Subject: General Tech | February 20, 2019 - 09:07 PM | Tim Verry
Tagged: quarterly earnings, nvidia, financial results
On Valentine's Day NVIDIA released its yearly and quarterly financial results for fiscal year 2019. While yearly revenue was up 21% from last year at 11.72 billion, its quarterly revenue of 2.2 billion fell 31% versus the previous quarter and 24% versus the same quarter last year. On the yearly revenue front, Nvidia credits gaming, data center, professional visualization, and automotive products/divisions for its record revenue in FY2019.
Nvidia launched its RTX 2060 graphics card in Q4.
Q4 of FY2019 ended Jan 27th and saw operating expenses increase 6% versus last quarter and 25% YoY. while operating income fell 72% QoQ and 73% YoY. Net Income of $567 million fell 54% versus the third quarter and 49% versus Q4'FY18. Earnings per diluted share also fell to 92 cents. In Q4 Nvidia completed $700 million in share repurchases.
|Q4 FY19||Q3 FY19||Q4 FY18||Q/Q||Y/Y|
|Gross Margin||54.7%||60.4%||61.9%||(570 bps)||(720 bps)|
|Operating Expenses||$913||$863||$728||+ 6%||+ 25%|
|Diluted Earnings Per Share||$0.92||$1.97||$1.78||(53%)||(48%)|
In FY2019 Nvidia reportedly returned $1.95 billion to shareholders through $371 million in cash dividend payments and $1.58B in share repurchases. Looking at FY2020 the graphics giant plans to return $2.3 billion to shareholders through a combination of dividends and share buybacks.
Nvidia CEO Jensen Huang was quoted in the press release in stating
“This was a turbulent close to what had been a great year. The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter.
“Despite this setback, NVIDIA’s fundamental position and the markets we serve are strong. The accelerated computing platform we pioneered is central to some of world’s most important and fastest growing industries – from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth,”
Looking into next year, Nvidia expects Q1 FY2020 revenue to hit $2.2 billion (+/- 2%) and for yearly revenue to stay flat or decrease slightly. First quarter gross margins and operating expenses are expected to increase to 58.8% and $930 million respectively (those are GAAP numbers).
Nvidia has had a rough last quarter and both graphics chip makers AMD and Nvidia have experienced yet another cryptocurrency mining craze and crash in 2018 except this time around the companies had jumped more into it than before with mining specific graphics card lines and all. Nvidia's stock price (currently at $158.55) has fallen quite a bit since October but is still above where it was just a few years ago. Nvidia has a wide range of products and diversified interests where I am not worried about their future, but I don't know enough to say with confidence which way things will go in FY2020 and if their outlook predictions will hold true. The company launched its RTX 2060 last quarter and is expected to bring budget and mid-range cards sans ray tracing support (e.g. the rumored GTX 1660 Ti) this quarter along with the professional market products ramping up with data center and professional workstation graphics cards and projects like NVIDIA DRIVE and the Mercedes Benz partnership – and that's only a couple slices of what the company is involved in – so it will be interesting to see how FY2020 shakes out for them in general as well as for enthusiasts.
You can dig into the nitty-gritty numbers over at investor.nvidia.com if you are curious.
Subject: General Tech, Storage | February 1, 2018 - 03:07 AM | Tim Verry
Tagged: Seagate, quarterly earnings, Hard Drive, financial results, enterprise
Seagate Technology has announced its quarterly earnings for the second quarter of fiscal year 2018 (the quarter ending 12/29/2017). The Cupertino-based company has reported quarterly revenue of $2.9 billion, net income of $159 million, and diluted EPS of 55 cents. On a Non-GAAP reporting basis, Seagate saw Q2 FY2018 net income of $431 million and earnings per share of $1.48.
