Things will only get worse
Nvidia has posted its results for the second quarter of this year.
The company has amassed a loss of (USD) $121 million, with a five per cent decrease in revenues year-on-year for the given quarter.
However, for the six months ending July 27, 2008, revenue actually increased to $2.05 billion compared to $1.78 billion for the six months that ended July 29, 2007 - an increase of 15 perc ent.
As we are all fully-aware, during this second quarter, Nvidia recorded a $196 million charge against cost of revenue to cover costs arising from a weak die/packaging material set in certain versions of the previous generation MCP and GPU products used in notebook systems.
Nvidia blamed this figure for the loss, and also what the firm characterised as a 'weak market for desktop PCs'.
The press release also stated that Nvidia bosses miscalculated 'competitive price positions' further pressurising desktop GPU business - i.e. Nvidia launched average expensive product, whilst ATI/AMD hit back with high-performing, affordable parts.
Nvidia is still receiving a battering from the recent spout of problems concerning both its laptop and desktop GPUs , and we have previously commented that issues resulting in the $196 million charge may not have been fully disclosed, prompting speculation that further charges may be incurred within the future.
Nvidia is also facing a further three quarters without any considerably new product, whilst ATI/AMD's new lines will be available on the market.