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The Santa Clara, California-based company reported a GAAP net loss for the first quarter of $201.3 million, or $0.37 per share, compared to GAAP net income of $176.8 million or $0.30 per share for the year-ago quarter.
The latest quarter results include a non-recurring $140.2 million charge in connection with a previously announced cash tender offer to purchase employee stock options.
Excluding recurring stock-based compensation charges, the non-recurring charge related to the tender offer and the associated tax impact of these items, non-GAAP net loss for the first quarter was $46.7 million or $0.09 per share, compared to non-GAAP net income of $211.8 million or $0.36 per share in the prior year quarter.
On average, 23 analysts polled by Thomson Reuters expected the company to report a loss of $0.11 per share for the first quarter.
Revenue for the first quarter fell 42% to $664.23 million from $1.15 billion in the same quarter last year. First quarter revenue grew 38% sequentially. Twenty-six analysts had a consensus revenue estimate of $514.71 million for the first quarter.
GAAP Gross margin for the first quarter fell to 28.6% from 44.6% a year ago, while non-GAAP gross margin declined to 30.6% from 44.9% last year.
Inventory in the first quarter decreased from 144 to 64 days sequentially.
NVIDIA grew share, for the second consecutive quarter, in the total desktop standalone GPU segment from 63% in the fourth quarter to 69% in the first quarter, according to Mercury Research's first quarter PC Graphics report 2009.
"We made good progress managing expenses and significantly reducing inventory, while continuing to invest in our growth strategies," said Jen-Hsun Huang, president and CEO of NVIDIA. "The GPU is ever-more central to our computing experience. There is a rapidly growing number of applications that rely on the GPU, and the industry is gearing up to launch the next generation operating systems that adopt GPU computing."
Chipmakers are going through a tough time due to sharp drop in computer sales and technology spending in light of the global recession.
In March, Nvidia filed a countersuit in the Court of Chancery in the State of Delaware against Intel Corp. (INTC | Quote | Chart | News | PowerRating) for breach of contract in a chipset license agreement between the two companies. The company has also sought to terminate Intel's license to its patent portfolio.
Nvidia also appointed a new chief financial officer - David White - during the first quarter. White succeeded Marvin Burkett who retired in March.
Nvidia shares, which have traded in a range of $5.75 to $25.35 over the past year, closed Thursday's regular trading session at $10.73, down 83 cents or 7.18% and lost an additional 33 cents or 3.08% in after hours trading.
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