Wednesday, February 12th 2014

NVIDIA Reports Financial Results for Fourth Quarter and Fiscal 2014

NVIDIA today reported revenue for the fourth quarter of fiscal 2014, ended Jan. 26, 2014, of $1.14 billion, up 8.6 percent from $1.05 billion in the previous quarter.

GAAP earnings per diluted share for the quarter were $0.25, up 25 percent from $0.20 in the previous quarter. Non-GAAP earnings per diluted share for the quarter were $0.32, up 23 percent from $0.26 in the previous quarter.

"Quarterly revenue came in well above our outlook, driven by PC gaming, capping an outstanding year for our GPU business," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Tesla and Quadro both achieved record annual revenue. GRID cloud technology is being evaluated at hundreds of large enterprises worldwide. And Tegra K1 is disrupting the auto industry, paving the way to self-piloted cars. The groundbreaking work we are doing in visual computing is expanding the opportunities for our GPUs."

During the quarter, NVIDIA repurchased $37 million of stock and paid a dividend of $0.085 per share, equivalent to $48 million. During the year, NVIDIA returned $1.07 billion to shareholders -- $887 million towards the repurchase of 62 million shares and dividend payments totaling $181 million. NVIDIA will pay its next quarterly cash dividend of $0.085 per share on Mar. 20, 2014, to all shareholders of record on Feb. 27, 2014.

Revenue for the full year was $4.13 billion. GAAP earnings per diluted share for the year were $0.74 and non-GAAP earnings per diluted share for the year were $0.99.

Among highlights of the fourth quarter of fiscal 2014, NVIDIA:
  • Grew GeForce GTX GPU revenue nearly 50 percent over the fourth quarter of fiscal 2013.
  • Launched Tegra K1, NVIDIA's next-generation mobile system-on-a-chip, extending the Kepler architecture across the company's entire line of processors.
  • Demonstrated Denver, NVIDIA's custom 64-bit ARM core inside Tegra K1. This was the first time Android had been shown running on 64-bit ARM.
  • Announced Audi is introducing a new Tegra-powered infotainment system, smart display and digital cockpit. Audi also announced it will use Tegra K1 to power its future piloted-driving initiatives.
  • Launched Tesla K40, the world's fastest accelerator for supercomputing and big data analytics.
  • Partnered with IBM to build supercomputers for the HPC community and accelerate enterprise data analytics applications with GPUs.
NVIDIA's outlook for the first quarter of fiscal 2015 is as follows:
  • Revenue is expected to be $1.05 billion, plus or minus two percent.
  • GAAP and non-GAAP gross margins are expected to be approximately 54.2 percent and 54.5 percent, respectively.
  • GAAP operating expenses are expected to be approximately $454 million; non-GAAP operating expenses are expected to be approximately $413 million.
  • GAAP and non-GAAP tax rates for the first quarter and annual fiscal 2015 are both expected to be 20 percent, plus or minus one percent. If the U.S. R&D tax credit is renewed, the tax rate is expected to be 16 percent.
  • Capital expenditures are expected to be approximately $45 million for the first quarter of fiscal 2015.
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14 Comments on NVIDIA Reports Financial Results for Fourth Quarter and Fiscal 2014

#1
Jorge
At least now PC enthusiasts who pay outrageous prices for Nvidia high end GPU cards know where the money goes and what huge profits are made on these over-priced products.
Posted on Reply
#2
HumanSmoke
by: Jorge
At least now PC enthusiasts who pay outrageous prices for Nvidia high end GPU cards know where the money goes and what huge profits are made on these over-priced products.
PC enthusiasts have known where their money is going long before this titbit of information.

In related news- Jorge, get a life.
Posted on Reply
#3
Pandora's Box
"Grew GeForce GTX GPU revenue nearly 50 percent over the fourth quarter of fiscal 2013."

That's impressive. I'm curious to see AMD's financial report though, interested in seeing how much this whole mining thing affected it.
Posted on Reply
#4
HalfAHertz
Grew GeForce GTX GPU revenue nearly 50 percent over the fourth quarter of fiscal 2013.
That's a really interesting bullet point. If we say that in 2012 the high end was in the 500-600$ range and this year it was in the 800-900s on average, that means that even tho the price increased 45-50%, the amount of GTX GPUs sold was either the same as the previous year or in fact even higher. :twitch:

That's what I call a dedicated fan base...
Posted on Reply
#5
HumanSmoke
by: HalfAHertz
That's a really interesting bullet point. If we say that in 2012 the high end was in the 500-600$ range and this year it was in the 800-900s on average, that means that even tho the price increased 45-50%, the amount of GTX GPUs sold was either the same as the previous year or in fact even higher. That's what I call a dedicated fan base...
That's what I call faulty reasoning.
How can the average be $800-900 ???
Only two Nvidia GTX branded products sit beyond $800 ( GTX Titan and GTX 690)...and they certainly don't make anything like the retail price as revenue per card. You're telling me that Nvidia sell so many Titans and 690's that it weights the average high enough that the both these cards must outsell the combined numbers of GTX 650/650Ti (~$90 - $130), GTX 660 (~$190), GTX 760 (~$230-270), GTX 770 (~$320), GTX 780 (~$500), GTX 780 Ti (~$700) , and various mobile GTX cards within the same range ? That's a shitload of Titans.

