Nvidia has seen its luck change as its $137.6 million profits of last quarter dipped down to $141 million loss this quarter.
The company's revenue has also fallen from $1,001.8 million in Q1 to $811.2 million in Q2 2010, even though it is an improvement over last year's Q2 revenue of $776.5 million.
Nvidia attributed the sharp turnaround to considerable decline in PC sales coinciding with a shift in consumer preferences towards low end and integrated graphics chips in addition to having to pay a legal charge of $193.9 million as a result of a class action lawsuit brought about in 2008 by disgruntled shareholders who accused the company of knowingly providing defective parts to market.
"Rapidly changing market conditions made for a challenging quarter," said Jen-Hsun Huang, NVIDIA CEO. "We delivered excellent results in Quadro professional graphics, Tesla GPU computing, and our Tegra system-on-a-chip business. But our GeForce consumer business fell significantly short of expectations amid weak PC demand in Europe and China."
The company noted that if the lawsuit expenses and tax impacts were to be nullified, it would have posted an adjusted profit of $20.1 million.