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."
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