Thursday, February 18th 2016

NVIDIA Announces Financial Results for the Fourth Quarter and Fiscal 2016

NVIDIA (NASDAQ: NVDA) today reported record revenue for the fourth quarter ended January 31, 2016, of $1.40 billion, up 12 percent from $1.25 billion a year earlier, and up 7 percent from $1.30 billion in the previous quarter. Revenue for fiscal 2016 was a record $5.01 billion, up 7 percent from $4.68 billion a year earlier. GAAP earnings per diluted share for the quarter were $0.35, inclusive of a restructuring charge of $0.04 per diluted share. Non-GAAP earnings per diluted share were $0.52, up 21 percent from $0.43 a year earlier and up 13 percent from $0.46 in the previous quarter.

GAAP earnings per diluted share for the full year were $1.08, inclusive of restructuring charges of $0.15 per diluted share. Non-GAAP earnings per diluted share were $1.67, up 18 percent from $1.42 a year earlier. "We had another record quarter, capping a record year," said Jen-Hsun Huang, co-founder and chief executive officer, NVIDIA. "Our strategy is to create specialized accelerated computing platforms for large growth markets that demand the 10x boost in performance we offer. Each platform leverages our focused investment in building the world's most advanced GPU technology.
"NVIDIA is at the center of four exciting growth opportunities -- PC gaming, VR, deep learning, and self-driving cars. We are especially excited about deep learning, a breakthrough in artificial intelligence algorithms that takes advantage of our GPU's ability to process data simultaneously. "Deep learning is a new computing model that teaches computers to find patterns and make predictions, extracting powerful insights from massive quantities of data. We are working with thousands of companies that are applying the power of deep learning in fields ranging from life sciences and financial services to the Internet of Things," he said.

Capital Return
During the fourth quarter, NVIDIA paid $62 million in cash dividends and received 4.3 million shares in connection with an accelerated share repurchase agreement that it had entered into in the quarter. During fiscal 2016, the company returned to shareholders $800 million in quarterly cash dividends and share repurchases. For fiscal 2017, NVIDIA intends to return approximately $1.0 billion to shareholders through ongoing quarterly cash dividends and share repurchases. NVIDIA will pay its next quarterly cash dividend of $0.115 per share on March 23, 2016, to all shareholders of record on March 2, 2016.

NVIDIA's outlook for the first quarter of fiscal 2017 is as follows:
  • Revenue is expected to be $1.26 billion, plus or minus two percent.
  • GAAP and non-GAAP gross margins are expected to be 57.2 percent and 57.5 percent, respectively, plus or minus 50 basis points.
  • GAAP operating expenses are expected to be approximately $500 million. Non-GAAP operating expenses are expected to be approximately $445 million.
  • GAAP and non-GAAP tax rates for the first quarter of fiscal 2017 are both expected to be 19 percent, plus or minus one percent.
  • Capital expenditures are expected to be approximately $35 million to $45 million.
Fourth Quarter Fiscal 2016 Highlights
During the fourth quarter, NVIDIA achieved progress in each of its platforms.

Gaming:
  • Announced the GeForce GTX VR Ready program -- in conjunction with PC companies, notebook makers and add-in card providers - to help users discover systems that will provide great virtual reality experiences.
  • Released NVIDIA GameWorks VR, a software development kit for developers of VR software and headsets for gaming.
Professional Visualization:
  • Rolled out NVIDIA Iray plugins for Autodesk Maya and Autodesk 3ds Max, which enable users of these applications to create designs incorporating real-world lights and materials faster and more easily than before.
  • Released NVIDIA DesignWorks VR, a software development kit for developers of VR software and headsets for enterprise.
Datacenter:
  • Introduced an end-to-end hyperscale datacenter deep learning platform -- consisting of two accelerators, the NVIDIA Tesla M40 and NVIDIA Tesla M4 -- that lets web-services companies accelerate deep learning workloads.
Revealed new breakthroughs from leading web-services groups using NVIDIA GPUs:
  • Facebook is using the NVIDIA Tesla accelerated computing platform to power Big Sur, its next-generation computing system for machine learning applications.
  • Alibaba's AliCloud cloud computing business is working with NVIDIA to promote China's first GPU-accelerated, cloud-based, high performance computing platform.
  • IBM is adding support for NVIDIA GPU accelerators to its Watson cognitive computing platform.
  • Google is open-sourcing its TensorFlow deep-learning framework, which can be accelerated on GPUs.
  • Microsoft's Computational Network Toolkit was integrated with Azure GPU Lab, enabling neural nets for speech recognition that are up to 10x faster than their predecessors.
Auto:
  • Launched NVIDIA DRIVE PX 2, a powerful engine for in-vehicle artificial intelligence.
  • Announced that Volvo will use DRIVE PX 2 to power a fleet of 100 Volvo XC90 SUVs that will appear on the road next year in the car manufacturer's Drive Me autonomous-car pilot program.
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15 Comments on NVIDIA Announces Financial Results for the Fourth Quarter and Fiscal 2016

