SEC probes accounts at US chipmaker

SEC probes accounts at US chipmaker

The US Securities and Exchange Commission has begun a federal investigation into the accounting procedures of computer graphics chipmaker Nvidia.

The chipmaker said the SEC informed the company in January that it had begun an enquiry into its accounting practices, after reviewing company email messages which related to an earlier investigation into alleged insider trading by some non-executive employees.

Nvidia said it has also launched an internal inquiry into the recording of certain reserves and expenses related to the fourth quarter of fiscal 2000 and the first three quarters of fiscal 2001.

On a conference call with analysts, Nvidia chief executive Jen-Hsun Huang said the company was co-operating fully with the SEC inquiry.

Huang said the SEC is investigating whether $3.6m in product costs booked in the second and third quarters of fiscal 2001 should have been recorded in the first quarter.

The accounting worries overshadowed a strong quarter as Nvidia reported a 134% increase in net income for the fourth quarter from a year ago, while revenue more than doubled.

Nvidia said it earned $73m, or 41 cents a share, for the quarter. Last year, net income came to $31.1m, or 19 cents a share.

Revenue was $499.9m, up 129% from last year’s $218.2m.

Last year the SEC investigated Nvidia employees for allegedly trading on advance information that the company had won a contract in March 2000 to provide chips for Microsoft’s Xbox.

Whitepaper

The Future of Finance is in the CFO's Hands

Business The Future of Finance is in the CFO's Hands

2m
Save a Week a Month Consolidating Accounts

Accounting Software Save a Week a Month Consolidating Accounts

3m
Mitigating Risk Through Internal Control

Legal Mitigating Risk Through Internal Control

4m
Could tax season have run more efficiently?

Corporate Tax Could tax season have run more efficiently?

4m

Related Articles

Williams Lea appoints new global chief financial officer

Career Williams Lea appoints new global chief financial officer

2d Dave Beach
Deloitte appoints first female Managing Partner for Consulting

Big Four Deloitte appoints first female Managing Partner for Consulting

2d Dave Beach
Mazars acquires healthcare company Hall Liddy

Company News Mazars acquires healthcare company Hall Liddy

5d Dave Beach
HP and Autonomy - The use of evidence in and from foreign proceedings

Company News HP and Autonomy - The use of evidence in and from foreign proceedings

6d Charles Pugh and Edmond Fung
HW Fisher announce Compliance on Demand acquisition while Price Bailey partner with Ashtons Legal

Company News HW Fisher announce Compliance on Demand acquisition while Price Bailey partner with Ashtons Legal

1w Tom Lemmon
Employee engagement demand prompts Deloitte acquisition

Company News Employee engagement demand prompts Deloitte acquisition

2w Dave Beach
Top 20 shake-up as Saffery Champness hires S&W partner

Career Top 20 shake-up as Saffery Champness hires S&W partner

2w Dave Beach
Poor leadership hits small business while confidence sinks to two year low

Business Poor leadership hits small business while confidence sinks to two year low

3w Tom Lemmon