SAN JOSE, Calif. -- Nvidia Corp. posted strong results for the quarter, but the graphics chip maker said that it is still suffering from capacity constraints from its foundry vendor.
As reported, Nvidia has been suffering due to a shortfall of 40-nm capacity from its foundry partner, Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC). TSMC's 40-nm yield problems surfaced last year, but the company claimed it largely resolved the problem.
Nvidia is still having issues with TSMC. In a conference call, Nvidia claimed it could have shipped more products in the quarter. Nvidia said it had a $100-to-$150 million sales shortfall in the period.
But it continues to see a shortfall in 40-nm capacity.
''40-nm is constrained around the world,'' according to representatives from Nvidia, during the call. ''Supply will be constrained for the first half of this year.''
Nvidia stopped short of slamming TSMC. TSMC has improved their yields and is doing a ''fabulous job,'' the company said.
Nvidia also reported revenue of $982.5 million for the fourth quarter of fiscal 2010 ended Jan. 31, up 9 percent from the previous quarter and more than double the $481.1 million reported in the same period a year earlier.
On a GAAP basis, the company recorded net income of $131.1 million, or $0.23 per diluted share, for the fourth quarter of fiscal 2010, compared with a GAAP net loss of $147.7 million, or $0.27 per share, in the same period a year earlier.
For the full fiscal year, revenue was $3.3 billion compared with $3.4 billion for the fiscal year ended Jan. 25, 2009, a decrease of 3 percent. GAAP net loss for the fiscal year ended Jan. 31, 2010 was $68.0 million, or $0.12 per share, compared with a net loss of $30.0 million, or $0.05 per share, for the fiscal year ended Jan. 25, 2009.
''Nvidia's business continued to accelerate in the fourth quarter, with strong demand in our PC and workstation markets," said Jen-Hsun Huang, president and chief executive, in a statement.
For the current quarter, revenue is expected to be flat from the fourth quarter.