Graphics vendor $141m in the red

Nvidia cites soft consumer demand behind Q2 loss

Graphics chipmaker Nvidia has reported a loss of $141m in the second quarter of the year, up from a $104m loss in the same period in 2009.

Nvidia said that the demand for consumer GPUs had weakened due to surging memory prices and weakening economic conditions in China and Europe. The result was a larger trend towards budget PC systems with lower end graphics cards or integrated graphics solutions.

"Rapidly changing market conditions made for a challenging quarter," said Nvidia boss Jen-Hsun Huang while the company’s senior vice president of investor relations, Michael Hara, told analysts: "Weak consumer market and the weak euro shifted demand away from the premium experienced PC segment that GeForce serves."

In the same quarter the International Trade Commission ruled that Nvidia was infringing Rambus patents with the result that it would order an exclusion banning the importation of Nvidia products. Nvidia said it plans to appeal the decision. Rambus has been active for over ten years suing memory makers that refused to licence the firm’s technology. 

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