Seagate's revenue remained flat year-over-year, but increased 11.5% versus the previous quarter. Net income decreased 12% QOQ and 46% YoY using GAAP accounting methods, but on a non-GAAP basis Seagate reports a 54% increase versus the previous quarter and 4.6% increase versus the same quarter last year so it's not all bad news. The company is also managed to amass quite a bit of cash including $850 million from operations and $773 of free cash flow.
|Q2 FY2018||Q1 FY2018||Q2 FY2017||QOQ||YoY|
|Revenue||$2.9 billion||$2.6 billion||$2.9 billion||+11.5%||=|
|Net Income (GAAP)||$159 million||$181 million||$297 million||-12%||-46%|
|Diluted Earnings Per Share (GAAP)||0.55||0.62||1.00||-11.5%||-45%|
|Net Income (Non-GAAP)||$431 million||$279 million||$412 million||+54%||+4.6%|
|Diluted EPS (Non-GAAP)||1.48||0.96||1.38||+54%||+7.2%|
Seagate manufactures both mechanical hard drives and solid state drives, and while the company cranks out many internal and external drives for consumers, the company is very much focused on the enterprise market, especially where its solid state storage is concerned. Seagate states in its press release that it is heavily focused on cloud storage with its 60TB 3.5" SAS drive and NVMe add-in-card (which it demonstrated at FMS 2016). The company has partnered with Facebook to build its 1U Lightning storage solution (up to 120TB of flash storage using 60 2TB M.2 NVMe drives) and continues to target the enterprise and exascale/HPC markets with their absolutely massive and ever-growing data demands for big data analytics of financial and user data, uploaded and user-generated media, cloud backup, and research/simulation data for supercomputers. Further, the company continues to push mechanical enterprise storage to ever higher capacities with Barracuda Pro and also has its Ironwolf NAS and sequential-optimized Skyhawk drives for surveillance systems. On the flash storage front, Seagate has its Nytro M.2 NVMe and Nytro SAS SSDs.
Facebook's 1U Lightning JBOF System using 60 Seagate XM1440 M.2 SSDs.
I am interested to see where Seagate (STX) will go with its flash storage (Will they ever bring it to the consumer market in a big way? They do have a few products, but their focus seems to be mostly on enterprise.) and if they will manage to match or surpass Western Digital and Toshiba this year in the enterprise HDD capacity war. Currently, the company's Barracuda, IronWolf, and Exos drives top out at 12TB including the second generation Helium-sealed versions.
- Seagate BarraCuda Pro 10TB Review - Massive Helium Client HDD
- FMS 2016: Seagate Demos Facebook Lightning, 60TB 3.5" SSD!
- Seagate Duet Hard Drive Keeps Your Cloud Close, Syncs Files With Amazon Drive
- CERN Data Centre passes the 200-petabyte milestone
Subject: General Tech | January 31, 2018 - 07:31 PM | Tim Verry
Tagged: western digital, quarterly earnings, financial results
Western Digital has reported its quarterly earnings for the second quarter of its fiscal year 2018 (the quarter ending 12/29/2017). The San Jose-based storage company reported revenue of $5.3 billion and an operating income of $955 million. Under GAAP reporting, Wester Digital is reporting a net loss of $823 million (-$2.78/share) which includes $1.6 billion tax charge resulting from Western Digital repatriating foreign assets under the new Tax Cuts and Jobs Act.
Under non-GAAP reporting, Western Digital had operating income of $1.4 billion and net income of $1.2 billion ($3.95/share). The company is reporting 9% revenue growth year over year and 2% growth versus last quarter. Operating income increased 72% versus the same quarter last year and 3% compared to the previous quarter (Q1 FY2018). Using non-GAAP numbers, Wester Digital saw operating income increase 47% and net income increase 78% year-over-year. Versus Q1 FY2018, operating income stayed the same (1.4 billion) and net income increased 9%.
Western Digital announced a 50-cent per share cash dividend on January 16th. Western Digital has a positive outlook for following quarters now that it has resolved negotiations with Toshiba to secure flash production and withdrawn its litigations. The company stated that it is on track to sample MAMR hard drives in the second half of this year and is ramping up production of 96-layer BICS 3D NAND X4 flash later this year. Western Digital's positive numbers are reportedly heavily influenced by its performance in the enterprise market with its large capacity hard drives and the continued growth of its flash product stacks.
