NVIDIA makes $61.7M in Q3

Despite the slowing economy, declining graphics share, and myriad of price cuts that occurred during Q3, NVIDIA managed to make money during the quarter, earning $61.7 million. Now granted that's a reduction in profit of 74% compared to year-ago levels of $235.7 million, but not nearly as bad as the markets expected given NVIDIA's current predicament. Q3 revenue fell to $897.7 million, this is a reduction of 20% compared to year-ago levels of $1.12 billion.

So how did NVIDIA manage to make money last quarter? The company credits solid margins thanks to their 55-nm transition as well as job cuts: "We made good progress on multiple fronts during the quarter," said Jen-Hsun Huang, president and CEO of NVIDIA. "Improving gross margin while managing operating expenses enabled us to significantly improve our operating fundamentals. We transitioned our performance segment GPUs to 55 nanometers and are now poised to recapture lost share. We entered the fastest growing segment of the PC market with our first notebook chipset for Intel processors, and delivered on several exciting new growth initiatives -- 3-way SLI for the Intel Core i7 processor platform, Quadro CX for Adobe CS4 creative professionals and the Tesla supercomputing processor."

At this time NVIDIA shares are up 10%.