NVIDIA Reports Financial Results for First Quarter Fiscal 2011

[btarunr]

NVIDIA reported revenue of $1.0 billion for the first quarter of fiscal 2011 ended May 2, 2010, up 2 percent from the prior quarter and up 51 percent from $664.2 million in the same period a year earlier. On a GAAP basis, the company recorded net income of $137.6 million, or $0.23 per diluted share, for the first quarter of fiscal 2011. That compares with $131.1 million, or $0.23 per diluted share, in the previous quarter and a net loss of $201.3 million, or $0.37 per share, in the same period a year earlier.

Gross margin increased to 45.6 percent for the first quarter fiscal 2011 from 44.7 percent in the previous quarter and 28.6 percent in the same period a year earlier.

• Revenue grew 2 percent quarter-on-quarter to $1.0 billion
• GAAP net income increased to $137.6 million, or $0.23 per diluted share
• GAAP gross margin improved to 45.6 percent

NVIDIA today reported revenue of $1.0 billion for the first quarter of fiscal 2011 ended May 2, 2010, up 2 percent from the prior quarter and up 51 percent from $664.2 million in the same period a year earlier.

On a GAAP basis, the company recorded net income of $137.6 million, or $0.23 per diluted share, for the first quarter of fiscal 2011. That compares with $131.1 million, or $0.23 per diluted share, in the previous quarter and a net loss of $201.3 million, or $0.37 per share, in the same period a year earlier.

Gross margin increased to 45.6 percent for the first quarter fiscal 2011 from 44.7 percent in the previous quarter and 28.6 percent in the same period a year earlier.



"With our new Fermi-class GPUs in full production, NVIDIA's key profit drivers are fully engaged," said Jen-Hsun Huang, NVIDIA CEO and president. "We shipped a few hundred thousand Fermi processors into strong consumer demand. Our Quadro business for workstations grew strongly, fueled by pent up demand from enterprise customers and new growth markets like video editing. And we had record revenue from Tesla processors for high-end servers. We anticipate continued strength in these businesses over the coming quarters."

Outlook
The outlook for the second quarter of fiscal 2011 is as follows:

• Revenue is expected to be down seasonally 3 to 5 percent from the first quarter.
• GAAP gross margin is expected to increase to 46 to 47 percent.
• GAAP operating expenses are expected to be flat.
• Tax rate of 12 to 14 percent, assuming a renewal of the U.S. R&D tax credit. Otherwise, tax rate of 14 to 16 percent.

First Quarter Fiscal 2011 Highlights:

• NVIDIA launched and shipped the GeForce GTX 480 and GeForce GTX 470, the first GPUs based on the company's Fermi architecture.
• The first phones using NVIDIA's Tegra processors shipped, the KIN ONE and KIN TWO from Microsoft.
• NVIDIA launched major new stereo 3D technologies, including NVIDIA 3DTV Play and the Quadro Digital Video Pipeline. Epic Games announced that it had incorporated 3D Vision into its popular Unreal Engine 3 game engine.
• CUDA registered another major success: Adobe started shipping Creative Suite 5 in April. This version of Adobe Premiere Pro exclusively uses CUDA to accelerate the new Adobe Mercury Playback Engine, which allows real-time previews for multi-layer projects.
• NVIDIA began shipments of the GeForce 320M integrated chipset to Apple for incorporation into the latest 13-inch MacBook Pro. The 320M delivers up to an 80 percent performance increase over the previous GeForce 9400M GPU. In addition, the new 15- and 17-inch MacBook Pro both come standard with the new GeForce GT 330M.

CFO Commentary
Commentary on the quarter by David White, NVIDIA chief financial officer and executive vice president, is available [URL=http://www.nvidia.com/investor[/URL].

[DaedalusHelios]

It is a fairly accurate prediction TBH. World economies are getting better as a whole (aside from Greece and a few others) so the estimate makes good sense. But AMD and Intel should be enjoying more revenue then too. It won't be an increase in market share I'd assume, although maybe it will be.

[Imsochobo]

Originally Posted by DaedalusHelios

It is a fairly accurate prediction TBH. World economies are getting better as a whole (aside from Greece and a few others) so the estimate makes good sense. But AMD and Intel should be enjoying more revenue then too. It won't be an increase in market share I'd assume, although maybe it will be.

