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.