NVIDIA completely withdrew from Russia - $16 million spent to close the office

Back in spring NVIDIA announced the cessation of direct product supplies to Russia, and the company's local office has been operating in a state of uncertainty ever since.
In the quarterly report on Form 10-Q published this week, information about NVIDIA terminating its operations in Russia is stated directly.Source image: NVIDIA In July, the renewal of licenses for proprietary software for Russian customers was terminated.
By early October, rumors emerged about NVIDIA's readiness to reduce its Russian staff or offer relocation to those wishing to do so.
In the latter case, the specialists could move to another country and continue working outside of Russia.
It was reported that employees who refused to change their place of residence at the NVIDIA representative office in Russia were offered to terminate the contract with payment of the severance pay.In the text of the quarterly report on Form 10-Q risks associated with Russia for NVIDIA activities were highlighted in a separate paragraph.
The company reminded that it did not sell almost anything directly to Russia, in any case direct sales in the last fiscal year ended January 30 this year were \"insignificant\".
Basically, the company made money in Russia on graphics processors sold as part of graphics cards of its partners.
And because gaming cards are still supplied to Russia through parallel imports, NVIDIA's withdrawal from Russia should have almost no impact on gaming revenue.The company notes that the Russian market in the last fiscal year formed no more than 2% of its total revenue, and the share in the gaming segment was 4%.
Thus, in the last fiscal year Russia brought NVIDIA about $500 million in the gaming segment.
The amount seems to be decent, but on the background of total revenue of $12.5 billion the potential loss of Russian gaming market will not be a tragedy for NVIDIA.
In reality, there will be no reduction in the gaming segment as supplies of video cards from NVIDIA's partners continue to be shipped to Russia.
Perhaps only a minimal reduction in total revenue due to the cessation of supply of professional cards and gas pedals.
As highlighted in the quarterly report published this week, in the third quarter of this fiscal year NVIDIA phased out all of its activities in Russia.
In the company's calendar the corresponding reporting period ended on October 30, so the rumors about closing the Russian office, which appeared at the beginning of the same month, fit into that period.
In the comments of NVIDIA CFO on the results of the third quarter even indicated the amount of losses related to business restructuring in Russia and closing the local office - it reached $16 million.
Recall that as of the beginning of this year NVIDIA had over 300 employees in Russia, and it was previously reported that they were offered relocation.