FWIW, You can't extrapolate much information from the 50% growth of "GeForce GTX" bullet point without corroborating numbers. It is expected that Nvidia's discrete desktop market share should move to 65% of the market (slight increase from 64.5% in Q3), but mobile add-in are tipped to be the big winners (66% market share), so the revenue increase is likely due more to increased sales than higher ASPs.
Posted on Reply
#6
Xzibit
There is no numbers given to break down the GPU segment.

There is something interesting in the SEC filing...
Credit from a weak die/packaging material set (B) (7,782)
(B) Release of the remaining warranty reserve related to a weak die/packaging material set, as of January 26, 2014.
Curious to know what can cause an almost 8million dollar mistake. Anyone been fired lately ?
Posted on Reply
#7
The Von Matrices
by: Xzibit
There is no numbers given to break down the GPU segment.

There is something interesting in the SEC filing...


Curious to know what can cause an almost 8million dollar mistake. Anyone been fired lately ?
It's probably the remainder of their fund to deal with solder issues from around 2007-2008. It's only a tiny fraction of what that mistake actually cost.
Posted on Reply
#8
HumanSmoke
by: Xzibit
Curious to know what can cause an almost 8million dollar mistake. Anyone been fired lately ?
Shouldn't think so. The charge is probably the amortised expense from the G84/G86 based MCP/GPU underfill write-down. Warranty replacements and repairs of affected components. $7.7m would indicate that the affected parts warranty period is running out. AFAIK the last eutectic solder parts still covered by warranty are extended warranty products- and most of those are split between Apple and Nvidia

EDIT: As The Von Matrices has said ( I think the total charge was ~$475m)
Posted on Reply
#10
HumanSmoke
by: Xzibit
Guess Apple will be the first one to talk to eco friendly aliens.... for now o_O
Well at least they haven't got to the stage of selling their existing real estate and then renting it back from the new owners! ;)
Posted on Reply
#11
HalfAHertz
by: HumanSmoke
That's what I call faulty reasoning.
How can the average be $800-900 ???
Only two Nvidia GTX branded products sit beyond $800 ( GTX Titan and GTX 690)...and they certainly don't make anything like the retail price as revenue per card. You're telling me that Nvidia sell so many Titans and 690's that it weights the average high enough that the both these cards must outsell the combined numbers of GTX 650/650Ti (~$90 - $130), GTX 660 (~$190), GTX 760 (~$230-270), GTX 770 (~$320), GTX 780 (~$500), GTX 780 Ti (~$700) , and various mobile GTX cards within the same range ? That's a shitload of Titans.

FWIW, You can't extrapolate much information from the 50% growth of "GeForce GTX" bullet point without corroborating numbers. It is expected that Nvidia's discrete desktop market share should move to 65% of the market (slight increase from 64.5% in Q3), but mobile add-in are tipped to be the big winners (66% market share), so the revenue increase is likely due more to increased sales than higher ASPs.
My bad I thought those are considered gt and only the 770 and up are gtx
Posted on Reply
#12
Eagleye
by: HumanSmoke
Well at least they haven't got to the stage of selling their existing real estate and then renting it back from the new owners! ;)
I think that comment will come back to haunt you in couple of years. Nvidia is not in the same position it once enjoyed.

I feel Nvidia is going to get some serious competition from the HPC side, including the Mobile. The Desktop is safe for now.
Posted on Reply
#13
HumanSmoke
by: Eagleye
I think that comment will come back to haunt you in couple of years
I doubt it. I'm commenting on the current situation, not making any predictions.
If I were in the prediction business, I might look at the on-going stock buyback initiative and deduce that if there is any change, it points to Nvidia strengthening its valuation for the possibility of merger/acquisition on more favourable terms. I'd sincerely doubt the company would divest itself of assets and show weakness to potential suitors...especially whilst it has cash reserves.
by: Eagleye
Nvidia is not in the same position it once enjoyed.
Very few of the traditional x86 computing companies are. People have been forecasting doom for Nvidia since before they launched the NV1....so nothing new there.
Posted on Reply
#14
Fourstaff
Nvidia earning lots of monies? Thanks bitcoin for driving the prices up
Posted on Reply
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