NVIDIA Reports Shortfall In Q2 Revenue Relative To Prior Outlook; Gaming Revenue Down 33%

(RTTNews) - NVIDIA (NVDA) reported preliminary second quarter revenue of approximately $6.70 billion, up 3% from the prior year, primarily reflecting weaker than forecasted Gaming revenue. Gaming revenue was $2.04 billion, down 33% from the prior year. Data Center revenue was $3.81 billion, up 61% from the prior year. Preliminary gross margin - non-GAAP - was 46.1%, plus or minus 50 bps, revised from prior guidance of 67.1%, plus or minus 50 bps.

The company said the shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of Gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds.

The company's second quarter results are expected to include approximately $1.32 billion of charges, primarily for inventory and related reserves, based on revised expectations of future demand.

"We believe our long-term gross margin profile is intact. We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth," said Colette Kress, CFO of NVIDIA.

Shares of NVIDIA were down 7% in pre-market trade on Monday.

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