NVIDIA Shows $178.3 million Net Income In Q3 2011 Earnings

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News Posted: Sat, Nov 12 2011 12:20 AM
Know what time it is? If you're a mega-corp, it's money-making time. Q3 2011 earnings have been pouring in for a few weeks now, with NVIDIA being the latest to chime in. The company's third-quarter results are quite impressive, with revenue increasing 4.9% to $1.07 billion from $1.02 billion in the previous quarter. GAAP net income was $178.3 million, or $0.29 per diluted share; while GAAP gross margin increased to 52.2%. That represented a fifth consecutive record, compared with 51.7% in the previous quarter and 46.5% in the same period a year earlier.

"NVIDIA's strategy is coming into its own, as the world becomes increasingly visual and mobile," said Jen-Hsun Huang, president and chief executive of NVIDIA. "Our GPU business accelerated in the third quarter, driven by strong demand from gamers and the professional market. And our mobile business benefited from new devices coming onto the market. With Tegra 3 phone wins well ahead of Tegra 2's pace, we're expecting strong growth in the year ahead."

Full for the full report, highlights and all, have a look below.

NVIDIA Reports Financial Results for Third Quarter Fiscal Year 2012

SANTA CLARA, CA -- (Marketwire) -- 11/10/2011 -- NVIDIA (NASDAQ: NVDA)

-Revenue increased 4.9 percent to $1.07 billion from $1.02 billion in the previous quarter.
-GAAP net income was $178.3 million, or $0.29 per diluted share; non-GAAP net income was $217.0 million, or $0.35 per diluted share.
-GAAP gross margin increased to 52.2 percent; non-GAAP gross margin increased to 52.5 percent from the second quarter's 51.9 percent. Both are records for the fifth consecutive quarter.

NVIDIA (NASDAQ: NVDA) today reported revenue of $1.07 billion for the third quarter of fiscal 2012 ended Oct. 30, 2011, up 4.9 percent from the prior quarter, and up 26.3 percent from $843.9 million in the same period a year earlier.

On a GAAP basis, the company recorded net income of $178.3 million, or $0.29 per diluted share, for the third quarter of fiscal 2012. That compares with net income of $151.6 million, or $0.25 per diluted share, in the prior quarter and $84.9 million, or $0.15 per diluted share, in the same period a year earlier.

On a non-GAAP basis -- which excludes stock-based compensation, amortization of acquisition-related intangible assets, other acquisition related costs, and the tax impact associated with these items -- net income was $217.0 million, or $0.35 per diluted share. That compares with net income of $193.5 million, or $0.32 per diluted share, in the prior quarter, and net income of $117.4 million, $0.20 per share, in the same period a year earlier.

GAAP gross margin was 52.2 percent, a fifth consecutive record, compared with 51.7 percent in the previous quarter and 46.5 percent in the same period a year earlier. Non-GAAP gross margin, at 52.5 percent, was also a record, and compares with 51.9 percent in the prior quarter and 46.8 percent in the same period a year earlier.

"NVIDIA's strategy is coming into its own, as the world becomes increasingly visual and mobile," said Jen-Hsun Huang, president and chief executive of NVIDIA. "Our GPU business accelerated in the third quarter, driven by strong demand from gamers and the professional market. And our mobile business benefited from new devices coming onto the market. With Tegra 3 phone wins well ahead of Tegra 2's pace, we're expecting strong growth in the year ahead."

Outlook

Our outlook for the fourth quarter of fiscal 2012 is as follows:

-Revenue is expected to be relatively flat, plus or minus two percent, from the third quarter.

-GAAP and non-GAAP gross margins are expected to be flat to up 0.5 percentage points from the respective GAAP and non-GAAP gross margins in the third quarter.

-GAAP operating expenses are expected to be approximately $372 million; non-GAAP operating expenses are expected to be approximately $330 million.

-Our GAAP and non-GAAP tax rates are both expected to be between 14 to 16 percent, excluding any discrete tax events that may occur in the quarter.

We estimate depreciation and amortization for the fourth quarter to be approximately $53 million to $57 million. Capital expenditures are expected to be in the range of $30 to $40 million.

Diluted shares for the fourth quarter are expected to be approximately 618 million.

Third Quarter Fiscal 2012 and Recent Highlights:

-NVIDIA launched Tegra 3, the world's first quad-core processor for super phones and tablets, bringing PC-class performance levels to tablets and phones. Simultaneously, Asus announced that its Eee Pad Transformer Prime, the first device based on Tegra 3, will be available worldwide in December.

-In addition, NVIDIA and its partners added three more Tegra®-based superphones to the eight already available -- LG Optimus EX, LG Optimus BQ and Motorola Electrify. They also added 13 new tablets, bringing the total to 23. New models include the Asus Slider, Sony Tablet S, Sony Tablet P, Toshiba Scorpio 7", Acer Iconia A100, Sharp Galapagos E-Reader, Dell Streak 10, Lenovo ThinkPad, and Samsung's Galaxy Tab 8.9.

-NVIDIA Tesla processors were chosen by Oak Ridge National Laboratory, which will deploy 18,000 of them in its new machine, "Titan," expected to be the world's fastest supercomputer, with the potential to deliver speeds of over 20 petaflops.
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Good job Nvidia. I will say if they can transition to 32nm smoothly things will improve for them.

Word is 32nm is giving chip makers fits.

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Keep up the good work Nvidia!! I will never switch to ATI.

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realneil replied on Sat, Nov 12 2011 9:16 PM

I like both company's products.

What ever they made this year, they earned. My two GTX-570's are bad-ass cards for the money.

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

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gazd1 replied on Sun, Nov 13 2011 3:08 AM

I like nVidia & I also use nVidia in my desktop computers. When I use ATI, it is mainly just to see how it performs compared to nVidia's products. Keep up the good work nVidia, we need more competition.

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AKwyn replied on Sun, Nov 13 2011 3:52 PM

I wouldn't say that they're the underdogs per say... Contrary to the argument, they seem to be the Intel of the graphics games, often being mostly ahead of AMD in terms of dies and performance (except for that Fermi mishap that happened around the time of the 480.) I mean the 580 often leads the pack when it comes to AMD and the fact that it's highly overclockable just tips the scale towards NVIDIA instead of AMD...

Now... I'm not saying NVIDIA is bad, I'm just saying that AMD is a very viable competitor (there may be more but AMD and NVIDIA is the most prominent.) I mean they're in the same position as it's processor department (but not as worse) in the fact that it's GPU's are usually behind AMD... That doesn't mean they're not powerful but they falter at things such as tessellation and computational power (which NVIDIA seems to succeed in.) But they do make up for that by being especially competitive in being ahead of the curve and in pricing (6950 being lower then the 560Ti (which was designed to be more powerful then a 6850) for example.), be aware that they released the first DX11 chips while NVIDIA was having troubles with the manufacturing of their first Fermi cards... So I can say that they're trying hard to at least provide a challenge to NVIDIA and that challenge provides competition which has thrived today in forums like this one...

So yeah... Speaking about NVIDIA's $178.3 million income, they do make good products and I even used two of them (580 and 560Ti SLI) for a while but I guess that it ultimately wasn't for me... But still, that $178.3 is justified though, go NVIDIA!

 

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