Original URL: http://www.theregister.co.uk/2009/01/13/nvidia_q4_09_revenue_guidence_revision/

Nvidia forecasts massive Q4 revenue drop

Sales down 40 to 50 per cent

By Austin Modine

Posted in Financial News, 13th January 2009 19:46 GMT

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. ®