The company reported better-than-expected fiscal fourth-quarter earnings and revenue as graphics chip sales climbed. February 12, 2014 2:03 PM PST Nvidia signage at CES 2014 (Credit: James Martin/CNET) Nvidia can always count on the gamers. The Santa Clara, Calif., graphics chip maker on Wednesday posted fiscal fourth-quarter revenue and earnings there were better than analysts had expected. Nvidia also projected revenue of about $1.05 billion in the current period, higher than the $1 billion Wall Street anticipates. A big reason for its better-than-anticipated results was strong sales of high-end graphics processors to gamers. "Quarterly revenue came in well above our outlook, driven by PC gaming, capping an outstanding year for our GPU business," CEO Jen-Hsun Huang said in a press release. Related stories Torvalds gives Nvidia software thumbs up, not middle finger Nvidia K1 chip sees the open road See the Nvidia K1 in action at CES 2014 Nvidia unveils Tegra K1 graphics chip Nvidia at CES 2014: Join us at 8 p.m. PT Sunday (live blog) The company reported that its GPU revenue totaled $947 million, up 14 percent from the year-earlier period. Graphics sales were particularly strong for desktop PCs, the company said, with its GeForce GTX GPU sales jumping nearly 50 percent. Notebook GPU sales declined slightly, in line with the overall market decline for notebooks. Nvidia is traditionally known for making graphics processing units, or GPUs, found in computers and game consoles, but that business faces an uncertain future as the PC market struggles. Last year, PC shipments posted their worst ever drop. Nvidia has been counting on its Tegra mobile chips to help offset weakness in its core PC market, but so far it hasn't been enough. Its presence in smartphones has been minimal, and it also has been losing share in tablets to rival Qualcomm. Tegra benefited from strong demand in the automotive sector during the fourth quarter. Sales rose about 18 percent sequentially, but the revenue of $131 million was still down 37 percent from the same period a year ago. Nvidia said the Tegra business declined because of weaker volumes of Tegra 4 versus volumes of Tegra 3 last year. While the company's results were better than expected in the period that ended Jan. 26, its net income posted a 16 percent drop to $146.9 million, or 25 cents a share. A year ago, Nvidia's net income totaled $173.97 million, or 28 cents a share. Analysts had expected earnings of 18 cents. Revenue, meanwhile, rose 3.4 percent to $1.14 billion. Nvidia in November had projected sales of $1.05 billion, plus or minus 2 percent.
The company reported better-than-expected fiscal fourth-quarter earnings and revenue as graphics chip sales climbed.
Nvidia signage at CES 2014
(Credit: James Martin/CNET)
Nvidia can always count on the gamers.
The Santa Clara, Calif., graphics chip maker on Wednesday posted fiscal fourth-quarter revenue and earnings there were better than analysts had expected. Nvidia also projected revenue of about $1.05 billion in the current period, higher than the $1 billion Wall Street anticipates.
A big reason for its better-than-anticipated results was strong sales of high-end graphics processors to gamers.
"Quarterly revenue came in well above our outlook, driven by PC gaming, capping an outstanding year for our GPU business," CEO Jen-Hsun Huang said in a press release.
Related stories
- Torvalds gives Nvidia software thumbs up, not middle finger
- Nvidia K1 chip sees the open road
- See the Nvidia K1 in action at CES 2014
- Nvidia unveils Tegra K1 graphics chip
- Nvidia at CES 2014: Join us at 8 p.m. PT Sunday (live blog)
The company reported that its GPU revenue totaled $947 million, up 14 percent from the year-earlier period. Graphics sales were particularly strong for desktop PCs, the company said, with its GeForce GTX GPU sales jumping nearly 50 percent. Notebook GPU sales declined slightly, in line with the overall market decline for notebooks.
Nvidia is traditionally known for making graphics processing units, or GPUs, found in computers and game consoles, but that business faces an uncertain future as the PC market struggles. Last year, PC shipments posted their worst ever drop.
Nvidia has been counting on its Tegra mobile chips to help offset weakness in its core PC market, but so far it hasn't been enough. Its presence in smartphones has been minimal, and it also has been losing share in tablets to rival Qualcomm.
Tegra benefited from strong demand in the automotive sector during the fourth quarter. Sales rose about 18 percent sequentially, but the revenue of $131 million was still down 37 percent from the same period a year ago. Nvidia said the Tegra business declined because of weaker volumes of Tegra 4 versus volumes of Tegra 3 last year.
While the company's results were better than expected in the period that ended Jan. 26, its net income posted a 16 percent drop to $146.9 million, or 25 cents a share. A year ago, Nvidia's net income totaled $173.97 million, or 28 cents a share. Analysts had expected earnings of 18 cents.
Revenue, meanwhile, rose 3.4 percent to $1.14 billion. Nvidia in November had projected sales of $1.05 billion, plus or minus 2 percent.
