Nvidia has announced its Q2 financial results, reporting revenue of $1.1 billion, up 13 per cent year-on-year from $977 million, in line with the previous quarter and yielding a non-GAAP EPS of $0.30 which tops analyst estimates by $0.10.
After witnessing a 3.5 per cent decline in its revenue in fiscal 2014, the company has regained its growth momentum; revenue for the first half of fiscal 2015 was up 14 per cent to a record $2.21 billion from $1.94 billion a year earlier. Its second-quarter net income increased to $127.98 million from $96.45 million. Gross margin in the quarter was 56.4 per cent on a non-GAAP basis, up from 55 per cent from the previous quarter.
"We had a great quarter with strong gains in each of our three growth areas -- Gaming, Datacenter & Cloud, and Mobile," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Our Tesla datacenter business is in high gear, benefiting from strong demand from cloud service providers, and our new SHIELD tablet is generating considerable excitement. NVIDIA's accelerating growth stems directly from investments in extending our visual computing leadership to the mobile-cloud revolution."
Tegra triumph
Revenues from Nvidia's Tegra processors grew 74 per cent year-over-year to $159 million, with thanks to 200 per cent growth in sales from a year ago "led by mobile devices and automobile infotainment systems."
The chip maker is forecasting third-quarter revenue of $1.2 billion, with an outlook of non-GAAP gross margins to be at 55.5 per cent. Non-GAAP operating expenses are expected to be approximately $416 million, along with tax rates at 19 per cent and capital expenditures of around $40 to $50 million.
GPU business
Many HEXUS readers are primarily interested in the company for its GPUs and we hear mixed results concerning this core business activity. Looking sequentially the GPU business was down 2 per cent from last month – mirroring the seasonal PC decline at this time of year. However GeForce GPU sales as upgrades, rather than built-into new PCs, were said to help offset that seasonal drop. Also, compared to a year ago the GPU business is 2 per cent up.
Shield tablet arrives in Europe next week
As a reminder to readers, Nvidia will make its new Shield tablet available in Europe next week to coincide with the kickoff of the Gamescom show in Cologne, on the 14th August. HEXUS did a review of this games orientated Android tablet just over a week ago, awarding it a 'Recommended' badge. It will be priced at £229 in the UK.