Nvidia have lost market share.

Amd grew 100%
Nvidia grew somewhat 30-40%

Meaning amd won marketshare ( this is shipment)

still incredible how they are able to keep marketshare when i cant see a nvidia card in stores! :P

[poldo]

^ its the OEMs that are keeping them afloat (probably).

[DaedalusHelios]

Originally Posted by Imsochobo

Nvidia have lost market share.

Amd grew 100%
Nvidia grew somewhat 30-40%

Meaning amd won marketshare ( this is shipment)

still incredible how they are able to keep marketshare when i cant see a nvidia card in stores! :P

I was referring to the predictions. We aren't in 2011 yet.

[Benetanegia]

Originally Posted by Imsochobo

still incredible how they are able to keep marketshare when i cant see a nvidia card in stores! :P

http://www.xbitlabs.com/news/video/d...of_Nvidia.html

Nvidia has shipped a few hundred thousand Fermi GPUs and considering it's been just a month since release, that's quite a bit. For comparison, AMD released a few dozen thousands of Cypress in the first month and 300000 by Christmas times. Maybe it looks like there's not many Fermi cards out there because demand is high, but there's far more Fermi cards in the shops than there were Cypress cards, at least here in Spain.

[Imsochobo]

Originally Posted by Benetanegia

http://www.xbitlabs.com/news/video/d...of_Nvidia.html

Nvidia has shipped a few hundred thousand Fermi GPUs and considering it's been just a month since release, that's quite a bit. For comparison, AMD released a few dozen thousands of Cypress in the first month and 300000 by Christmas times. Maybe it looks like there's not many Fermi cards out there because demand is high, but there's far more Fermi cards in the shops than there were Cypress cards, at least here in Spain.

There have been a shipment of 200 fermi cards to the biggest etailer in norway, as far as i know, not 50 have been sold yet.

[Benetanegia]

Originally Posted by Imsochobo

There have been a shipment of 200 fermi cards to the biggest etailer in norway, as far as i know, not 50 have been sold yet.

That might be in Norway, here in Spain I saw a similar shipment on a not so big etailer and they lasted minutes. It seems to be similar in Newegg, so they are selling.

It doesn't matter how many have been sold anyway, if they are on etailers hands those cards have already been shipped and Nvidia has taken the money already. The fact that a single etailer was able to take 200 cards in a market as small as Norway already confirms the high number of global shipments anayway.

[DaedalusHelios]

Originally Posted by Imsochobo

There have been a shipment of 200 fermi cards to the biggest etailer in norway, as far as i know, not 50 have been sold yet.

Norway is not a big tech market. It is a great place and one of my favorite countries though.

Even if Nvidia was banned from selling products in Norway it most likely wouldn't effect them much if any.

[Mr McC]

Originally Posted by Benetanegia

http://www.xbitlabs.com/news/video/d...of_Nvidia.html

Nvidia has shipped a few hundred thousand Fermi GPUs and considering it's been just a month since release, that's quite a bit. For comparison, AMD released a few dozen thousands of Cypress in the first month and 300000 by Christmas times. Maybe it looks like there's not many Fermi cards out there because demand is high, but there's far more Fermi cards in the shops than there were Cypress cards, at least here in Spain.

Where in Spain? When I bought my card last week Fermi cards were only available as pre-orders in Alternate, Coolmod, PCcomponentes and Paratupc. Where do you shop?

Edit: I just checked Alternate, most of the cards are now available within 3 to 4 days and a few within 24 hours, although there is still an 8 to 10 day waiting list for certain brands. This was not the case only a week ago.

http://www.alternate.es/html/categor...3=GeForce+GTX&

[Benetanegia]

Originally Posted by Mr McC

Where in Spain? When I bought my card last week Fermi cards were only available as pre-orders in Alternate, Coolmod, PCcomponentes and Paratupc. Where do you shop?

Edit: I just checked Alternate, most of the cards are now available within 3 to 4 days and a few within 24 hours, although there is still an 8 to 10 day waiting list for certain brands. This was not the case only a week ago.

http://www.alternate.es/html/categor...3=GeForce+GTX&

I use to shop in Alternate, App and Pixmania mostly. Sometimes PCBox and other retailers. Both Alternate and PCBox have gone very low on my shopping list. Prices are far worse than they used to be and so is availability.

