nVidia admits GeForce FX 5800 'not successful'

Dom · May 9, 2003, 11:59 PM

Nvidia last night announced disappointing results for the first quarter of its current fiscal year, 2004.

The chip maker admitted its NV30 chip - aka the GeForce FX 5800 - was "not a successful product", and confirmed that it would launch its replacement, the NV35, next week. The suggests Nvidia will indeed announce NV35 at the E3 show, to be held in Los Angeles on 13-16 May, as forcast.

Speaking during a post-announcement conference call, Nvidia CEO Jen-Hsun Huang said the NV35 will replace the NV30. The new chip is believed to be called the GeForce FX 5900. Pictures of the new board can be seen here.

Sales for the period were $405 million, down 30.5 per cent on Q1 2003, when Nvidia recorded sales of $582.9 million. Sales fell sequentially too, down 13.6 per cent on the previous quarter's $469 million worth of sales.

The most recent quarter's figure was below Wall Street's expectation of $410 million, according to FirstCall's poll.

Net income totalled $19.7 million (12 cents a share), down 61.3 per cent on the previous quarter's $50.9 million income (30 cents a share) and a whopping 76.3 per cent on the same period last year's figure of $83.2 million (47 cents a share).

Revenue from Nvidia's deal with Microsoft fell $43 million quarter over quarter. The company expects to get some of that back in the current quarter, but it's hard to see it given Xbox's recent price cuts.

Huang said Nvidia would begin producing a new GeForce FX chip, this time with IBM, which the company selected as a second manufacturing partner in March. Huang said the company has not yet decided how it intends to split production between IBM and its original foundry partner, TSMC, in the long run. TSMC will be producing NV35, he said.

Talk of the new GeForce FX, plus NV35, drove Nvidia's shares up 11 per cent in after-hours trading from $16.06 to $17.80. But that's still a very long way from 2002's high of around $70, when the company seemed unaffected by the downturn the rest of the semiconductor industry was experiencing.

Looking ahead, CFO Marv Burkett said the company expects revenue to rise by between 12 and 18 per cent in the second quarter. However, he admitted that gross margins in the second quarter may drop 1-2 per cent. Nvidia is putting in place cost-cutting measures, he said.

--------------------
Source: TheRegister

amuro · May 11, 2003, 12:34 AM

About time they did.

digitalwanderer · May 11, 2003, 01:23 AM

They're calling the fastest card available a failure?!?! What, are they smoking something hallucinagenic?!?!

JavaFox · May 11, 2003, 03:41 AM

Subtle sarcasm?

digitalwanderer · May 11, 2003, 04:07 AM

Nah, if'n I wanted to be nasty I'd probably drop a quick quote from a post on nVmax that went something like:

Quote:

NV30 was launched with the PR image of "Are You Ready?". Soon after it's launch ATi responded with "Are You Ready For More?".

Apparently Chief Executive Jen-Hsun Huang was furious with the NV30 and prevented the expected Feburary roll-out from going ahead until the engineers built up a model that could tackle the ATi offerings. We were told that some engineers were fighting for their jobs (and some were fired?) and had an absolute grilling from Jen-Hsun, whom knows all too well that NV30 could well have started the process of NVIDIA annihilation.

But of course, you know I'd never do that.

digitalwanderer · May 11, 2003, 04:16 AM

For all OSes and available from nVidia, according to the link posted above....I just liked the trash-talk better.

Mac Daddy · May 11, 2003, 08:40 PM

Quote:

Originally posted by digitalwanderer
They're calling the fastest card available a failure?!?! What, are they smoking something hallucinagenic?!?!

Hey DIG I think this is the result of too much CRACK Cocaine

Or some members compensating for something

Hey man you wanted more Trash Talk, LOL

May 9, 2003, 11:59 PM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	nVidia admits GeForce FX 5800 'not successful' Nvidia last night announced disappointing results for the first quarter of its current fiscal year, 2004. The chip maker admitted its NV30 chip - aka the GeForce FX 5800 - was "not a successful product", and confirmed that it would launch its replacement, the NV35, next week. The suggests Nvidia will indeed announce NV35 at the E3 show, to be held in Los Angeles on 13-16 May, as forcast. Speaking during a post-announcement conference call, Nvidia CEO Jen-Hsun Huang said the NV35 will replace the NV30. The new chip is believed to be called the GeForce FX 5900. Pictures of the new board can be seen here. Sales for the period were $405 million, down 30.5 per cent on Q1 2003, when Nvidia recorded sales of $582.9 million. Sales fell sequentially too, down 13.6 per cent on the previous quarter's $469 million worth of sales. The most recent quarter's figure was below Wall Street's expectation of $410 million, according to FirstCall's poll. Net income totalled $19.7 million (12 cents a share), down 61.3 per cent on the previous quarter's $50.9 million income (30 cents a share) and a whopping 76.3 per cent on the same period last year's figure of $83.2 million (47 cents a share). Revenue from Nvidia's deal with Microsoft fell $43 million quarter over quarter. The company expects to get some of that back in the current quarter, but it's hard to see it given Xbox's recent price cuts. Huang said Nvidia would begin producing a new GeForce FX chip, this time with IBM, which the company selected as a second manufacturing partner in March. Huang said the company has not yet decided how it intends to split production between IBM and its original foundry partner, TSMC, in the long run. TSMC will be producing NV35, he said. Talk of the new GeForce FX, plus NV35, drove Nvidia's shares up 11 per cent in after-hours trading from $16.06 to $17.80. But that's still a very long way from 2002's high of around $70, when the company seemed unaffected by the downturn the rest of the semiconductor industry was experiencing. Looking ahead, CFO Marv Burkett said the company expects revenue to rise by between 12 and 18 per cent in the second quarter. However, he admitted that gross margins in the second quarter may drop 1-2 per cent. Nvidia is putting in place cost-cutting measures, he said. -------------------- Source: TheRegister

May 11, 2003, 01:23 AM	#3
digitalwanderer Colour Commentator Join Date: May 2002 Location: Highland, IN USA Posts: 5,619 Rep Power: 0	WHAT?!?!? They're calling the fastest card available a failure?!?! What, are they smoking something hallucinagenic?!?! __________________ WTF is up with the sigs?

May 11, 2003, 04:16 AM	#6
digitalwanderer Colour Commentator Join Date: May 2002 Location: Highland, IN USA Posts: 5,619 Rep Power: 0	Oh yeah, it also tells when Det 5's are being released. For all OSes and available from nVidia, according to the link posted above....I just liked the trash-talk better. __________________ WTF is up with the sigs?

May 11, 2003, 12:34 AM	#2
amuro DriverHeaven Lover Join Date: Jan 2003 Posts: 147 Rep Power: 0	About time they did.

May 11, 2003, 03:41 AM	#4
JavaFox E Pluribus Unum Join Date: May 2002 Posts: 3,203 Rep Power: 0	Subtle sarcasm?