Nvidia lowers Q2 revenue expectations

The company cites a bigger-than-expected shift to lower-priced GPUs and integrated graphics

Graphics company Nvidia on Wednesday lowered its revenue expectations for the second quarter of its fiscal 2011, partly because of a shift toward lower-priced graphics processing units and integrated graphics.

The company is projecting revenue between US$800 million and $820 million for the quarter ending on Aug. 1. Nvidia on May 13 said it expected second-quarter revenue to be in the range of $950 million to $970 million.

Higher memory costs associated with consumer graphics processing units drove demand for the cheaper GPUs, Nvidia said. "The increased solution cost of discrete GPUs led to a greater-than-expected shift to lower-priced GPUs and PCs with integrated graphics," Nvidia said in a statement. Discrete GPUs are separate graphics cards that can be installed on a computer's motherboard.

Economic weakness in Europe and China also contributed to the lowered revenue expectations.

The company will report its second-quarter earnings on Aug. 12.

Earlier this week the U.S. International Trade Commission (ITC) ruled against Nvidia for allegedly infringing on three Rambus patents. However, Nvidia and financial analysts said the ruling wouldn't impact business.

"We do not believe the ruling will have a material adverse impact on Nvidia's results," said Doug Freedman, a financial analyst with Gleacher and Company, in a research note sent on Wednesday. Freedman said the company's original revenue expectations were at risk not because of the court ruling, but because of the impact of product and market conditions.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesfinancial resultsnvidia

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?