NVIDIA reports lost profits, despite the early success of its Tegra line

NVIDIA has reported that both profits and revenues declined in the beginning of 2011, with revenue slipping 4% from over $1 billion last year, to $962 million this year. Still, second quarter is expected to bring a 4 to 6 percent increase of revenue from Q1.

Despite these not so spectacular figures, Jen-Hsun Huang, the company's president and CEO, remains optimistic and sees the mobile market as a wonderful opportunity for future business expansion: "With the Tegra super chip and the Icera wireless communication processor, we will offer our customers the two most important processors of the mobile computing revolution."

And we don't doubt their potential. While other companies are bringing their own dual-core processors to market, NVIDIA was the first. And they've gained valuable name recognition for their Tegra line in flagship devices like the Motorola XOOM, Motorola Atrix 4G and LG Optimus 2X devices.

So what does the Icera acquisition mean for their future success? Because Icera is a maker of baseband modem chips, NVIDIA will be able to offer a system-on-a-chip solution, which will prove very enticing to OEMs looking for a simple drop-in solution for their devices. But we know that while customers might develop loyalty towards an OEM or an OS, there's rarely any favoritism among components. So NVIDIA still has a long road ahead to defeat rivals like Qualcomm.

source: PCMag