Feeds

Nvidia Q2 profits rocket

But 3dfx continues to dominate retail

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Nvidia yesterday reported record revenues and profits for its second quarter, despite statements from its arch-rival, 3dfx, that the latter is leading the way in retail sales.

Nvidia's Q2 2000 saw net income hit $22.5 million - almost four times the $6.7 million it reported for the same period last year. At 28 cents a share, the company's earnings were two cents above Wall Street expectations, according to First Call's average.

Operating profit for the three-month period totalled $29.5 million, up from $9.5 million for Q2 1999.

Revenue reached $170.4 million, up 118 per cent on last year's $78 million.

All of which serves to show that, at least for now, Nvidia's policy of sticking to chip development even though its rivals have expanded into board manufacturing is paying off. Without having to worry about the end user product side of the 3D business, Nvidia has been able to concentrate on building faster chips, a programme that has seen it supersede first the TNT2 and then that chip's successor, the GeForce 256, in around a year.

Nvidia has gone two product generations in the same time it's taken 3dfx, for instance, to move up one. It has also been able to expand its market coverage, adding the GeForce 2 MX to help it tackle the mobile arena. Nvidia's latest chip, the GeForce 2 Ultra may be little more than a fast memory-supporting, higher clocked GeForce 2 GTS, but it should be enough to win the company more business in the games enthusiast space.

That said, 3dfx remains a brand to be reckoned with, and yesterday said it continued to dominate the retail market with its Voodoo line. According to US retail market watcher PC Data, 3dfx's Voodoo 5 5500 AGP card was the number one selling during its first month on sale, outselling the number two board by a factor of two, and the combined sales of the number two and number three boards by 25 per cent.

Of course, board number two and board number three are both GeForce 2 GTS-based, so Nvidia isn't exactly being squeezed out of the retail market. And while 3dfx, now that it's producing its own boards, has to keep an eye on the retail market, Nvidia can focus on the more lucrative OEM space, something it's been doing with much success, if it's design wins and Q2 results are anything to go by. ®

Related Stories

Nvidia unveils GeForce 2 Ultra
Nvidia GeForce 2 MX targets mobile market
ATI Q3 loss wider than expected
3dfx 'frustrated' by revenue shortfall

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.