Nvidia forecasts massive Q4 revenue drop

Sales down 40 to 50 per cent

By Austin Modine, 13th January 2009

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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. ®

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Posted Wednesday 14th January 2009 12:27 GMT

James

Unsurprising

Did they really expect people to upgrade their graphics card every three months for ever?

Posted Wednesday 14th January 2009 12:27 GMT

Lionel Baden

im not suprised

I Tried to buy a iCore 7 System with 4 gig of ram and 2X nvidia 280 GTX just after christmas and lo and behold I didnt get the credit cause i have 3 dependants.

What a shocker !

And people wonder that the end user isnt buying shit its cause we cant get the f'ing credit !

i would be more than happy to pay over the next 3 years for that system.

But i refuse to buy a half cocked computer that would need replacing in 7 months i need something that will last !!

Posted Tuesday 13th January 2009 23:34 GMT

David Simpson