#1
Fluffmeister
Extremely impressive results.... again.

I suspect Charlie Demerjian is crying into his Cornflakes right now.
Posted on Reply
#2
HumanSmoke
Fluffmeister
Extremely impressive results.... again.

I suspect Charlie Demerjian is crying into his Cornflakes right now.

And Jen-Hsun is probably sending over a complementary bottle of milk for Charlie's continued reverse jinx :laugh:
Posted on Reply
#3
RejZoR
These are gonna be some salty cornflakes...
Posted on Reply
#4
john_
Good news for the PCs, looking at the income from graphics cards, in a period where everyone is saying PCs are dead.
Posted on Reply
#5
Kurt Maverick
Althought impartial because I'm gonna change my rig this Fall, I kinda like Nvidia, so good :)
Posted on Reply
#6
rtwjunkie
PC Gaming Enthusiast
john_
Good news for the PCs, looking at the income from graphics cards, in a period where everyone is saying PCs are dead.
You do make a good point! Regardless of whether anyone likes Green or Red, or goes back and forth, news like this should be looked at in the larger context.

It means that despite generic, pre-built PC's going down in numbers bit by bit, there is still a huge market of people upgrading said PC's, to get longer life from them, as well as a huge market of enthusiasts either building their own PC or buying custom-built boutique.

All of these use aftermarket GPU's, so it is a strong indicator that the PC as a whole is still alive and well.
Posted on Reply
#7
yogurt_21
even with losing out on several markets the past few years (consoles, tegra mobile chips, etc) they are completely unfazed. Yet AMD who successfully entered new markets the past few years is still bleeding. Amazing what a good CEO/management team can do.
Posted on Reply
#8
rtwjunkie
PC Gaming Enthusiast
yogurt_21
even with losing out on several markets the past few years (consoles, tegra mobile chips, etc) they are completely unfazed. Yet AMD who successfully entered new markets the past few years is still bleeding. Amazing what a good CEO/management team can do.
To be fair tho, AMD's Radeon is profitable. They are what is keeping AMD from bleeding even faster.
Posted on Reply
#10
LemmingOverlord
Usually looking into the Financial presentation (or listening to a call recording on a Financial Analyst day) reveals a lot more about the company than just their performance the past year. Like someone said, it's good to see the PC upgrade market alive and kicking.

Unfortunately, the Nvidia investor site has been down since I read this article. :(
Posted on Reply
#11
Kurt Maverick
john_
Good news for the PCs, looking at the income from graphics cards, in a period where everyone is saying PCs are dead.
Only ignorant peasants say that, and it's mere wishful thinking, when the cruel reality is that PC gaming is living it's 2nd Golden Era :D
Posted on Reply
#12
Assimilator
HumanSmoke
And Jen-Hsun is probably sending over a complementary bottle of milk for Charlie's continued reverse jinx :laugh:

Best. Graph. Ever. F'n SAVED.
Posted on Reply
#13
nem
but NVIDIA is selling like waffes his gpus this debunks the myth that many were waiting for 14nm, plus the strange thing that the entire industry is in poor condition including Intel and other major brands, is that Nvidia did get out of the field the ball as usual .. what a great marketing NVIDIA.. :B
Posted on Reply
#14
LemmingOverlord
Interesting how that webcast turned out (in terms of Jen H'sun's view on a number of matters, including Qualcomm & Samsung)... not much in the way of "news" this time, but Jen H'sun always has something quoteworthy in there.
Posted on Reply
#15
Divide Overflow
I'm not fond of many of nVidia's business practices, but they sure know how to make a buck!
Posted on Reply
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