IT SEEMS THAT Nvidia is slowly sliding into a sea of doom and does not seem to have packed its swimsuit.
The Green Goblin posted a worse-than-expected loss of $141 million for its second fiscal quarter. Of course it says that it is not its fault, it blames weakening conditions in the overall PC market, although we have to point out that few other companies have noticed.
Revenue for the three months ended August 1 was $811.2 million, up 4.5 per cent from $776.5 million a year earlier. But the Green Goblin had to earn a lot more cash than that to make up for expenses. This quarterly loss follows a smaller loss of $105.3 million a year earlier.
The poor showing comes after a couple of better quarters, when strong sales of PCs related to the launch of Windows 7 helped Nvidia.
Nvidia CEO Jen-Hsun Huang claimed that a weakening recovery threatens healthy growth in the PC market.
Of course the fact Nvidia was late launching its Fermi-based graphics chips last year has nothing to do with it. The delay has had a knock on effect throughout Nvidia's finances.
The company blamed lower consumer demand, increased memory costs, and economic weakness in Europe and China.
Of course the fact that it had to write a cheque for $193.9 million related to a pending settlement of a class-action suit over faulty graphics chips due to weak packaging materials didn't help either.
That Nvidia's chief rival AMD had great results also suggests that things aren't going well for the Green Goblin.
AMD also seems to be capturing market share, which Nvidia can't like. AMD now has 51 per cent of the stand-alone graphics chip market, compared to 49 per cent for Nvidia. A year ago, Nvidia had 59 percent and AMD had 41 percent. µ
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