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Nvidia Announces Quarterly Results, Profits Dropped by 55%

By - Source: Nvidia | B 50 comments

Nvidia's profit dropped by more than 55 percent in the three months ended April 29 (Q1 FY2013).

The company did not reveal details about the reasons for the decline, but it was predicted previously that the supply constraints of 28 nm Kepler GPUs would create a problem for the company in the quarter. However, Nvidia was able to beat carefully adjusted analyst expectations for the quarter and was more profitable than anticipated. The company posted net income of $60.4 million on sales of $924.9 million. In the year-ago quarter, Nvidia reported net income of $135.2 million and sales of 962.0 million.

CEO Jen-Hsun Huang was confident that his company would improve during the current quarter as "Kepler GPUs are accelerating [Nvidia's] business" and Tegra is "on a growth track again." Huang also reacted briefly to recent claims that Intel's Ivy Bridge may be affecting the discrete GPU business: "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," he said in a prepared statement.

Nvidia forecasts revenue of between $990 million and $1.05 billion for the current quarter.

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  • 31 Hide
    Anonymous , May 12, 2012 9:19 PM
    dudewitbowyeah, i would assume the lack of gtx 680 in the market hurt them a bit(they sold like hotcakes) though with the advent of the 670, which is a good price for its power, the 660 and 660 ti will be priced will determine the profit of nvidia if they are priced alone the lines of the 7850, 7870, and 7950


    They sold like hotcakes because they hardly had any to sell.
  • 18 Hide
    lemlo , May 12, 2012 9:32 PM
    I'll bet when they actually have something to sell they may make some money. But for the most part this year it seems they are selling theoretical products. A few lucky magicians have managed to materialize their products.
  • 17 Hide
    tmk221 , May 12, 2012 8:39 PM
    I think there is no gk110. It looks like releasing gtx680 as gk106 is marketing trick. It looks to me like Nvidia is doing paper lunches and selling rumors about powerful gk110 to convince as much people as possible to wait. They are trying to buy some time so that they can resolve supply issues without loosing customers. I just wonder why would they hold off a gk110 gpu that could literally kill AMD? Some say that there is no point..gk106 is powerful enough. But that's BS. GTX680 is great but is nothing more than what gtx580 was compared to 6970 and what gtx480 was compared to 5970...

    What I am trying to say is that it would be stupid not to use your advantages and let competitors catch up. Unless your competitors are 2 or 3 generations behind like AMD is to intel, but that's not a case in AMD-Nvidia head to head race
Other Comments
  • 0 Hide
    dragonsqrrl , May 12, 2012 8:09 PM
    I think there's a possibility, although remote, that Nvidia may announce the gk110 at the GPU Tech Conference next week. At the very least I would expect them to make some announcement regarding upcoming Quadro or Tesla tech. It's the ideal venue to disseminate such information.
  • 7 Hide
    dudewitbow , May 12, 2012 8:39 PM
    yeah, i would assume the lack of gtx 680 in the market hurt them a bit(they sold like hotcakes) though with the advent of the 670, which is a good price for its power, the 660 and 660 ti will be priced will determine the profit of nvidia if they are priced alone the lines of the 7850, 7870, and 7950
  • 17 Hide
    tmk221 , May 12, 2012 8:39 PM
    I think there is no gk110. It looks like releasing gtx680 as gk106 is marketing trick. It looks to me like Nvidia is doing paper lunches and selling rumors about powerful gk110 to convince as much people as possible to wait. They are trying to buy some time so that they can resolve supply issues without loosing customers. I just wonder why would they hold off a gk110 gpu that could literally kill AMD? Some say that there is no point..gk106 is powerful enough. But that's BS. GTX680 is great but is nothing more than what gtx580 was compared to 6970 and what gtx480 was compared to 5970...

    What I am trying to say is that it would be stupid not to use your advantages and let competitors catch up. Unless your competitors are 2 or 3 generations behind like AMD is to intel, but that's not a case in AMD-Nvidia head to head race
  • 31 Hide
    Anonymous , May 12, 2012 9:19 PM
    dudewitbowyeah, i would assume the lack of gtx 680 in the market hurt them a bit(they sold like hotcakes) though with the advent of the 670, which is a good price for its power, the 660 and 660 ti will be priced will determine the profit of nvidia if they are priced alone the lines of the 7850, 7870, and 7950


    They sold like hotcakes because they hardly had any to sell.
  • 7 Hide
    NuclearShadow , May 12, 2012 9:29 PM
    It's fine, just re-arrange prices, make up loss of sales with lower prices to boost sales, if done correctly you earn more money. For the top of the line cards that are naturally going to be rather expensive no matter what give more incentives to buy them. This could range from a variety of things, exclusive beta accesses to up coming games, to a redeemable game code, or even strike a deal with Valve and have a redeemable code for Steam that works as cash and lets the consumer pick what they want. You would be amazed how little bonus incentives help sell things.

