NVIDIA’s results for Q3 of the 2009 fiscal year were released this week and they show a significant reduction in revenue when compared to the same time last year. In fact, the drop is about 20% and can most likely be attributed to an $8.3 million charge that resulted from laying off 360 employees.
Even though gross margin improved, there were still things that dented profits. Besides the severance packages, another major cost came when NVIDIA had to replace faulty GPUs in several notebook models. But by moving their graphics cards to 55 nm models, they are hopeful of a big turn around.
Q3 ended on October 26 and it can be reported that NVIDIA’s profits fell by 74% down to $61.7 million. This is down from the $235.7 million from the same time last year. The company believes the 9400M will help pull them out of this rut.