Nvidia Takes $119.1 M Charge for Faulty GPUs

[Guest]

"So in other words, they have EVERYTHING to do with cash and overall cash flow. Net loss = losing money, or negative cash flow. Everything.
So that's two counts of illiteracy in different categories from someone claiming to provide clarification on the financial meanings of profit and loss."

I'm sorry waffle but this is accounting 101. Cash has nothing to do with profit. Nothing at all. Cash is a balance sheet item. Profit/loss is an income statement item.

You can be highly profitable and make billions of dollars a year while at the same time burn through all of your cash, be insolvent and be forced into bankruptcy. At the same time you can lose money every single year but if your cash flow is sufficient you can continue to operate forever at a loss.

Profit/loss includes a lot of non cash items. Cash and profit/loss are entirely unrelated. Again this is accounting 101. This really should be taught in grade school, financial illiteracy is one of the main reason for the current recession.

By the way I a have a Bachelors degree in Accounting though I have never worked a day of my life in Accounting and never will, entirely too boring.

 

[brisingamen]

the real reason for thier faulty chips is probably a problem of both the foundry and thier design,
because of this chip problem, and the fact if i dont upgrade for 2 years, i felt ati's philosophy was much better in terms of future proofing, ive gamed on a gtx 295 and im just as happy with my fancy shadows on my 4870 1gb,

im concerned about nvidia feeling they will return to profitability and i think nvidia will continue losing money for the next year atleast and here is why.
reason #1
i think physx is a gimmick for now, and by the time it actually gets used in games to a noticeable or meaningful way is a few years away at best.
reason #2
i hope nvidia smartens up, they absolutly shit the bed on thier ion product, i mean whats the point in making a just as useless integrated intel graphics chip? really? just when i thought they had a chance at dealing a blow to the console market, they go ahead and do this, why would someone buy that over a mac mini, or a normal mini pc? thier is no reason other than it has a fancy green logo for the sake of it. ugh.
reason #3
also indications are thier next dx 11 part is eerily similar to that of larrabee, the truth of this matter remains to be seen, but damn. doesnt sound good. and unless something drastic happends i doubt they will catch up to ati's heavy R&D into dx11 over the past two years, so maybe in a year at best if they charge hard can they really make up ground there.
reason #4
by the sounds of it nvidia is betting the farm on tegra, and phone 3d games i just dont see being that big, especially if its weaker than ion, keeping my fingers crossed cause i want a tegra phone with windows mobile like no one else, but i sure hope its worth a damn. but i just dont see it having the power to put out to a tv and game with any conviction, i sure hope it does. but if ion is any indication, i wouldnt bet on it. 3d apps of a 4 inch touchscreen is one thing, but what market are they realy going for? if physx on such a small scale can be performed by other graphics chips not made by nvidia?
5th
they are investing heavily into x86 processors trying to make thier own, i applaud them for this, but seemingly another distraction for them taking away from quality in what they are actually known for. and it will be forseeable years before they will actually be able to make money on this project. i would like nothing more than to see them succeed in this giving intel and amd some real competition, also maybe by the time they come out with this, that japanese cpu firm might have a good competitor oh i forget whats the name, fujitsu or something or other,


i just dont see how they hope to return to profitability with what ive seen so far,
the solutions are going to need to be either a change in philosophy, or
put some real polish on physx and helping game makers learn how to use it quick.
physx is neat at best, and the novelty wears off in literally 2 minites, cryostasis looked kinda cheezy, i mean the water and all that needs alot of work before its gonna matter,
it was reacting around the environment, but as it was splashing off the guys head you could see what porportionally would have been a 5 inch gap all around, like he had a halo or something.
next ion is an epic fail before it even gets started unless nvidia puts a real cpu in that thing with some possible tweaking of that chip still, they need to squeeze every little bit out of that thing, and really turns it into a viable gaming platform to compete as a console doing games right at 720i resolution.
the next stop for the ion chip is gaming in netbooks, that resolution shouldnt be a problem for a ten inch screen or what was the point, really.

although i would consider buying a gtx 275 with a warranty just because im a total pixle whore i wont be buying nvidia stock anytime soon. thoughts?

 

[salem80]

RecallNVIDIA.org

 

[salem80]

the problem is nVIDIA had sell alot of G84 and G86 Chip "that has been failed"
so the storm will continued
.

 

[vladtepes]

Nvidia @laptop=FAILURE

 

[jrsalda]

Cool, I'd like to get back the $400 I spent to fix my vostro 1700 with faulty 8600GT(personal purchase). We haven't bought anything from nvidia since then. and as an IT director in my multinational company I have the power to decide what to buy and what not to buy. With a $45000 budget expense for PC equipment including parts in a yearly basis, they won't see a penny from us as long as I remain in this position.

 

[cynewulf]

[citation][nom]IzzyCraft[/nom]I don't think with comma's and periods so why should i write any different periods are auto done i don't actually hit them usually.[/citation]
You're missing the point entirely. Punctuation is used to make your writing easier for others to understand. Of course, if you don't actually want people to read your comments...

 

[bloodroses75]

Yup, this is exactly what I've been saying about Nvidia for a while now. I really don't expect to see this company around for another 5 years. They have been making way too many business mistakes and have caused alot of problems with alot of the major players out there (Microsoft, Sony, Intel). Once Intel releases Larabee, expect Nvidia to fold shortly after that as they will not have have a platform to build from. To survive, they would need to pick up a cpu manufacturer like VIA and try to get them on a competitive level with AMD and Intel. And even so, they're still completely dead in the console market as the players there are Microsoft (which they pissed off), Sony (which they pissed off) and Nintendo (who uses strictly ATI).

This faulty chip thing will be the nail in the coffin for them (for me at least). My $2500 Toshiba X205-sli3 laptop is completely worthless thanks to it and there is no desire by them to fix their mistake. And I will warn everyone else the same thing unless they want to throw money away. PR like that will kill a company eventually.

 

[chrisv815]

Crap, who wrote this?

"While the cutting latest Nvidia GPUs appear to be mostly free from manufacturing error"

1. Someone who never finished high school.
2. They outsourced writing these articles to China.

You decide.
What happened to America?

 

[Kill@dor]

Someone getting fired...

I hope they take lesson from this and provide people with quality products. I haven't had any issues luckily; and i did get a GTX275 which is performing very well or above expectations.