Nvidia's fiscal Q1 ended on April 26, 2015. On May 7, the company reported its financial results for the first quarter of 2016 operations, and the news is mostly positive. With revenue and margins up, and many growth opportunities ahead, the company is excited about the year to come.
Revenue for the quarter is up 4 percent over Q1 2015, GAAP gross margins are at a record high of 56.7 percent, and as Jen-Hsun, President and CEO of Nvidia said, "The importance of visual computing is evident all around us."
The company expects to continue on this path of growth with new emerging technologies such as VR and self-driving cars, using its expertise in visual computing to position itself as a leader in these new markets, as well as advance deep learning. Q1 2015 saw revenue reach $1.10 billion, while Q1 2016 reported $1.15 billion. Expectations put revenue at $1.01 billion for Q2 2016.
Nvidia will be increasing its quarterly dividend payout by 15 percent. Stockholders of record on May 21 will receive $0.0975 per share, up from $0.0085. A total of $800 million is intended to be returned to shareholders within FY2016, between dividends and share buybacks. The board of directors has also voted to extend the repurchase program through December 2018, with the potential of up to $2 billion being used for this purpose.
A judge recently delivered a favorable pre-trial ruling over the litigation between Samsung/Qualcomm. Executives feel very positive about the overall outcome, stating they wouldn't defend so vigorously if they didn't expect a favorable financial outcome. Expectations of court costs run in the $70-$90 million range.
Not everything was good news, however. Further to the report that Icera Modem is up for sale, Nvidia estimates restructuring charges between $100 and $125 million. These costs are expected to incur if the sale of the Icera is not complete within fiscal 2016, and will be comprised of severance packages and other termination benefits, along with other costs associated with winding down the business. The company is open to either the sale of operations or technology.
Overall, things are looking pretty bright for Team Green right now.
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