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NVIDIA Profits Down 47.9%

The company is optimistic but its finances don't paint the best picture

May 11, 2012 12:26 GMT  ·  By
NVIDIA posts quarterly financial results
   NVIDIA posts quarterly financial results

NVIDIA has just published the financial results for the first quarter of its latest Fiscal Year, which happens to be FY 2013. Anyone expecting record figures will be disappointed.

Due to the slowdown following last year's winter holiday season, as well as the decrease in entry-level and even mainstream graphics card sales, owed to CPUs and APUs with integrated video, NVIDIA could only post a drop in revenue and profits.

The drop wasn't subtle either. Though revenue didn't go down by much (3%), profits plummeted by 47.9%.

Even when not counting stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs and a legal settlement in the fourth quarter of fiscal 2012, profits dropped 38.3%.

For those who want numbers, NVIDIA made $924.9 million revenue in the quarter ended on April 29, which is 714.64 million Euro. To compare, in the fourth quarter of FY 2012, it gathered up $953.2 million, or 736.51 million Euro.

Meanwhile, the net income was $60.4 million (46.66 million Euro), compared to $116 million (89.63 million Euro).

The Santa Clara, California-based company hopes to make up for everything throughout the current quarter, estimating revenue at $990 million-$1.05 billion (764.95-811.31 million euro).

The Kepler graphics architecture most recently spawned the GeForce GTX 670 graphics card. Together with GTX 680, 690, and the notebook 600M line, it will act as a tip of the spear during Q2, while Tegra does something similar on the mobile front.

"Kepler GPUs are accelerating our business. Our newly launched desktop products are winning some of the best reviews we've ever had," said Jen-Hsun Huang, president and chief executive officer of NVIDIA.

"Notebook GPUs had a record quarter. And Tegra is on a growth track again, driven by great mobile device wins and the upcoming Windows on ARM launch.Graphics is more important than ever. Look for exciting news next week at the GPU Technology Conference as we reveal new ways that the GPU will enhance mobile and cloud computing.”