Nvidia cuts revenue outlook, citing hard disk shortage

Nvidia cuts revenue expectations for the fourth quarter ending January 29. A shortage of hard disk drives is the main culprit.

Nvidia has lowered revenue expectations for the period ending January 29, citing the hard disk drive shortage in Thailand.

Revenue for the fourth quarter is expected to be lower than the company's previous outlook provided with its financial results for the third quarter ended October 30, 2011, the company said this afternoon.

Revenue is now expected to be $950 million, plus or minus 1 percent, compared with original expectations of $1.066 billion, plus or minus 2 percent, provided on November 10, 2011.

"The global disk-drive shortage caused by the flooding in Thailand had more impact on the mainstream GPU (graphics processing unit) segment than anticipated. Shipments by some PC [makers] were reduced. And the higher prices of disk-drives constrained some PC [maker's] ability to include a GPU in their systems," Nvidia said in a statement.

But it's not just hard drives that are causing problems, as the company also cited diminished orders for its Tegra 2 chip that powers tablets and smartphones. "Additionally, the Tegra 2 mobile business declined more rapidly than expected, ahead of devices based on the Tegra 3 processor ramping into production in the first quarter of calendar-year 2012," Nvidia said.

Nvidia will report financial results on February 15.

About the author

Brooke Crothers writes about mobile computer systems, including laptops, tablets, smartphones: how they define the computing experience and the hardware that makes them tick. He has served as an editor at large at CNET News and a contributing reporter to The New York Times' Bits and Technology sections. His interest in things small began when living in Tokyo in a very small apartment for a very long time.

 

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