Summary
NVIDIA Corporation reported revenue of $924.9 million for the first quarter of fiscal year 2013, a decrease of 3.9% compared to $962.0 million in the prior year. This decline was primarily driven by a 9.1% decrease in the GPU business, attributed to supply shortages of their new Kepler architecture and a shift to lower-margin mainstream products, along with a decrease in media and communications processor sales. Despite the overall revenue dip, the Professional Solutions Business (PSB) saw a 5.4% increase, and the Consumer Products Business (CPB) grew by 8.1%, driven by embedded entertainment products and anticipated growth in Tegra 3 products. Operating expenses increased significantly due to higher R&D spending, up 22.6%, driven by headcount growth and development for new technologies like Kepler. Net income decreased to $60.4 million from $135.2 million in the prior year, resulting in a diluted EPS of $0.10 compared to $0.22. The company maintained a strong liquidity position with $3.13 billion in cash, cash equivalents, and marketable securities. NVIDIA's strategic focus remains on new product development, including the Kepler architecture and Tegra processors, alongside managing supply chain constraints and competitive pressures.
Financial Highlights
54 data points| Revenue | $924.88M |
| Cost of Revenue | $461.51M |
| Gross Profit | $463.36M |
| R&D Expenses | $283.90M |
| SG&A Expenses | $106.64M |
| Operating Expenses | $390.54M |
| Operating Income | $72.83M |
| Net Income | $60.44M |
| EPS (Basic) | $0.00 |
| EPS (Diluted) | $0.00 |
| Shares Outstanding (Basic) | 24.63B |
| Shares Outstanding (Diluted) | 24.95B |
Key Highlights
- 1Revenue decreased by 3.9% year-over-year to $924.9 million, primarily due to softness in the GPU segment.
- 2Research and Development (R&D) expenses increased by 22.6% to $283.9 million, reflecting investments in new technologies like the Kepler architecture.
- 3Net income declined significantly to $60.4 million, from $135.2 million in the prior year, resulting in a diluted EPS of $0.10.
- 4The Professional Solutions Business (PSB) and Consumer Products Business (CPB) showed revenue growth of 5.4% and 8.1% respectively.
- 5The company maintained a robust cash position, with $3.13 billion in cash, cash equivalents, and marketable securities.
- 6The company launched its new Kepler GPU architecture and saw initial shipments of Tegra 3 phones.
- 7Gross margin slightly decreased to 50.1% from 50.4% due to a less favorable product mix in the desktop GPU business.