Feeds

Nvidia's rotten Q2

Gets forecasts wrong

  • alert
  • submit to reddit

Nvidia had a rotten quarter in Q2, with sales plummeting up to $172.9m from Q1.

Sales for Q2 ending 28 June will come in somewhere between $410 and $430m, Nvidia says. At best this is a 26 per cent slump on Q1, and wildly at odds with the company's own estimates announced in May of a 1-3 per cent advance in revenue, topping out at $600m.

This to us suggests some loss in market share - by Nvidia's own reckoning PC sales were down 13 per cent on Q1, and the graphics chip designer blamed lower sales by key customers such as Apple. Of course, retail collapse, tougher competition from ATI, falling market share for AMD (with the consequent knock-on for Nvidia chipsets) could also be thrown into the pot.

And let's not forget Xbox. Nvidia also miscalculated demand here and will book a hefty writedown on inventory. This means that Q2 will be at best just above breakeven.

Nvidia's terrible quarter explains the Publish=2002/07/30&pages=04&seq=26">Digitimes story on Monday, which reported demands from Nvidia for Taiwanese mobo makers to stock up with $50m before the end of Q2.

This would have taken months for the mobo makers to work through, the Taiwanese newswire says. This does not suggest financial shenanigans, just sales reps keen to hit their targets. ®

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.