nVidia revenue, profits fall, announces share repurchase
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nVidia reported earnings for Q2 FY09 and its revenues fell from $935.3 million to $892.7 million in the same quarter a year ago: a decrease of 5%. However, revenues for the six months ended July 27, 2008 increased to $2.05 billion compared to $1.78 billion for the six months ended July 29, 2007, an increase of 15 percent.
GAAP net loss was $120.9 million, or a loss of $0.22 per share. Non-GAAP net income for the second quarter of fiscal 2009 was $74.5 million, or $0.13 per diluted share.
“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.”
The company also announced an increase of $1 billion to its stock repurchase program under which it may now purchase up to $2.7 billion of its common stock. Through July 27, 2008, NVIDIA has repurchased 68.0 million shares under the stock repurchase program for a total cost of $1.16 billion.
Shares of nVidia have been almost up 16% since the earnings announcement.
