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Nvidia Announces Quarterly Results, Profits Dropped by 55%

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.

  • dragonsqrrl
    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.
    Reply
  • dudewitbow
    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
    Reply
  • tmk221
    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
    Reply
  • ashinms
    Not a good year to be selling GPUs...
    Reply
  • 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.
    Reply
  • NuclearShadow
    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.
    Reply
  • lemlo
    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.
    Reply
  • jessterman21
    It is a small tragedy that Nvidia has clearly created a superior product, but are unable to supply. When 680s and 670s do start rolling, they'll catch up. Those cards are too good.
    Reply
  • yyk71200
    Nvidia has been loosing ground to Radeons. Slowly but steadily. It is only natural that their profits drop.
    Reply
  • K2N hater
    Supply is to blame but the bigger picture is that gamers are buying more consoles and fewer PC parts.
    Reply