The shipment I was talking about happened in App. It was a shipment of, I suppose, 200 Point of View 470s. By the time I saw it, there were 187 cards and almost none few minutes after. If you enter their page now they have 30 available, but that must belong to another shipment, price is different*. The only problem with App is that they work with big shipments from only the best bidder. Sometimes that means good prices and availability from brands such as EVGA, Asus, XFX and sometimes means they ony have POV, as is the case now. It's usually just a matter of waiting for your desired brand to take its turn though.

*They never change the price until they get another shipment and sometimes that leads to funny situations. For example, if you enter their page now, they have two listings for POV 480, one with 10 cards at 506 € and one woth 2 cards at 516 € . 3 years ago I bought a 8800GT for 200 € because of that reason. They had 2 listings for the same card one at 200 and one for 250 which was probably the correct price, considering every other 8800GT was selling for that. I went to the shop to take the card on hand that time and when they asked me for 250, I said "No I want the other one, the one for 200."

[HalfAHertz]

Originally Posted by Benetanegia

http://www.xbitlabs.com/news/video/d...of_Nvidia.html

Nvidia has shipped a few hundred thousand Fermi GPUs and considering it's been just a month since release, that's quite a bit. For comparison, AMD released a few dozen thousands of Cypress in the first month and 300000 by Christmas times. Maybe it looks like there's not many Fermi cards out there because demand is high, but there's far more Fermi cards in the shops than there were Cypress cards, at least here in Spain.

I totally believe their claim. It seems 100% legitimate. The only problem is, they forgot to mention is that 2/3 of those shipments were defective chips that couldn't be harvested and were instead converted to keychains.

Behold: The power of Fermi in the palm of your hand!

NVIDIA - Collect them all!

Take that Ati

[Benetanegia]

Originally Posted by HalfAHertz

I totally believe their claim. It seems 100% legitimate. The only problem is, they forgot to mention is that 2/3 of those shipments were defective chips that couldn't be harvested and were instead converted to keychains.

Behold: The power of Fermi in the palm of your hand!
http://www.s2999.com/images/nvidia_chip_keychain.jpg
NVIDIA - Collect them all!

Take that Ati

Haha funny.

The shipments can only be true though and I've been saying that for a long long time. The one thing that we do know with almost certainty is that Nvidia made a first order of 9000 waffers. At around 100 candidates per waffer that's 900.000 total candidates. Even at the rather unrealistically low 20% yields that some "journalists" reported that would be almost 200.000 chips, not the reported 10.000. It can only be hundred thousands.

[cadaveca]

I'm really tempted to go to the investor meeting...I'd really like to see Jen-Hsun in person and talk to him about these results. I'm really curious as to how they are going to deal with the current market.

[HalfAHertz]

Originally Posted by cadaveca

I'm really tempted to go to the investor meeting...I'd really like to see Jen-Hsun in person and talk to him about these results. I'm really curious as to how they are going to deal with the current market.

Yes, I'm pretty sure they'll welcome you with hot coffee and cookies
Jen Hsun is famous for his openness and hospitality, right?

[vaperstylz]

Originally Posted by Imsochobo

Nvidia have lost market share.

Amd grew 100%
Nvidia grew somewhat 30-40%

Meaning amd won marketshare ( this is shipment)

still incredible how they are able to keep marketshare when i cant see a nvidia card in stores! :P

Computer Hardware,Video Cards & Video Devices,Desk...

Newegg has plenty of Fermi stock. So much for no cards in stores at least those of us in the US can seem to find them pretty readily.

[DaedalusHelios]

Originally Posted by cadaveca

I'm really tempted to go to the investor meeting...I'd really like to see Jen-Hsun in person and talk to him about these results. I'm really curious as to how they are going to deal with the current market.

Only if you are a stock holder, member of the press, or somewhere associated with using them as a supplier etc. Otherwise you would be wasting a trip.

Originally Posted by HalfAHertz

Yes, I'm pretty sure they'll welcome you with hot coffee and cookies
Jen Hsun is famous for his openness and hospitality, right?