- Western Digital MAMR Tech Pushes Future HDDs Beyond 40TB
- CES 2017: Western Digital Launches WD Black NVMe PCIe SSD
- Western Digital Launches 12TB Gold Hard Drive To Consumers
Subject: General Tech | July 17, 2014 - 11:37 PM | Tim Verry
Tagged: quarterly earnings, GCN, financial results, APU, amd
Today, AMD posted financial results for its second quarter of 2014. The company posted quarterly revenue of $1.44 billion, operating income of $63 million, and ultimately a net loss of $36 million (or $0.05 loss per share). The results are an improvement over both the previous quarter and a marked improvement over the same quarter last year.
The chart below compares the second quarter results to the previous quarter (Q1'14) and the same quarter last year (Q2'13). AMD saw increased revenue and operating income, but a higher net loss versus last quarter. Unfortunately, AMD is still saddled with a great deal of debt, which actually increased from 2.14 billion in Q1 2014 to $2.21 billion at the end of the second quarter.
|Q2 2014||Q1 2014||Q2 2014||Q2 2013|
|Revenue||$1.44 Billion||$1.40 Billion||$1.44 Billion||$1.16 Billion|
|Operating Income||$63 Million||$49 Million||$63 Million||($29 Million)|
|Net Profit/(Loss)||($36 Million)||($20 Million)||($36 Million)||($74 Million)|
The Computing Solutions division saw increased revenue of 1% over last quarter, but revenue fell 20% year over year due to fewer chips being sold.
On the bright side, the Graphics and Visual Solutions group saw quarterly revenue increase by 5% over last quarter and 141% YoY. The massive YoY increase is due, in part, to AMD's Semi-Custom Business unit and the SoCs that have come out of there (including the chips used in the latest gaming consoles).
Further, the company is currently sourcing 50% of its wafers from Global Foundries.
“Our transformation strategy is on track and we expect to deliver full year non-GAAP profitability and year-over-year revenue growth. We continue to strengthen our business model and shape AMD into a more agile company offering differentiated solutions for a diverse set of markets.”
-AMD CEO Rory Reed
AMD expects to see third quarter revenue increase by 2% (plus or minus 3%). Following next quarter, AMD will begin production of its Seattle ARM processors. Perhaps even more interesting will be 2016 when AMD is slated to introduce new x86 and GCN processors on a 20nm process.
The company is working towards being more efficient and profitable, and the end-of-year results will be interesting to see.
Also read: AMD Restructures. Lisa Su Is Now COO @ PC Perspective
Subject: General Tech | January 18, 2014 - 12:49 AM | Tim Verry
Tagged: quarterly earnings, Intel, financial results, earnings
Intel has released financial results for the full year and fourth quarter of 2013. According to Intel CEO Brian Krzanich, the company had a "solid fourth quarter." Although full year revenue and net income fell, there was a slight increase in Q4 net income and revenue YoY compared to Q4 2012.
In 2013 Intel had $52.7 billion in total revenue along with $12.3 billion operating and $9.6 billion net income. Compared to the previous year (2012), Intel's revenue fell 1% while operating income and net income fell 13% and 16% respectively. Specifically of interest to the PC Perspective readers, the PC Client Group had 2013 revenue of $33.0 billion which was down 4% versus 2012.
|Q4 2012||Q4 2013||YoY Change||2012||2013||YoY Change|
All $ figures are in billions (USD).
As far as the previous quarter (Q4 2013) alone, Intel made revenue of $13.8 billion which was a 3% increase versus the same quarter in 2012. Quarterly net income also increased 6% YoY to $2.6 billion.
Looking forward into 2014, Intel estimates revenue for the first quarter (Q1 2014) to be $12.8 billion. Unfortunately, Intel plans to cut approximately 5,000 jobs (specifically 5% of its workforce) in 2014 despite the "solid" company performance.
You can find more information in this Intel press release.
