GRAPHICS OUTFIT Nvidia had a tumultuous fourth quarter, with revenues sinking by almost a quarter year-over-year.
Although it performed better than some had expected after lowered its earnings projections last month, the firm posted $2.21bn in fourth-quarter revenue, which marks a 24 per cent year-on-year decline and a 31 per cent slump compared to the previous quarter.
Worse, the company made $294m in operating income, down a hefty 73 per cent year-on-year and 72 per cent from the previous quarter.
Nvidia's gaming unit took the biggest hit with revenues sinking 45 per cent year-on-year, which the company blamed on "weakness in gaming GPUs and a decline in shipments of SoC modules for gaming platforms."
The firm admitted that sales of its Turing RTX 2070 and 2080 graphics cards came in below company expectations, which Nvidia CEO Jensen Huang said could be due to the GPU's high-end prices; lower-priced cards based on the new flagship architecture didn't arrive on shelves until months later.
The finger of blame was also pointed in the direction of the RTX 2060, which Nvidia was forced to delay due to the "oversupply" of GTX 1060 cards created by waning cryptocurrency market.
"The inability to launch [the] 2060 was a big inhibitor for us, but we did so at CES," Huang quipped, according to Tom's Hardware, adding that the company expects GPU channel inventories to stabilise by the end of the first quarter.
It wasn't all bad news for Nvidia in Q4, though. The firm's data centre and automotive businesses saw growth of 12 per cent and 23 per cent. And while it's quarterly earnings were a disappointment, the firm earned $11.72bn in revenue for 2018, a 21 per cent increase year-on-year.
"Despite this setback, Nvidia's fundamental position and the markets we serve are strong," Huang said in a statement.
"The accelerated computing platform we pioneered is central to some of world's most important and fastest growing industries -- from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth." µ
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