Revenues Could Fall By 50 Percent, predict Nvidia

Revenues Could Fall By 50 Percent, predict Nvidia It was recently informed by the graphics maker Nvidia Corp. that due to weakness in end-user demand, Q4 revenue will decline by up to 50 percent sequentially.

Nvidia reported, “Specifically, the massive shortfall was a result of further weakness in end-user demand and inventory reductions by Nvidia's channel partners in the global PC supply chain.”

Nvidia reported $897.7 million for the Q3 of fiscal 2009 compared to $1.12 billion for the third quarter of fiscal 2008, a decrease of 20 percent.

“The company's point estimate for the fourth quarter was a revenue decline of 5 percent, but that estimate was difficult to estimate,” said chief financial officer Marv Burkett.

It has been learnt that Nvidia estimate would seem to put revenue guidance at about $449 million or so, nearly 40 percent of fiscal third-quarter revenue, which would represent a 63 percent drop from the fiscal fourth quarter 2008 earnings Nvidia reported in Feb. 2008.

On 10th February, Nvidia will report its fiscal fourth-quarter 2009 earnings.

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