Nvidia sales "drop off a cliff"

 

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By Stuart Turton

Posted on 11 Feb 2009 at 09:58

Nvidia saw revenue drop 60% in the fourth quarter, as demand for high-end graphics cards plummeted.

In its fourth quarter earnings call, Nvidia announced revenues had hit $481.1 million, down 60% from the $1.2 billion it recorded last year.

The company also racked up a fourth-quarter loss of just under $148 million, compared to a profit of $257 million this time last year.

Nvidia warned investors back in January that sales in the quarter would be weaker than forecasted, due to weak demand for computers and inventory reductions among its customers. The warning was accompanied by the company slashing its revenue guidance by 50%.

Nvidia chief executive Jen-Hsun Huang was typically blunt in his assessment of the quarter, claiming "November fell off a cliff" and December was worse.