nVidia has had a hard time of late, with falling profits and slackening sales. The company’s Q4 results don’t show any sign of improvement either – quite the contrary, in fact.
Ending the 25th of January, nVidia’s Q4 period saw a year-on-year drop in revenue from $1.2 billion (£831 million) to $481.1 million (£333 million), a huge 60 per cent decrease. Annual results didn’t see quite such mammoth reductions, nVidia recording a 16 per cent year-on-year decrease, from $4.1 billion (£2.83 billion) to $3.4 billion (£2.35 billion).
These revenues equated to a $147 million (£102 million) Q4 and a $30 million (£21 million) annual net loss. Compared to some companies in the technology arena, nVidia looks to have escaped lightly, although that’s no consolation to nVidia and its shareholders I’ll warrant.
In Nvidia CEO, Jen-Hsun Huang’s words: “November fell off a cliff,” and CFO MArvin Burkett described December as having been even worse. The implication is that the graphics industry is being especially hard hit by the recession, which is especially bad for nVidia which only makes graphics products – unlike rivals Intel and AMD which have fingers in other pies.
Nvidia hopes to have those fortunes reversed its 9400M notebook platform and Ion desktop systems, once the latter is actually commercially available (should it ever be). So far the uptake of 9400M has been relegated to Apple’s latest MacBook line-up, though many other manufacturers are supposed to have systems in the pipeline.
It’s going to be interesting to see how nVidia copes in these difficult times.