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 said. The company said that no further comment would be offered, and no conference call explaining the situation would be held.
For the third quarter of fiscal 2009, Nvidia reported $897.7 million compared to $1.12 billion for the third quarter of fiscal 2008, a decrease of 20 percent. At the time, chief financial officer Marv Burkett said that the company's "point estimate" for the fourth quarter was a revenue decline of 5 percent, but that that estimate was difficult to estimate.
Nvidia's estimate would seem to put revenue guidance at about $449 million or so, roughly 40 percent of fiscal third-quarter revenue. That would represent a 63 percent drop from the fiscal fourth quarter 2008 earnings Nvidia reported in Feb. 2008.
Nvidia will report its fiscal fourth-quarter 2009 earnings on Feb. 10.
Nvidia is certainly not alone among chipmakers predicting poor fourth-quarter showings. Both Intel and AMD, which competes directly against Nvidia in the PC graphics business, have forecast fourth-quarter revenue shortfalls.
Source : http://www.pcmag.com/
