Nvidia's Loss Tied to Pricing, Chip Errors

Nvidia reported a quarterly net loss and a five percent drop in revenue versus a year ago, as the company's chief executive admitted that the company had made errors pricing its desktop products. For the second quarter of fiscal 2009, AMD's revenue decreased to $892.7 million compared to $935.3 million for the second quarter of fiscal 2008. AMD also reported a net loss of $120.9 million, versus a profit of $172.7 million a year ago.

Two major problems surfaced. The first, a $196 million charge to cover warranty repair and other costs associated with a thermal issue in its older GPUs, one that the company may have solved through its licensing of Transmeta's low-power LongRun technology last week.

The second, however, was more insidious:

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