvidia, you'll come to the very simple conclusion that he's telling the truth about this company.
Look at their revenues over the past few years - running up to 4/5 $billion. That was based on them fleecing people with incredibly overpriced products. Were they the best? Sure they were - but the price did not reflect the performance.
Nvidia's $4bn revenue days are GONE. Gone forever, because ATI/AMD have changed the market for GPU's.
Nvidia will need to adapt to being a $2-3bn company, but that's the thing - they are not willing to accept it.
Do they try to release better products to justify their higher prices? No - they go about bribing/coercing reviewers and rehashing ancient technology with 'brand new' names instead.
Nvidia fanbois need to wake the **** up to the reality of this desperate company.
Its not about bring a fanboy or not. Charlie is just trolling.
This whole article is based on the assumption that he "figured out" the problem.
Do you really think all the boards parters, OEMs, Dell, Apple, etc, can't figure out the problem, but Charlie can?
Hah!
Logic says, either there is nothing to figure out, or it has already been resolved/settled between OEMs and NV.
This pseudo journalism/conspiracy bullshit should be ridiculed into oblivion.
Charile needs a psychologist.
"Do you really think all the boards parters, OEMs, Dell, Apple, etc, can't figure out the problem, but Charlie can?"
What makes you think that that pack of money grubbers have any interest in taking back millions of dollars worth of defective parts and replacing them for free? Given that graphics cards are updated every years or so, wouldn't it be easier to just stonewall the poor suckers who bought them then offer to sell them something "better" anyway?
Got to the 6th line and could see that it was going to be another NV bashing. Whats the point in writing if all u say is the same thing. Hope i can finish reading your next article but i hold out as much hope as you do for NV cleaning there act up.
ROFLMAO. This article rocks! Good one Charlie...
"Do you really think all the boards parters, OEMs, Dell, Apple, etc, can't figure out the problem, but Charlie can?"
So innocent...lol
The funniest thing is, as Charlie points out, that they claimed to have fixed the problem (with the launch of 9400M and 9600M), and they still claim that they don't know what the problem is. ROFLzzz.
While everyone expects Intel to have a torrid time with graphics around its first product launch, as a company it will learn quickly and come out swinging for round two. Apart from the fact that Intel can buy as many games as it likes, we're most concerned that Intel's drive will require some really smart people - if it is to succeed. With nVidia's share price floundering sub-$10, any engineer that has options ar $20-$50 will be looking for a way out and that's something that Intel might offer. Combine that with a huge slump in Quadro workstation revenue and 2011 is not looking good :-(
Nothing new in the report either in facts or presentation. The report is typical "Corp-Speak" and they all do it. It's their ball game and they are free to talk about their balls and bat any way they want.
I fail to see why this is considered worthy IT news. It has nothing new and nothing even minimally exciting. So I guess the only way to get attention is by bashing. And on that front you dad a job Charles.
Now go forth and see if you can find something to write about that's a little less of "bashing as an excuse for good reporting".
The point isn't whether Charlie is right or wrong or whether his rants are based on fact or fiction. It's about his pathetic obsession with stalking a single company. This article isn't reporting anything we can't see for ourselves, the point of it is to convey Charlie's hysterical and emotional hatred for the boys in green. Why doesn't he report on AMD's much worse financial situation and go skimming through their 10-K's?
do the inq still employ this buffoon? My 9 year old daughter could write more informed and unbiased pieces than this moron. Very sad that he is still allowed to pedal such crap.
All you Nvidia champions are unbelievably thick!
The company you love screwed you, its customers, and you feel that you must defend it?
It's like battered wives or the Stockholm Syndrome...
---
As for Charlie, for your next piece, please envision the internal drama at Nvidia!
Are the engineers busy piling colourful blocks and unable to address the materials issue?
Is Nvidia's executive level hiding behind barricades with fingers in ears while NV engineers bash on the door with facts?
What is going on behind those doors?....
The hyperbole goes a bit far at times, Charles, but the fanboys are very much wrong. Keep at it!
Another biased and pathetic attack by the C-man. Notice how I said attack instead of any kind of informative in-depth reporting. Has he said anything positive about Nvidia? The fact he never has anything bad to say about Intel, has to really make you wonder what his true motives are? He’s just a glorified basher who gets a regular check. I wonder if he’s related in some way to Dan Rather?
If Charlie is a fanatical Nvidia hater that exposes truths about their sick dealings that’s good in my opinion as it helps readers make better, informed decisions before departing with their cash.
Come on where are you fanatical Intel / AMD haters to inform us about their ill dealings.
What is it Charlie, are they charging so high to make evil profits or are they selling at a lost? It takes more than careful pricing not to upset you.
Only Charlie can rant and take offence by a dull 10-K filing containing no news.
Now charlie has fallen so low he's actually posting comments to his own articles to defend his silly behaviour. The new Charlie defence posts are so obviously written by the author.
