Nvidia Says Revenue to Miss Expectations


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Nvidia Says Revenue to Miss Expectations

7/30/02 2:03 PM

Source: Reuters

http://news.cnet.com/investor/news/newsite...20207182-0.html

SANTA CLARA, Calif. (Reuters) - Graphics chip maker Nvidia Corp. on Tuesday warned that revenue for its just-completed second quarter would be significantly below expectations because of broad weakness in demand for PCs.

Santa Clara, California-based Nvidia said it expects to report revenue of $410 million to $430 million for the quarter ended July 28, below the Wall Street expectation of $567.9 million as tracked by research firm Thomson First Call.

Nvidia in late May said it expected its second-quarter revenue to be up 1 percent to 3 percent from the $582.9 million it reported in the first fiscal quarter.

Nvidia said it would have to take a "significant" write-off of inventory in the quarter, and that including the write-off, it expected results to be at or above break even.

TSMC, the world's largest contract chipmaker which derives the largest chunk of its revenue from Nvidia, last week issued a cautious forecast and cut capital spending plans because of what it said was weakness in a number of sectors, including PCs and game consoles.

Nvidia is considered the industry leader in high-end, add-in graphics cards for computers. Its chip powers the graphics for Microsoft Corp.'s Xbox video game console.

The company is closely allied with PC chip maker Advanced Micro Devices Inc., which reported a large loss for the quarter that ended in June. AMD also lowered revenue guidance twice for that quarter.

Nvidia shares were halted in after-hours trade just before the announcement. They closed regular trading up 7.3 percent at $16.22 on Nasdaq.

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