Nvidia Has First Loss in 6 Years, but Announces Buyback
Nvidia Corp., the second-largest maker of computer graphics chips, yesterday posted its first quarterly loss in six years. The shares jumped in late trading after the company said it boosted a share buyback program by $1-billion (U.S.). The second-quarter loss of $120.9-million, or 22 cents a share, compared with a profit of $172.7-million, or 29 cents, a year earlier, Santa Clara, Calif.-based Nvidia said yesterday. The stock was trading up nearly 11% when the market opened with this news.
“Our Q2 financial performance was disappointing. The desktop PC market around the world weakened during the quarter. And our miscalculation of competitive price position further pressured our desktop GPU business. We have a great product line-up and, having taken the necessary pricing actions, we are strongly positioned again. Our focus now is to drive cost improvements and to further enhance our competitiveness through the many exciting initiatives we have planned for the rest of the year,” said Jen-Hsun Huang, president and CEO of NVIDIA. “In contrast, the rest of our businesses did not exhibit the same dynamics as our desktop business. The notebook GPU, MCP, and Professional Solutions groups grew a combined 27 percent year-over year.”
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