14 DAY TRIAL // Santa Clara, California-based leading graphics chip maker NVIDIA has just announced its financial results for the fourth quarter of the fiscal 2009 and the fiscal year ended January 25, 2009. As expected, the graphics chip maker's Q4 revenue was significantly lower than previous estimations, with numbers revealing a massive 60% drop in revenue, compared to the same results in the fourth quarter of FY2008. The company's net loss has been reported at $147.7 million, which represents a drop of $0.27 per share. For the full fiscal year of 2009, NVIDIA recorded a 16% decrease in revenue.
“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,” said Jen-Hsun Huang, president and CEO of NVIDIA. “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.”
The graphics chip maker, known for its high-end GeForce graphics cards, has recorded a GAAP (Generally Accepted Accounting Principles) loss of $30 million or $0.05 per share, compared to the company's $797.6 million, or $1.31 per share, recorded for the year ended January 27, 2008. With a decrease of 16 percent, the company's overall revenue was of $3.4 billion, compared to the 4.1 billion for the previous year.
The company's financial results have been somewhat expected, as the chip maker has been faced with a number of issues in 2008, including the faulty mobile GPUs. In addition, the HD 4000-series graphics cards released by its competitor, AMD, have also decreased NVIDIA's overall market share.
The Santa Clara, California-based chip maker is expected to announce new products in the upcoming months, as it is preparing for the release of its next-generation 40nm-based GeForce graphics cards. Currently, the company's GeForce GTX 285 and GTX 295 graphics cards, released in early 2009, hold the number one spot in the highest-performance single-GPU and dual-GPU graphics card market.