Nvidia has significantly cut estimates for its fiscal Q2 2009 and announced a $150 million to $200 million charge for the quarter ending July 27 on a product defect issue.

The GPU market leader now expects total revenue to be between $875 million and $950 million, down approximately 20% from Nvidia’s fiscal Q1 revenue of $1.15 billion and far off from the 5% sequential drop off expected by most financial analysts.

Nvidia said the shortfall is due to end-market weakness around the world, the delayed ramp of a next-generation MCP, and price adjustments of its GPU products to respond to competitive products.

Separately, Nvidia said it will take a one-time charge from $150 million to $200 million against cost of revenue for its fiscal Q2 to cover anticipated warranty, repair, return, replacement, and other costs and expenses, arising from a weak die/packaging material set in certain versions of its previous generation GPU and MCP products used in notebook systems.

The Santa Clara-based company admitted that certain notebook configurations with GPUs and MCPs manufactured with a certain die/packaging material set are failing in the field at higher than normal rates.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved