Nvidia's chief executive officer is emphatic that his company has a strategy for building processors beyond its mainstay graphics chips.
During an interview with CNET, Jen-Hsun Huang addressed an issue with the company's chips and spoke about ongoing Intel litigation.
On Thursday, Nvidia reported a second-quarter net loss of $141 million, or 25 cents per share, worse than the net loss of $105.3 million, or 19 cents a share, a year earlier. The graphics processing unit (GPU) supplier--whose chips are found in PCs from Hewlett-Packard, Dell, Acer, Sony, and Toshiba--cited muted demand for consumer graphics chips and economic weakness in Europe and China, which drove consumers to lower-priced products. Nvidia products typically are targeted at the upper end of the market.
In the earnings announcement, the company addressed a longstanding issue--and ongoing financial burden--centered on a defect in some of its earlier GPUs and chipsets. The problem was first cited by Nvidia in July 2008 when it announced a charge ranging from $150 million to $200 million to cover costs to repair and replace GPUs and chipsets due to "weak die/packaging material" in older laptop products. "Die/packaging" essentially describes the chip. Nvidia also announced additional charges after July 2008.
On Thursday, Nvidia said it recorded an "additional net charge" of $193.9 million related to the same problem. "The charge includes additional remediation costs as well as the estimated costs of a pending settlement of a class action lawsuit related to this matter," the company said in a statement. Combined with the $282 million of net charges announced previously, the total net charge related to the issue comes to $475.9 million, the company said.
I asked Huang Thursday if he thought the problem was now largely… Read more