Hsun thinks he can handle PR but he is inept in that department. But I am sure he is great talking to other people in and around his business or they wouldn't have hired him.

[cadaveca]

Originally Posted by HalfAHertz

Yes, I'm pretty sure they'll welcome you with hot coffee and cookies
Jen Hsun is famous for his openness and hospitality, right?

Originally Posted by DaedalusHelios

Only if you are a stock holder, member of the press, or somewhere associated with using them as a supplier etc. Otherwise you would be wasting a trip.

LOL. Don't worry, I already have an invite. I usually do. But really, no invite needed. That's where the REAL PR takes place...not the marketing crap we usually see focused on enthusiasts and gamers.

The event details are as follows:

When:
Wednesday, May 19, 2010

Agenda:
8:30 AM - Registration & Continental Breakfast
9:00 AM - 10:15 AM: - Presentations
10:15AM - 11:00AM - Product Demonstrations
.

FYI, events like this are usually also webcast. You guys should check 'em out some time....

[btarunr]

Many Thanks to DaedalusHelios for drawing those graphs.

[LAN_deRf_HA]

AMD needs more focus on the mobile market and getting deals with manufacturers if they really want a slice of the pie.. the highend market is nearly irrelevant for making money. Nvidia could have skipped fermi and their pockets wouldn't have been any worse for wear.

[DaJMasta]

Originally Posted by btarunr

Many Thanks to DaedalusHelios for drawing those graphs.

I don't mean to whine but those middle two are extremely misleading. If you're showing negative numbers on a bar graph it should be a bar extending down from the zero line, just as bar graphs showing positive figures have a bar extending up. When you're talking about money and a break even point being 0, having it start from a negative figure instead makes negative figures look positive and positive figures look extremely large. If it was a graph made by nVidia, I would say the same except add that it's an extremely shady marketing practice.

[DaedalusHelios]

Originally Posted by DaJMasta

I don't mean to whine but those middle two are extremely misleading. If you're showing negative numbers on a bar graph it should be a bar extending down from the zero line, just as bar graphs showing positive figures have a bar extending up. When you're talking about money and a break even point being 0, having it start from a negative figure instead makes negative figures look positive and positive figures look extremely large. If it was a graph made by nVidia, I would say the same except add that it's an extremely shady marketing practice.

Well you have to decide where to put the base of the horizontal axis. Here I made this for you. This is that method implemented DaJMasta. I just don't think it helps to explain the trend which is the goal of what a market projection is.

http://img.techpowerup.org/100514/pershare.jpg

http://img.techpowerup.org/100514/netIncome.jpg

But if you would like the Excel document to play with I can email it to you so you can. I just believe a visual aid is a nice thing to have around beside the raw data. I think you are quite literally focusing on the negative which shows forth in your criticism. Once again it is a market prediction made by Nvidia that is what the focus of the article is. The focus of the article was not that they failed to be profitable for one of the quarters which would have been explained with a news article 6 months ago and so on.

You may prefer this look as far as more emphasis on the 0 figure on the axis:

http://img.techpowerup.org/100514/NINvidia877.jpg

http://img.techpowerup.org/100514/IPSNvidia.jpg

By the way if those other chart styles are preferred by the news staff I can always email the versions without watermarks, but I think it is rather unneeded TBH.

[remixedcat]

due to the harsh times people are spending money elsewhere and trying to pay off thier mortgages or prepare for doom and gloom. I'm saving up to decorate and remodel my new house. I have an 8800GT and I'm fine with it. I'd rather live in a nicer place and have ok gear then have nice gear and live in a dump.

priorities have changed.

[DaedalusHelios]

Originally Posted by remixedcat

due to the harsh times people are spending money elsewhere and trying to pay off thier mortgages or prepare for doom and gloom. I'm saving up to decorate and remodel my new house. I have an 8800GT and I'm fine with it. I'd rather live in a nicer place and have ok gear then have nice gear and live in a dump.

priorities have changed.

That is a smart move as you are investing in something that is appreciating rather than depreciating in value.

[remixedcat]

yepperz Love the avatar too

I got 3 rooms done since december and I'm proud of my office!