Nvidia Posts Decline In Revenue, Profits

For the quarter, Nvidia took in $469 million in revenue, down from $503.7 million last year. That resulted in a net profit of $50.9 million (30 cents per share), compared to $76.0 million (43 cents per share) last year. What's disheartening is that the fall in profit takes into account a $40.4 million fee Microsoft paid Nvidia to settle a dispute over the pricing of the graphics chips Nvidia supplies to the Xbox. Of that $40.4 million in revenue, Nvidia said $4.8 million came from sales in Q4 and $35.6 million came from unit sales in prior quarters. Nvidia shares rose after the earnings report, climbing to $10.32 in after-hours trade from a close of $9.87 on the Nasdaq.