Subject: General Tech | August 3, 2013 - 06:56 PM | Tim Verry
Tagged: us cellular, smartphone, wireless carrier, financial results
US Cellular recently released financial results for the second quarter of 2013. US Cellular, a Chicago-based company, serves approximately 5 million wireless customers in 23 states. It reported second quarter revenue of $911 million, net income of $143.4 million, and Earnings Per Share (EPS) of $1.69.
Compared to the same period last year, US Cellular saw decreased revenue ($1.03 billion in Q2 2012), but increased net income and EPS versus the $52.7 million and $0.62 in Q2 2012 respectively.
Included in the recently-ended second quarter results is $480 million in cash from the de-consolidation "Divesture Transaction" deal.
Looking towards the second half of 2013, US Cellular plans to add Apple devices to its lineup and continue the build out of its 4G LTE cellular network. According to US Cellular, the company expects to see 2013 yearly revenue of $3.615 to $3.715 billion and annual income of up to $700 million.
More information can be found in the press release.
Subject: General Tech | July 27, 2013 - 12:12 AM | Tim Verry
Tagged: logitech, gaming, financial results
Logitech recently posted its financial results for its first quarter of fiscal year 2014. The company announced that sales went up 2% YoY to $478 million. It had a net income of $1 million and an slight operating profit. Both numbers are a step up compared to the $51 million net loss and $59 million operating loss in the same quarter last year. Q1 FY2014 saw gross margin reach 35.2% compared to 31% in Q1 FY2013.
While Logitech saw OEM sales drop by 6% and sales of its LifeSize division drop by 18%, overall sales increased by 5% thanks to a 12% and 4% sales increase in the Americas and Asia markets respectively. Additionally, sales fell by 3% in the Europe, Middle East, and African markets.
|Q1 FY2014||Q1 FY2013|
|Sales||$478 million (+2%)||$469 million|
|Net Income||$1 million||($51 million)|
|Retail Sales (Total)||+5%||-base line-|
|OEM Sales||-6%||-base line-|
|LifeSize Division Sales||-18%||-base line-|
Logitech experienced the most growth in sales of its tablet accessories, PC gaming peripherals, and wireless speaker products which amounted to a 90% increase versus last year.
According to Logitech, the company expects $2 billion in sales and a $50 million operating income through the entire fiscal 2014 year. It expects to see a gross margin of 39%.
The full Logitech press release can be found over at Market Watch.
Subject: General Tech | July 24, 2013 - 06:48 AM | Tim Verry
Tagged: OS X, mac, iphone, financial results, apple
Apple announced its financial results for its fiscal year 2013 Q3 yesterday, and it performed well. Note that Apple’s fiscal Q3 2013 quarter ended on July 29, 2013.
Apple reported fiscal Q3 2013 revenue of $35.3 billion, and net profit of $6.9 billion. That works out to $7.47 per diluted share. During this quarter, Apple held its annual WWDC, and announced new operating systems for both its mobile and desktop products. The company sold 31.2 million iPhones (a record for Q3) 14.6 million iPads, and 3.8 million Macs. It sold slightly fewer iPads and Macs than the same quarter last year, but significantly more iPhones.
Compared to the same quarter last year, Apple increased overall revenue but saw less net profit and EPS. In fiscal Q3 2012 Apple has revenue of $35 billion, net profit of $8.8 billion, and EPS of $9.32 per diluted share. In FY Q3 2012, Apple sold 26 million iPhones, 17 million iPads, and 4 million Macs.
|FY'13 Q3||FY'12 Q3 (YoY)||Future Outlook|
|Revenue||$35.3 billion||$35 billion||$34 to $37 billion|
|Net Profit||$6.9 billion||$8.8 billion|
|Gross Margin||36.9%||42.8%||36 to 37%|
|iPhones Sold||31.2 million||26 million|
|iPads Sold||14.6 million||17 million|
|Macs Sold||3.8 million||4 million|
Apple has announced, as a result of its third quarter performance, a $3.05 dividend per common stock to be paid on August 15, 2013. It had $7.8 billion cash flow in FY 2013 Q3 and returned $18.8 billion of cash to shareholders in the form of dividends and share repurchases.