    If only Nivida had their chair adjusters for executives work more often I would consider working for them. Oh well. I like my chair adjusted twice a day.
  • 18 Hide
    lemlo , May 12, 2012 9:32 PM
    I'll bet when they actually have something to sell they may make some money. But for the most part this year it seems they are selling theoretical products. A few lucky magicians have managed to materialize their products.
  • -1 Hide
    yyk71200 , May 12, 2012 10:29 PM
    Nvidia has been loosing ground to Radeons. Slowly but steadily. It is only natural that their profits drop.
  • -9 Hide
    bardacuda , May 12, 2012 11:14 PM
    It's not surprising considering the supply (yield?) issues. The GK104 in the 680 and 670 were only meant to be mid-range chips in the first place and use smaller dies than the previous gen's top-end cards, but they are at top-end prices...so if they can fix the supply problems then the profit problems should go away in a hurry.
  • 3 Hide
    mcd023 , May 12, 2012 11:49 PM
    at least it was profit and not income! That'd hurt!
  • -5 Hide
    atminside , May 12, 2012 11:53 PM
    not enough games out there that demand high end graphics....we can thank consoles for that
  • 4 Hide
    Marcus52 , May 13, 2012 1:13 AM
    tmk221I think there is no gk110. It looks like releasing gtx680 as gk106 is marketing trick. It looks to me like Nvidia is doing paper lunches and selling rumors about powerful gk110 to convince as much people as possible to wait. They are trying to buy some time so that they can resolve supply issues without loosing customers. I just wonder why would they hold off a gk110 gpu that could literally kill AMD? Some say that there is no point..gk106 is powerful enough. But that's BS. GTX680 is great but is nothing more than what gtx580 was compared to 6970 and what gtx480 was compared to 5970...What I am trying to say is that it would be stupid not to use your advantages and let competitors catch up. Unless your competitors are 2 or 3 generations behind like AMD is to intel, but that's not a case in AMD-Nvidia head to head race


    Your logic is even more faulty than your confusion between fact and your fantasy, and your spelling.

    The GTX 680 is and was sold as GK104, not GK 106. You totally just made that up.
  • 11 Hide
    Marcus52 , May 13, 2012 1:16 AM
    K2N haterSupply is to blame but the bigger picture is that gamers are buying more consoles and fewer PC parts.


    No one believes you; fail troll.
  • 10 Hide
    DRosencraft , May 13, 2012 1:20 AM
    They mentioned that at the GPU conference they'll be talking about mobile and cloud computing. Translation; Tegra chips and Quadros most likely (though Quadros maybe not). Don't look too hard for anything new targeting consumer desktops. Nvidia has for the most part made their bed with desktop graphics for now. They're likely more focused on fixing yield issues than they are with introducing new cards to compete right now. And quite honestly, as exciting as the gk110 would be for enthusiasts to play around with, it wouldn't help them all that much in terms of profit. It'd be best for them to hold off on that until they get supply straightened out. They're running the risk right now of people getting turned off and just jumping to AMD. People will only be so patient. They are only willing to hold off on builds for so long. The smarter plan for them would be to focus on that supply issue and hold off new cards that would likely suffer the same supply problem if released now.
  • 0 Hide
    atikkur , May 13, 2012 2:02 AM
    seems many people are holding off right now, they are waiting for something bigger (powerful for compute and all arround) or something affordable... 150-250 price lines. meanwhile, previous gen cards are still doing the job fine.
  • -1 Hide
    dragonsqrrl , May 13, 2012 2:53 AM
    tmk221They are trying to buy some time so that they can resolve supply issues without loosing customers. I just wonder why would they hold off a gk110 gpu that could literally kill AMD?

    So let me get this straight... first, you're assuming that Nvidia has gk110 ready to go, and is simply delaying its launch in order to milk as much out of gk104's current high-end position for as long as possible. And because it would somehow be more beneficial for Nvidia to simply churn the rumor mill about a phantom high-end compute GPU than to actually develop one, gk110 therefore doesn't exist.

    I have to agree with Marcus52, your reasoning just doesn't make sense. There are so many reasons for Nvidia needing a GPU like gk110. There are also far more likely explanations than a conspiracy for why it hasn't been officially announced yet. For instance, the difficulty in manufacturing such a large and complex GPU on a new fabrication process. It probably simply isn't ready yet. There are also so many leaks and rumors circulating about this GPU, that I think most people would find it more difficult to not believe in its existence.
  • -9 Hide
    casperstouch , May 13, 2012 3:15 AM
    I think it may have dropped from this Intel 3000 in almost every Laptop out there. I even bought a Dell that had an Nvidia 525m, but it seems to only use it as a physX device. Directx still shows the intel 3000 as the video card, if I disable it the motherboard stops talking to the 525.
  • 2 Hide
    alextheblue , May 13, 2012 4:42 AM
    atikkurseems many people are holding off right now, they are waiting for something bigger (powerful for compute and all arround) or something affordable... 150-250 price lines. meanwhile, previous gen cards are still doing the job fine.
    7850 is a great buy at $250. It has great compute performance and good all-around gaming performance. So I have no idea what you're talking about. Maybe you mean Nvidia-only buyers in that price range are holding off right now. I've owned cards from both, and I'm glad they finally released 670, step in the right direction pricing-wise. But the mid-range 7800s don't have very fierce competition at the moment. Maybe the 660 series cards?
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