It wouldn’t be February if we didn’t hear the Q4 FY14 earnings from NVIDIA! NVIDIA does have a slightly odd way of expressing their quarters, but in the end it is all semantics. They are not in fact living in the future, but I bet their product managers wish they could peer into the actual Q4 2014. No, the whole FY14 thing relates back to when they made their IPO and how they started reporting. To us mere mortals, Q4 FY14 actually represents Q4 2013. Clear as mud? Lord love the Securities and Exchange Commission and their rules.
The past quarter was a pretty good one for NVIDIA. They came away with $1.144 billion in gross revenue and had a GAAP net income of $147 million. This beat the Street’s estimate by a pretty large margin. As a response, trading of NVIDIA’s stock has gone up in after hours. This has certainly been a trying year for NVIDIA and the PC market in general, but they seem to have come out on top.
NVIDIA beat estimates primarily on the strength of the PC graphics division. Many were focusing on the apparent decline of the PC market and assumed that NVIDIA would be dragged down by lower shipments. On the contrary, it seems as though the gaming market and add-in sales on the PC helped to solidify NVIDIA’s quarter. We can look at a number of factors that likely contributed to this uptick for NVIDIA.
Q4-2012 In a Nutshell
Tis the reporting season. Yes, that time of year when some of the major players in the computing world get together and tell us all how well they did this past quarter. Ok, so they do not necessarily get together to announce results, but they sure time them that way. Today was AMD’s turn (and Apple’s), and the results were not nearly as positive as what Intel had to offer a few days ago.
Q4 2011 was flat in terms of revenue as compared to Q3. The company had gross revenue of $1.69 billion and had a net income loss of $177 million. That net income is not necessarily a bad result, but more on that later. Margins rose to 46%, which is still a far cry from Intel’s 65% for the past quarter. Gross revenue was up 2% from last year, which considering the marketplace and Intel’s dominance, is a solid win for AMD.
When we start talking about non-GAAP results, AMD had a net income of $138 million. The difference between those two numbers (a loss vs. a nice profit) is that the loss came from one time writeoffs. AMD has lowered its stake in GLOBALFOUNDRIES to 8.8%, and in so doing incurred a hefty charge. This is not so much money lost as it is lost value in the company.
Subject: Editorial | November 16, 2011 - 09:08 PM | Josh Walrath
Tagged: tesla, tegra, Results, Q3 2012, nvidia, income, fermi
Late last week NVIDIA reported their Q3 2012 (they have an unconventional reporting calendar), and the results were overwhelmingly positive for the once struggling company. Throughout 2010 NVIDIA struggled with the poor results of their 400 series of graphics cards as compared to the relative smooth sailing that AMD had going into the DirectX 11 marketplace. NVIDIA was also struggling to get the original Tegra to be accepted by the marketplace, which never occurred with that particular generation of products.
NVIDIA reported gross revenues of $1.07 billion for the previous quarter, with a net income (GAAP) of $178.3 million. Margins improved to a respectable 52.5%, which is generally considered high for a fabless semiconductor company. When we compare these results to AMD which had reported earnings a few weeks ago, we see that while NVIDIA had less revenue (AMD reported $1.7 billion) the company had nearly double the overall profit (AMD reported around $97 million). AMD has a strong CPU business, which is something that NVIDIA is working on. AMD reported margins in the 45% range, but they also have a larger workforce and larger capital expenditures at this time.
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