According to Apple, the company's outlook for its fourth quarter is promising, with expected revenue between $34 billion and $37 billion with a gross margin of between 36% and 37%. Apple expects to release both iOS 7 and OS X Mavericks later this year along with new products (like the new Mac Pro) this fall and next year.
Subject: General Tech | July 19, 2013 - 10:37 PM | Tim Verry
Tagged: windows 8, Surface RT, microsoft, financial results
Software giant Microsoft recently released its financial report for its fiscal Q4 2013 (FY13 Q4) ended June 30, 2013. The financial results cover both quarterly and yearly results.
Microsoft saw quarterly revenue of $19.09 billion of fiscal Q4 2013 as well as $77.85 billion of revenue for fiscal year 2013. Quarterly revenue of $19.09 billion fell approximately 7% from fiscal Q3 2013 revenue of $20.49 billion. Further, yearly revenue increased 6% versus fiscal year 2012.
Additionally, Microsoft had quarterly operating income and net income of $6.07 billion and $4.97 billion respectively.
As far as annual financial results, Microsoft’s operating income and Earnings Per Share both increased to the tune of 23% and 29% respectively versus the previous fiscal year.
The reduced performance in fiscal Q4 2013 is partially attributed to a $900 million charge for Surface RT “inventory adjustments,” and a $733 million European Commission fine which reduced operating income. On the positive side, Microsoft was able to count $782 million worth of defrred revenue from its Office Upgrade Offer.
According to the Microsoft press release:
“Our diverse business continues to deliver solid financial results, even as we navigate the evolving device market,” said Peter Klein, chief financial officer at Microsoft. “Looking ahead, we will continue to invest in long-term growth opportunities to drive our devices and services strategy forward and deliver ongoing value to shareholders.”
Looking forward, Microsoft has announced that CFO Peter Klein will be leaving the company at the end of the current fiscal year after 11 years total at Microsoft and 4 years in the Chief Financial Officer role. Further, Microsoft expects operating expenses to grow by as much as 6% over fiscal year 2014.
More information can be found in the full financial report.
Subject: General Tech | July 19, 2013 - 05:23 PM | Tim Verry
Tagged: amd, financial results, graphics and visual solutions, x86
AMD recently released its financial results for the second quarter of 2013. AMD had a decent quarter that demonstrated the positive effects of its ongoing restructuring efforts, but the company is, unfortunately, still operating at a loss.
In Q2 2013, AMD reported revenue of $1.16 billion, a 40% gross margin, operating loss of $29 million, and a net loss of $74 million. It experienced loss per share of $0.10. Total revenue has increased 7% versus last quarter, but is still down 18% YoY (Year over Year).
Within AMD, there are two major groups that bring in revenue: the Computing Solutions group and the recently-renamed Graphics and Visual Solutions group.
The Computing Solutions group is responsible for processors while the Graphics and Visual Solutions group is responsible for all of AMD’s graphics technologies, including GPUs.
The Computing Solutions groups experienced a 12% increase in revenue versus last quarter, and a 20% decrease in revenue versus the same time last year. According to AMD, the increase in revenue is primarily due to “significantly higher” notebook shipments and an increased number of desktop and server shipments. Further, the YoY decrease is the result of lower overall unit shipments and lower processor Average Selling Prices (ASP).
While the processor division is doing better, the Graphics and Visual Solutions group saw revenue decreases versus last quarter and last year. Specifically, revenue fell 5% QoQ and fell 13% YoY. AMD reasons that the Average Selling Price of its GPUs has increased YoY while also falling versus last quarter.
During Q2 2013 (and 2013 in general), AMD announced design wins for all the major gaming consoles and Apple’s upcoming Mac Pro desktop with dual FirePro cards, released a slew of new A-Series and embedded G-Series APUs, unleashed its 5.0GHz FX-9590 Piledriver-based CPU, and launched low power Opteron X processors. AMD's performance in Q2 was the result of its continued focus on restructuring as well as "opportunities in high growth and traditioanl PC businesses" according to CEO Rory Read.
According to the company, its outlook for next quarter is a revenue increase of 22% (+/- 3%), or approximately $1.42 billion.