Nvidia forecasts massive Q4 revenue drop
Sales down 40 to 50 per cent
Nvidia has warned that its revenue will fall sharply below previous estimates due to collapsing demand from end-users and PC makers in the global recession.
The graphics chip maker now expects to report a decline in its fiscal fourth quarter sales of between 40 and 50 per cent compared to the previous quarter. Based on its third quarter revenue of $897.7m, Nvidia now expects Q4 sales to fall to between $538.62m and $448.85m.
In a November conference call with investors, Nvidia projected a sales decline of only about 5 per cent.
In fiscal Q4 the previous year, Nvidia reported revenue of $1.20bn.
The company blamed its massive revenue whiff on "further weakness in end-user demand and inventory reductions by Nvidia's channel partners."
The company will report its fiscal Q4 earnings on February 10. ®