Nvidia Revenue Drops 60 Percent in Q4

Nvidia late yesterday reported its financial results for the fourth quarter of fiscal 2009 and the fiscal year ended January 25, 2009.

As with the rest of the computer chip industry, Nvidia saw a significant decrease in business in the fourth quarter. It reported revenue for the fourth quarter of fiscal 2009 was $481.1 million, which represents a decrease of 60 percent from the $1.2 billion for the fourth quarter of fiscal 2008. Nvidia saw a net loss of $147.7 million, or $0.27 per share.

Without a doubt the dismal fourth quarter put a big dent in the overall results for the year. For the twelve months ended January 25, 2009, revenue was $3.4 billion compared to $4.1 billion for the twelve months ended January 27, 2008, resulting in a decrease of 16 percent. Net loss for the fiscal year was $30.0 million, or $0.05 per share, a disappointing follow up to the net income of $797.6 million, or $1.31 per diluted share, from the year before.

Like every other company out there in Silicon Valley, Nvidia is also looking at ways to reduce costs. Jen-Hsun Huang, president and CEO of Nvidia, confirms the action, saying, “The environment is clearly difficult and uncertain. Our first priority is to set an operating expense level that balances cash conservation while allowing us to continue to invest in initiatives that are of great importance to the market and in which we believe we have industry leadership. We have initiatives in all areas to reduce operating expenses.”

Huang did try to highlight the positive, however, and added, "Although fiscal 2009 was extremely difficult, it was one of our best years of innovation. We made many important advances in graphics processing with PhysX and 3D Vision, GPU computing with CUDA and Tesla, and mobile computing with ION and Tegra. I am pleased with the excellent achievements we made in each of these important areas.”

Nvidia’s fourth quarter dip falls exactly in line with the overall industry trend. Late last month, Jon Peddie Research found that GPU shipments were way down regardless of which vendor. The trend carried over the CPUs as well, which also saw a similar drop.

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  • bf2gameplaya
    I'm glad nVidia is still around as who else is in the position to give us ray tracing as the next big thing - Intel? AMD? Not a chance.
  • Dmerc
    Intel will give us ray tracing very easily. Do a search for Quake 3 raytraced and you will be surprised on which machine it is running. An Intel.
  • A Stoner
    Duh, Henry Paulson and George Bush both stood up in the middle of the theater and screamed fire. Told the world that calamity was upon us. Told every worker that they could expect to be unemployed soon. Told every manufacturer and sales business that they would not be able to get loans. Told the world to basically hunker down and not spend their money, because next week they may not make any new money, a crisis is upon us. So businesses stopped buying computers, consumers stopped upgrading graphics cards and other things. Instead of going further into debt buying American's actually paid off large portions of their credit card debts. I for one know a joke of a scare when i see one. I do not believe in man made global warming, and I do not believe there is a financial crisis that is other than the one made up by Paulson and friends to force feed us pathetic citizens the idea that we have to give more to the government than we already do. I bought a new card, GTX 285 the week it launched $349.99 I think it was. I also got myself 8GB of ram, I think $125 for (2) 2GBx2 DDR2 1066. Later on I will be buying a new CPU cooler. Later this year I will build an HTPC after I get more educated on what I need to make it work. In all likelyhood that will mean either a discrete GPU from nVidia, or a motherboard from nVidia. I hope more Americans start to see through the haze created by Paulson and freinds soon, so that the USA economy can recover very quickly. Noting that in every other recession the world has known productivity has always fallen before unemployment and large layoff began. This recession saw unemployment rise shortly after Paulson's scream in the theater and large layoffs in anticipation of falling productivity. I have every confidence that nVidia will weather the storm and once the fog clears will be in a strong position in the future.