Nvidia Says Sales Tanked In Q4….It Really Sucks To Be Them

Imagine for a second that you’re Nvidia. You’ve had issues with your chips which have led to lawsuits. Now it gets worse for you as you release your Q4 and full year numbers:

For the fourth quarter of fiscal 2009, revenue was $481.1 million compared to $1.2 billion for the fourth quarter of fiscal 2008, a decrease of 60 percent. For the twelve months ended January 25, 2009, revenue was $3.4 billion compared to $4.1 billion for the twelve months ended January 27, 2008, a decrease of 16 percent.

I’ll let you read the the gory details in the press release. But the bottom line is that Nvidia is in some amount of trouble. They did try to look at the bright side though:

“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.”

Okay, when a company that lost money says that “it was one of our best years of innovation,” it’s like a movie studio saying that a movie that didn’t make any money is “critically acclaimed.”  It’s simply spin and nothing more.

Needless to say, investors are heading to the exits as the stock is down 12% as I type this.

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