Quarter Down but Year Up
Yesterday NVIDIA released their latest financial results for Q4 2012 and FY2012. There was some good and bad mixed in the results, but overall it was a very successful year for NVIDIA.
Q4 saw gross revenue top $953.2 million US with a net income of $116 million US. This is about $53 million less in gross revenue and $62 million down in net income as compared to last quarter. There are several reasons as to why this happened, but the majority of it appears to be due to the hard drive shortage affecting add-in sales. Simply put, the increase in hard drive prices caused most OEMs to take a good look at the price points of the entire system, and oftentimes would cut out the add-in graphics and just use integrated.
Tegra 3 promises a 50% increase in revenue for NVIDIA this coming year.
Two other reasons for the lower than expected quarter were start of the transition to 28 nm products based on Kepler. They are ramping up production on 28 nm and slowing down 40 nm. Yields on 28 nm are not where they expected them to be, and there is also a shortage of wafer starts for that line. This had a pretty minimal affect overall on Q4, but it will be one of the prime reasons why revenue looks like it will be down in Q1 2013.