NVIDIA record big losses Page: 1
NVIDIA have been plagued with several problems over the past year, and this may have taken their toll on the company's revenue, as well as the current financial climate. They have announced a 60% drop of revenue in Q4 of 2008, which equates to $147.7 million net loss. For the whole year they have recorded a total loss of $30 million. Jen-Hsun Huang, president and CEO of NVIDIA had the following to say on the news:
The environment is clearly difficult and uncertain. Our first priority is to set an operating expense level that balances cash conservation while allowing us to continue to invest in initiatives that are of great importance to the market and in which we believe we have industry leadership. We have initiatives in all areas to reduce operating expenses. Although fiscal 2009 was extremely difficult, it was one of our best years of innovation. We made many important advances in graphics processing with PhysX and 3D Vision, GPU computing with CUDA and Tesla, and mobile computing with ION and Tegra. I am pleased with the excellent achievements we made in each of these important areas.
There were problems in early July of 2008, when NVIDIA announced a higher than normal failure rate of certain laptop GPU's, which cost the company a one off payment of $200 million. There were then problems being flagged by HP, with desktop NVIDIA GPU's, which will have further had an effect on NVIDIA's profits. Let's hope NVIDIA get a better year this year.
You can view the statement on the official NVIDIA website. You can discuss this article in our forums.