Nvidia reported annual revenue of $3.4 billion, a 16% year-over-year decrease, while fourth quarter revenue was down 60% year-over-year at $481.1 million. Nvidia realized a net loss of $147.6 million, a GAAP loss of 27 cents a share. Excluding special items, non-GAAP loss per share of 18 cents was worse than the street expected 11 cent loss. Nvidia shares were down today from $8.57 to $8.15, a 12.55% loss for the day following yesterday's drop of 7.2% in after-hours trading.
Cash, cash equivalents, and marketable securities was down $49 million to $1.26 billion. Nvidia regained market share in its core high end desktop GPUs, but overall desktop GPU demand was soft with growth dropping 34%, coupled with trends to more integrated graphics solutions in laptops, leading to discrete laptop GPU a growth decline of 63%. During the conference call, CFO Marvin Burkett stated "Today we can’t say confidently when and by how much revenue will increase. We can only say that we currently don’t see further declines and our outlook is for flat to slightly up revenue for the first quarter."
Despite the financial turmoil Nvidia has experienced over the past couple quarters, I still believe that it is a strong company with a lot of long-term potential. Their most recent technological advancements have placed them the forefront of parallel computing with CUDA, a platform that can accelerate computationally intensive tasks up to 100x over CPUs and that is being taught in over 100 universities globally. Likewise PhysX presents a very tangible advantage for Nvidia GPU cards over AMD/ATI, or will at the very least lead to licensing revenues. They seem to be aware of the cannibalization of notebook GPU revenues caused by netbook and handheld sales, and have better positioned themselves with their ION and Tegra Solutions. That being said, it is never easy to see such significant loses, but Nvidia still has the ability to turn things around, highly dependent on the success of their vision for the future of computing.
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