Feeds

Nvidia Q2 profits rocket

But 3dfx continues to dominate retail

  • alert
  • submit to reddit

Next gen security for virtualised datacentres

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
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?