Weak demands: Nvidia sees 60% drop in sales

nvidia_logoNvidia has just posted its 4Q financial results that are somewhat worse-than-expected as the company has to bear a huge $148m loss and nearly 60% drop in its sales because of the worldwide weak demands.

Nvidia, the biggest suppliers of graphic chips, showed a loss of 27 cents per share, while it was 42 cents per share for the same period last year.  Similarly, the company reported revenue $481.1m that is nearly 60% down from the previous year $ 1.2b one year back.

Excluding their special items, the loss is $94.4m or 18cents per share.

Different analysts were excepting a loss of 12cents per share with $587m revenue. After the news, Nvidia shares dropped more than 7% in afternoon trading.

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During the last month, the company has already cut its revenue guidance by more than 50%.

Many big suppliers of PC chip suppliers including TSMC have shown concerns about the considerable decrease in orders from worldwide customers. According to TSMC, the chip industry will see further drop by the mid of this year.

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PC market tracker iSuppli says that many high-profit and high-end graphics chips would see a considerable decline in the coming month and PC market would get worse during 2009.

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