Nvidia sees profits, revenue decline
Graphics chipmaker Nvidia saw its profits drop nearly 80 percent in the second quarter due to turbulence in the desktop market and increased competition.
The Santa Clara, Calif.-based company on Thursday reported earnings of $5.1 million, or 3 cents a share, compared with $24.2 million, or 14 cents a share, a year ago. Revenue was $456.1 million, slightly less than the $459.8 million the company reported during the same period last year.
Analysts expected the company to report revenue of $501 million and earnings of 15 cents a share.
Nvidia shares fell more than 23 percent in after-hours trading, changing hands recently at $11.20. In regular trading ahead of the news, shares closed at $14.56, off 41 cents.
''Q2 was challenging and disappointing, as the desktop (graphics processing unit) segment declined significantly as a result of several unusual market events,'' Jen-Hsun Huang, CEO of Nvidia, said in a statement.
In a conference call, Huang attributed the decline to market share losses and competition with archrival ATI Technologies.
Analysts said the company lost market share to both ATI and Intel. In a research note released Thursday, Jon Peddie Research stated that Intel's share in the graphics chip market rose from 33 percent in the first quarter to 37.7 percent, while Nvidia's share declined from 27.2 percent to 23.2 percent. ATI lost market share--but only marginally, sinking from 24 percent to 23.2 percent.
One of the slowest-growing sectors in graphics was the market for stand-alone graphics chips, the market Nvidia specializes in.
In the early part of the decade, Nvidia surpassed ATI to become the largest graphics provider in the world. In late 2002 and early 2003, however, Nvidia had to postpone a new line of chips at a time when ATI's designs were catching up in terms of performance. The two companies and Intel, which makes graphics chips that are integrated into chipsets, are the three dominant players in the market.
Az a 80%-os bevetel csokkenes eleg durva es elgondolkodtatto, ugytunik hogy stagnal a piac, mikozben az INTEL az integralt chipjeivel, szep kis piaci novekedest tudhatott magaenak az elmult negyedevben.
Valoszinu ezert akarnak atterni a hosszab ciklusra, es esetleg masfel evig nem jon az r5x0 es az nv50.
Az is erdekes, hogy az ATI vs NV egalra all 23.2%-os piaci reszesedessel.
Aki esetleg tud valami jobb cimet a topicnak otletet varom (jobb nem jutott eszembe), aztan majd egy moderator atirja :)
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