Gigabyte may post a loss this quarter

Posted on Thursday, Nov 22 2018 @ 11:43 CET by Thomas De Maesschalck
Gigabyte logo
Market watchers predict Gigabyte may swing to a loss in Q4 2018. DigiTimes writes the motherboard and video card maker is suffering from massive inventory losses. Gigabyte saw a large inventory build-up in Q2 2018 after the bust of the cryptocurrency bubble, and started recognizing losses for the inventory in Q3 2018. The site also notes Gigabyte is expected to see higher expenses due to a bug with NVIDIA's new top-end GPU, which likely refers to the reported issues with the GeForce RTX 2080 Ti.
Because of the quickly waning cryptocurrency mining sector, Gigabyte witnessed a large inventory build-up of graphics cards in the second quarter and started recognizing losses for the inventory in the third quarter, the sources said.

Although Gigabyte's operating income for the third quarter was negative, the company still managed to report net profits for the quarter, thanks to non-operating incomes, the sources noted.
Next year is expected to be another though year for Gigabyte. ASUS is becoming increasingly dominant in the motherboard market, and Gigabyte can expect fierce competition in the profitable gaming and server markets.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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