Nvidia lowers Q4 revenue expectations

Summary:Nvidia's forecast change is just one of many we might see this year due to the worldwide hard drive shortage.

Nvidia has announced that it will be lowering revenue expectations for the fourth quarter ending this Sunday, January 29.

Revenue is now expected to be $950 million, plus or minus 1 percent. Last November, Nvidia originally expected revenue to come in at $1.07 billion.

The forecast changes come down to basically two reasons.

The first and most obvious would be the global disk-drive shortage as a result of the flooding in Thailand. Nvidia cited in a statement that this "had more impact on the mainstream GPU segment than anticipated" and that "shipments by some computer OEMs were reduced."

Furthermore, the now higher prices on disk-drives are deterring some PC OEMs from including a GPU altogether. Not good for Nvidia.

The second reason comes in on the mobile front as the Tegra 2 mobile business has not done as well and is declining more rapidly than expected.

Devices running on Nvidia's Tegra 3 processor are supposed to go into production during the first quarter of this calendar year.

Nvidia will be reporting its financial results for the fourth quarter on Wednesday, February 15, but there will not be a conference call held in conjunction with the announcement.

Related:

Topics: Enterprise Software, Banking

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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