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Technology Stocks : NVIDIA Corporation (NVDA) -- Ignore unavailable to you. Want to Upgrade?

To: Artslaw who wrote (1137)	9/10/2002 6:21:03 PM
From: Brasco One	Respond to of 2646

Nvidia says ordered to supply Xbox chips Tuesday September 10, 5:55 pm ET LOS ANGELES, Sept 10 (Reuters) - An arbitration panel hearing a dispute between Nvidia Corp. (NasdaqNM:NVDA - News) and Microsoft Corp. (NasdaqNM:MSFT - News) over chips for the Xbox video game console has ordered Nvidia to continue supplying the chips, the graphics chip maker said in a filing on Tuesday. Nvidia under a March 2000 agreement supplies certain graphics and processing chips for Microsoft's game console. Microsoft in April of this year submitted for arbitration a dispute over the price it pays for those chips and the quantities in which they are produced. "The arbitration panel has issued an interim ruling that the company must supply Microsoft's reasonable requirements of chipsets, but no minimum or maximum amount has been set overall or for any particular period," Nvidia said in a quarterly report filed with the U.S. Securities and Exchange Commission. The Santa Clara, California-based company did not say when the ruling was issued. A company spokesman was not available for comment. Nvidia has been recording the difference between what Microsoft is paying and what the software giant claims it should be paying as deferred revenue. The company said the deferred amount was $46.2 million as of July 28, the end of its fiscal second quarter. Nvidia has cautioned that if it loses, it could be forced to produce the Xbox chips at a loss and might have to reduce production of other chips to satisfy Microsoft's demands. It said the panel has yet to issue any ruling on Microsoft's request for lower prices on the chips and for damages. Nvidia also said the arbitration, being conducted in New York, should be concluded by June 30 of next year.