|From PC World: Nvidia took a one-time warranty charge of US$196 million against its second-quarter revenue on Tuesday, saying that amount should cover the cost of replacing bad Nvidia graphics chips used in a range of laptop models from different manufacturers. Chairman and CEO Jen-Hsun Huang stopped short of ruling out additional charges related to this problem in the future, but said Nvidia was not obligated to replace the bad graphics chips.
"We're not expecting more write downs in the future," Huang said during a conference call with financial analysts. "We think we have a pretty good handle on the situation. We thought we were relatively conservative, but we'll see how it goes."
"Obviously, this isn't something that we absolutely need to do but we stepped up to do it because we think it's the right thing to do," he said.
Nvidia reported a second-quarter loss of $121 million on revenue of $893 million, partly due to the one-time warranty charge.
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