A new GamesBeat event is around the corner! Learn more about what comes next.
Nvidia said that its net income fell 48 percent for the first fiscal quarter ended April 29. But the graphics-chip maker beat expectations and its stock is rising.
Revenues for the quarter were $924.9 million, down 4 percent from a year ago. Net income was $60.4 million, or 10 cents a share, compared with $135.2 million, or 22 cents a share a year ago. That’s a 55 percent drop.
But on an adjusted basis, Nvidia reported 16 cents a share. Analysts were expecting revenue of $915.7 million and 10 cents a share.
Many feared that a slowdown in PC sales and the continued hard drive shortage (due to last fall’s flooding in Thailand) would hurt Nvidia in the quarter. Nvidia is balancing its investment in its core business of making graphics chips for PCs with its expansion into the Tegra product line, or chips for mobile devices.
Three top investment pros open up about what it takes to get your video game funded.
“Kepler graphics processing units (GPUs) are accelerating our business,” said Jen-Hsun Huang, president and chief executive officer of Nvidia, in a statement. “Our newly launched desktop products are winning some of the best reviews we’ve ever had. 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.”
He added, “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.”
In the second fiscal quarter ending at the close of July, Nvidia forecasts revenues of $990 million to $1.05 billion. The company will make a 10-year, one-time donation to Stanford Hospital of $25 million.
“Nvidia had a solid quarter but its success was a bit hampered with TSMC’s lack of ability to ship the new Kepler architecture-based discrete graphics solutions,” said Patrick Moorhead, an analyst at Moor Insights & Strategy. “The good news for Nvidia is that they see a path to improved volumes and they have the architecture to beat, which will now be rolling into even higher margin and revenue Quadro and Tesla commercial designs. I also believe Nvidia are being conservative on Windows RT volumes, but that is wise, given Microsoft’s lack of transparency on their plans.”
GamesBeatGamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
- Newsletters, such as DeanBeat
- The wonderful, educational, and fun speakers at our events
- Networking opportunities
- Special members-only interviews, chats, and "open office" events with GamesBeat staff
- Chatting with community members, GamesBeat staff, and other guests in our Discord
- And maybe even a fun prize or two
- Introductions to like-minded parties