By David Becker, 8 August 2003 08:10
NEWS Nvidia, the leading maker of graphics chips for PCs and other devices, reported modest sales gains and a sharp jump in quarterly profits on Thursday, which it attributed to its deal to supply chips for Microsoft's Xbox games console. The company reported net profit of $24.2m for its second quarter, which ended 27 July. That compares with income of $5.3m for the same period a year ago. Revenue for the quarter was $459.8m, compared with $427.3m a year ago. In a conference call with financial analysts following the announcement of the results, Nvidia CEO Jen-Hsun Huang attributed much of the growth to increased shipments of Xbox parts to Microsoft. Nvidia won a contract several years ago to supply the graphics processor - the most expensive part of a game machine - for the Xbox. The contract has been troublesome for Nvidia, which went through lengthy arbitration with Microsoft to settle pricing issues. Huang deflected speculation about whether Nvidia will work with Microsoft on the next version of the console, saying the company is focused now on meeting a jump in demand in anticipation of holiday sales. "Our most important job is to help the ramp into the holiday season, so we're building as fast as we can," he said. "We have to stay really focused on that." David Becker writes for News.com
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