Friday, July 04, 2008

Nvidia Chip Reliability Issues - "Suffers Chip Glitch"

Just to add to the potential contributing concerns for those with performance issues and Revit 2009 products.

This report at Tech Trader Daily is a bit scary for the users of their products, here's the text from their article.

July 2, 2008, 8:38 pm

Nvidia Cuts Q2 Guidance; Suffers Chip Glitch
Posted by Eric Savitz

Nvidia (NVDA) shares have been clobbered in late trading after the company this afternoon warned that revenue and gross margin for its fiscal second quarter ending July 27 would be lower than previously forecast. The company now sees revenue for the quarter of $875 million to $950 million; the company had previously forecast that revenue would be down 5% sequentially from the April quarter, or about $1.09 billion. The company previously said it expected gross margin to be up about 100 basis points from the April quarter. Nvidia said the shortfall is due to end-market weakness around the world, the delayed ramp of a next generation media and communications processor, and price adjustments to its graphics processors to respond to competitive pressures.

The company also said it will take a one-time charge of $150 million to $200 million to cover “anticipated warranty, repair, return, replacement and other costs and expenses,” from a weak die/packaging material in certain versions of its previous generation GPU and MCP products used in notebook systems. “Certain notebook configurations with GPUs and MCPs manufactured with a certain die/packaging material set are failing in the field at higher than normal rates.” the company said in a statement. “To date, abnormal failure rates with systems other than certain notebook systems have not been seen.” NVIDIA said it has begun talks with its supply chain regarding this issue and will also seek to access insurance coverage for this issue.

In after hours trading, NVDA is down $3.95, or 21.9%, to $14.08.

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