NVIDIA earnings down but better than anticipated

NVIDIA announed a second quarter revenue of $977.2 million and a net income of $96.4 million, versus a revenue of $1.04 billion and net income of $119.0 million in the year before period. The results are slightly better than anticipated, but the forecast of a $1.05 billion revenue in the current quarter is slightly below expectations.

The graphics giant is suffering from high competition in a declining PC market, and saw its Tegra revenue collapse to only $52.6 million, down 71 percent from the previous year. NVIDIA CEO Jen-Hsun Huang blamed one very important platform for the poor sales of the Tegra division. He didn't actually name the platform, but it's pretty clear that Huang is referring to the failed Windows RT platform. It appears NVIDIA made a wrong bet by dedicating its resources to Windows RT and Huang claims the market failure of this platform impacted NVIDIA's bottom line to the tune of up to $300 million.