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NVIDIA suffering from HDD shortage and poor Tegra 2 sales

Posted on Wednesday, January 25 2012 @ 12:14:57 CET by


NVIDIA announced yesterday that its fourth quarter results will be published on February 15, 2012, and the company also downgraded its revenue expectations. NVIDIA now expects revenue to be $950 million, plus or minus 1 percent, compared with original expectations of $1,066 million, plus or minus 2 percent. The graphics chip maker blames the HDD supply crisis and poor sales of Tegra 2 devices.
NVIDIA (NASDAQ: NVDA) today announced that it expects revenue for the fourth quarter ending Jan. 29, 2012, to be lower than the company's previous outlook provided with its financial results for the third quarter ended Oct. 30, 2011.

Revenue is now expected to be $950 million, plus or minus 1 percent, compared with original expectations of $1,066 million, plus or minus 2 percent, provided on Nov. 10, 2011.

The global disk-drive shortage caused by the flooding in Thailand had more impact on the mainstream GPU segment than anticipated. Shipments by some PC OEMs were reduced. And the higher prices of disk-drives constrained some PC OEMs' ability to include a GPU in their systems.

Additionally, the Tegra 2 mobile business declined more rapidly than expected, ahead of devices based on the Tegra 3 processor ramping into production in the first quarter of calendar-year 2012.

No conference call will be held in conjunction with this business update. Additional commentary pertaining to the fourth quarter will be available when NVIDIA reports financial results on Feb. 15, 2012.




 



 

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