Nvidia pulls off Project Blowout in Q2
Last month, Nvidia promised to bomb its second quarter. Today, the company delivered on those promises in smashing fashion.
The graphics chip maker's revenue dropped 5 per cent to $892.7m. In addition, the company posted a net loss of $120.9m, which compares to a profit of $172.7m in the same period last year.
Perhaps worst of all, Nvidia took a $196m charge "to cover anticipated customer warranty, repair, return, replacement and associated costs" tied to a defect in certain notebook products.
Big talking Nvidia CEO Jen-Hsun Huang copped to the obvious.
"Our Q2 financial performance was disappointing," he said. "The desktop PC market around the world weakened during the quarter. And our miscalculation of competitive price position further pressured our desktop GPU business."
To assuage investors, Nvidia announced that it would buy back an additional $1bn worth of stock, kicking its total repurchase program up to $2.7bn.
This move seemed enough to please investors in the short-term with shares popping up more than 10 per cent in after-hours trading. ®
I love stock markets...
NVIDIA lost $120.9m, will pay additional $196m, said that everything is much worse than expected and is buying extra $1bn worth of shares back... and share price is going up 10%!!!
I know, I know, share buyback and all... Still ridiculous, isn't it?
where did they find one billion dollars?
they call up the US congress, and UN on video phone, smile, put pinky digit to mouth and say, "i want one billion dollars, or your laptops shall explode... mwahahaha!"
Re: $1 BILLION
Presumably there's a seriously large and very important mattress somewhere in the nVidia empire. They certainly didn't fund this out of profits.
Said mattress is probably vollueing at their performance and globbering for them right now.