Friday, November 12th 2010

NVIDIA Reports Financial Results for Third Quarter Fiscal 2011

NVIDIA (NASDAQ: NVDA) today reported revenue of $843.9 million for the third quarter of fiscal 2011 ended Oct. 31, 2010, up 4.0 percent from the prior quarter and down 6.6 percent from $903.2 million from the same period a year earlier.

On a GAAP basis, the company recorded net income of $84.9 million, or $0.15 per diluted share, compared with a GAAP net loss of $141.0 million, or $0.25 per share, in the previous quarter and GAAP net income of $107.6 million, or $0.19 per diluted share, in the same period a year earlier. GAAP gross margin was 46.5 percent compared with 16.6 percent in the previous quarter and 43.4 percent in the same period a year earlier.

"We have turned the corner," said Jen-Hsun Huang, NVIDIA's president and chief executive officer. "We have restored our speed of execution and are regaining share in desktops. Only seven months after shipping our first processor based on the Fermi architecture, we have begun production on seven more GPUs, including the GeForce GTX 580, which sets a new standard for performance. The Fermi architecture is now in every segment of our desktop, notebook and workstation product lines.

"We've also made big strides this quarter in positioning ourselves at the center of cloud and mobile computing, which are transforming the computer landscape. Tesla now powers some of the world's fastest and greenest supercomputers. And Tegra will soon be featured in a range of smartphones and tablets we're building with our partners," he said.

Outlook
The outlook for the fourth quarter of fiscal 2011 is as follows:
  • Revenue is expected to be up 3 to 5 percent from the third quarter.
  • GAAP gross margin is expected to be flat.
  • GAAP operating expenses are expected to be approximately $300 million.
  • GAAP tax rate is expected to be 18 to 20 percent.
Third Quarter Fiscal 2011 Highlights:
  • NVIDIA held the second annual GPU Technology Conference, which highlighted the growth of parallel computing, with five times more papers submitted and twice as many sessions.
  • The Tianhe-1A supercomputer, which incorporates 7,168 GPUs, was unveiled as the world's fastest supercomputer. Housed in the National Supercomputer Center, in Tianjin, China, the system is three-times more energy efficient than an equivalent CPU-only system and takes up half as much floor space.
  • NVIDIA launched 12 new GPU products, including the NVIDIA GeForce GTS 450 and GT 430.
  • After quarter end, NVIDIA launched and shipped the GeForce GTX 580 graphics card, which was received positively by media and industry analysts.
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7 Comments on NVIDIA Reports Financial Results for Third Quarter Fiscal 2011

#1

Boy oh boy that fool huang sounds happy, wasn't he saying Fermi was a failure the other day.
#2
Tatty_One
by: Taskforce
Boy oh boy that fool huang sounds happy, wasn't he saying Fermi was a failure the other day.
I thought he said that something like aspects of the development > manufacture > retail failed as opposed to "fermi" was a failure? we all kind of know that it took too long anyways.
Posted on Reply
#3

by: Tatty_One
I thought he said that something like aspects of the development > manufacture > retail failed as opposed to "fermi" was a failure? we all kind of know that it took too long anyways.
I'm pretty sure he explained how the architecture failed in some respects, don't really remember but something about too many crossings cause interference of some sort, don't quote me on it though i could be wrong.
#4
Benetanegia
He was talking about GF100 afaik. GF100 != Fermi. GF100 uses Fermi architecture, just like GF104, GF106, GF110 and all the GPUs that Nvidia will release until at least 28nm chips (Kepler) come out. Even then it's not known if Kepler will be based on Fermi or not. GF100 can be labeled as a "relative failure", seeing as how it should have been what GF110 is, but Fermi architecture is not a failure by any means.
Posted on Reply
#5
yogurt_21
gf100 was not a failure, huang pointed outwhat broke down in the manufacturing process and why it happened (no oversight between two arms of the company so eahc arm had it's manager but no one took responsibility to fix the issue, he stated that he'd put someone in place to bear final oversight for each new product from now on).

the product itself works. huang merely explained the reason for the delay both on the technical side and the business side.

now on the financials they have been making descent gains in this last quarter so I'd expect markets to open well, which it looks like they are, 5% rise out of the gate.

edit: actually thinking of picking up a few shares, nvidia's P/E is through the roof right now.
Posted on Reply
#6
Dbiggs9
by: yogurt_21

edit: actually thinking of picking up a few shares, nvidia's P/E is through the roof right now.
i would watch it. :P Tech could be in a bubble, I have seen over 80%(ytd) return just from my tech holdings. Still slimming them down as the market hold's 11k.
Posted on Reply
#7
lane
Fermi Architecture is not a failure, the way it have been released was ... They have face a lot of trouble, and this is a failure for the Engineering team of Nvidia... They have just not be able to release what they was supposed to do, not ever in time, but too on the original specification of the product as it was presented... ( all peoples who work in the industry know you will face problems and this things can happend, i will not bash them ).

It have take 1 years to Nvidia for release the Initial GF100 Fermi as it was presented on October 2009. (aka GF110, a optimised and tweaked /fixed version of the GF100 released in March 2010)

Ofc he will not come and say to Financial partners this, but he rather tell they have finally
launch 7 GPU's since the first GTX4xx launch, and they don't have to be worry ...
Anyway I will be really curious to have the complete numbers for the DX11 family gpu's separated of olders product and professional supply as the Quadro, Tesla...
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