Nvidia Announces Quarterly Results, Profits Dropped by 55%
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.