NVIDIA Drops Q4 Revenue Expectations by Half a Billion Dollars, mentioning the lack of sales on their High-End GPUs due to consumers waiting for lower prices.
NVIDIA lowered its Q4 revenue guidance just before the stock market opened this Monday, reports CNBC. In a statement NVIDIA mentions "weaker than forecasted sales of its Gaming and Datacenter platforms," then a "deteriorating economic conditioning in China". The company has lowered its projection in revenue towards $2.2 billion coming from $2.7 billion.
"Q4 was an extraordinary, unusually turbulent and disappointing quarter," Nvidia CEO and founder Jensen Huang, said in a statement. "Looking forward, we are confident in our strategies and growth drivers."
| Previous Q4 Fiscal 2019 Guidance |
Updated Q4 Fiscal 2019 Guidance |
|
| Revenue | $2.70 billion, plus or minus 2% | $2.20 billion, plus or minus 2% |
| Gross margin – GAAP Gross margin – non-GAAP |
62.3%, plus or minus 50 bps 62.5%, plus or minus 50 bps |
55.0%, plus or minus 100 bps 56.0%, plus or minus 100 bps |
| Operating expenses – GAAP Operating expenses – non-GAAP |
$915 million $755 million |
$915 million $755 million |
| GAAP and non-GAAP other income and expense | $21 million | $25 million |
| GAAP and non-GAAP tax rate, excluding discrete items | 8%, plus or minus 1% | 6%, plus or minus 1% |
NVIDIA mentions that sales of "certain high-end GPUs using Nvidia's new Turing architecture" didn't meet expectations because some customers are "waiting for lower price points and further demonstrations of RTX technology in actual games."
Thanks EL1TE for the news submit.
Nvidia Drops Q4 Revenue Expectation by $0.5 Billion
