NVDA--
Yahoo - Nvidia Says Revenue to Miss Expectations
1. Nvidia said it expected to report revenue of $410 million to $430 million for the quarter ended July 28, below the average Wall Street expectation of $567.9 million as tracked by research firm Thomson First Call.
2. Nvidia in late May had said it expected its second-quarter revenue to be up 1 percent to 3 percent from the $582.9 million it reported in the first fiscal quarter. The new revenue forecast was as much as 32 percent lower than the prior view.
3. Jeremy Lopez, an analyst at Chicago-based research firm Morningstar Inc. "I think investors obviously, by the stock price, had anticipated this ahead of time."
4. Nvidia said it would have to take a "significant" write-off of inventory in the quarter, and that including that charge, it expected results to be "at or above break-even."
5. Chief Executive Jen-Hsun Huang said part of the write-off would come from chips manufactured for Microsoft Corp.'s (Nasdaq:MSFT - News) Xbox video game console that are now obsolete because Microsoft has changed the security codes in the chip.
6. TSMC (Taiwan:2330.TW - News), the world's largest contract chipmaker which derives the largest chunk of its revenue from Nvidia, last week issued a cautious forecast and cut capital spending plans because of what it said was weakness in a number of sectors, including PCs and game consoles.
7. The company is closely allied with PC chip maker Advanced Micro Devices Inc. (NYSE:AMD - News), which reported a large loss for the quarter that ended in June. AMD also lowered revenue guidance twice for that quarter.
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