Makes me laugh, these Nvidia fan boys take it dry and come back for seconds LOL.
I've read alot of Charlie bashing going on, but no dissecting his article.Piss off if you can't pick his news piece apart and fill in with your facts. Well come on I'm waiting.
Instead of admitting you got F*cked in the rear by Nvidia, you fanbois go Charlie bashing.
You NVIDIA suckers can go suck Charlie's d... as soon as you pull Jensen's d... out of your mouth :-)
Has anyone noticed over half of nvidia's partners not selling nvidia products anymore?
or is that corporate fanboi'ism?
could be a reason eh? I know it's not graphics card performance or technology as nvidia makes a fast product.
Being stuck with 200 dollar cards is an issue i think! Notice how there arent all of those lifetime warranty nvidia offers flooding the retail boxes like 2 years ago.
Charlie,
I followed your interesting one-sided street about nVidia for quite some time now. But, there is only one thing that bugs me... where are your analysis of INTC and AMD 10-K/8-K?
All three major players have their SNAFUs, how about reporting about more than one? About AMD's accounts in Cayman Islands? Way how Intel switches unsold CPUs to gray market, deliberately nuking their own channels?
Charlie, we met and we spoke on several occasions, and you seemed quite intelligent. You chose to judge just one side and I can only thanks heavens that side isn't my company (we work with all three vendors mentioned above).
OEMs cannot talk about it.
Why do you think Dell, for example, simply refuse to confirm or deny whether current laptops or replacement boards are still affected?
If the parts were good, why would they not say it? Try calling and asking your sales manager or on their official blog, see how it goes...
Why would new BIOSes versions change thermal data repeatedly if the new chips were OK?
Would you like your failed product replaced with a refurbised one they refuse to say it is fixed or not?
Performance without reliabity does not mean much to me. If repeated failures and replacements are OK with others, more power to you then!
Last time I checked they'd lost 6billion or so in like a year and a half. Either they're selling stuff at a loss or they have complete IDIOTS running their company into the ground (ok, well it's both things...LOL). I love AMD, but they need to fire managers and marketers and hire more engineers. While they're at it let ONLY engineers make decisions (the dark mayor was a start...but it's going to take a while to turn this ship around). The best quarter I can remember for ATI's graphics division was 60mil. Nvidia made 200mil+ for quite a while now up until this last quarter or two and only because of charges did the show a loss. Not because of selling at a loss, but charges. There is a difference.
I'm not quite sure why you got your panties in a bunch over the renaming crap either. If the 8800 performs between a 240 and a 260 why not rename it 250 so everyone knows whats up? If a customer is standing in front of a 240/260/280 and an 8800 would most know the difference? Doubtful. Hell, a lot might think the 8800 better than all...LOL. I'd have a problem with it if it didn't perform as named. But it does, so who cares? I wish both companies would just keep one set of numbers and set them accordingly. Much less confusing for uneducated buyers. Me, I know the difference, but most don't.
If in doubt which of the cards performs better - couldn't one just look at their prices ? It's called market, the part that performs better is usually priced higher ;)
Aside from the fact that everyone knows Charlie is biased toward nVidia I find this article a good one.
It presents the facts and if you compensate for Charlie's comments I still find it well written and giving us facts.
BTw currently I own a nvidia gpu.
I feel like taking the 8400 GS out of my computer, throwing it out. And buying a nice new and shiny ATi graphics card.
Why? Because Nvidia makes shit drivers. Please look at the Vista and 7 drivers, they wipe off 256 MB of the memory from my graphics card. Yet XP reads 512 MB.
lolz, fail.
Also, an ATi X300 (128 MB), actually got Aero in Windows 7.
lololololololol
Nvidia can't even get their Control Panel to work on overclocking in Vista/7.
When I try to overclock, it crashes the graphics card for that session.
"It's called market, the part that performs better is usually priced higher ;) "
Is this why Vista Ultimate costs so much?
As for the desperate Nvidia apologists, it would be interesting to see how many of these fanboi posts come from Nvidia IP addresses (or their OEM partners). This comment has been written on a laptop with a 9600M GT built in (an HP HDX18T), and I'm glad Charlie has done the research on this company - this GPU is the reason I bought a 3 year extended warranty on the laptop! At least *I'm* covered when it goes tits up.
I enjoy reading these comments more than I do reading the article itself. I don't know which is the saddest?
I bought a laptop with the Gefore 8800M SLI setup just barely before the announcement of Nvidia's giant screw up. I'm not happy with how its been handled, pretending as if it doesn't exist.
For the first time since switching to Nvidia after the fall of 3DFX, I'm going to try ATi.
Oh and Charlie FTW.
As others have said, why not go after AMD's tattered 10-K? Why not expose intel's corporate shenanigans? Or is this an ongoing revenge drama the result of being snubbed for breaking a contractual NDA?