Things have been bad for NVIDIA Corporation (NASDAQ: NVDA) for some time. Unfortunately, they are not looking any better. The company did not just lower its guidance. Its guidance is so bad that it looked like a blind man in the batter’s box.
NVIDIA guided revenues for the fourth quarter ending January 25to a new lower level with a decline of 40% to 50% sequentially. Thecompany blamed this on being on weakness inend-user demand and inventory reductions by NVIDIA’s channel partnersin the global PC supply chain. In short, graphics processors andchipsets on the higher-end are not selling.
So what does this mean? Based upon revenues of $897.6 millionfor the quarter ending on October 28, 2008, that would assign a newrevenue range of $448.8 million to $538.5 million for this current quarter. Itis hard to believe that Thomson Reuters (First Call) is up this high,but that consensus estimate is listed as $805.51 million.
If you want to know how bad this is compared with a year-over-yearreading, let’s hope you are sitting down. NVIDIA put up over $1.2billion in revenue for the quarter ending January 27, 2008.
We have noted how the sales ofsub-$500 and now sub-$400 PC’s is dragging the tech sector down. Butthis forecast looks about as pretty as the remains of a 100 people who get hit by atrain in a narrow tunnel. It is beyond ugly.
Jon C. Ogg
January 13, 2009
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
