01—Abstract
Summary
Summary of the 10-Q filed November 19, 2012. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation's (NVDA) third quarter fiscal year 2013 filing on November 19, 2012, reported a robust increase in revenue, reaching $1.20 billiona, up 12.9% year-over-year.
This growth was primarily driven by strong performance in the GPU business, fueled by sales of new Kepler-based products and increased notebook revenue due to design wins. The Consumer Products Business (CPB) also saw significant growth, largely attributed to higher sales of Tegra 3-based devices. Despite revenue growth, net income saw a decline from $178.3 million in the prior year to $209.1 millionb for the current quarter, resulting in a decrease in diluted EPS from $0.29 to $0.33.
This was partly influenced by a higher effective tax rate due to the expiration of the US federal research tax credit. The company also announced the initiation of a quarterly cash dividend program, signaling a commitment to returning value to shareholders. NVIDIA's balance sheet remains strong, with $3.43 billionc in cash, cash equivalents, and marketable securities.
02—Key points
Key Highlights
- Revenue increased by 12.9% to $1.20 billion in Q3 FY2013 compared to $1.07 billion in Q3 FY2012, driven by strong GPU and CPB segments.
- GPU business revenue grew 14.7% year-over-year, supported by high-end Kepler products and notebook design wins.
- Consumer Products Business (CPB) revenue surged 27.6%, primarily due to increased sales of Tegra 3-based devices.
- Diluted net income was $209.1 million ($0.33 per share) for Q3 FY2013, compared to $178.3 million ($0.29 per share) in Q3 FY2012, showing an increase in net income and EPS.
- The effective tax rate increased to 17.6% from 13.0% due to the expiration of the U.S. federal research tax credit.
- NVIDIA announced the initiation of a quarterly cash dividend program, with the first dividend of $0.075 per share to be paid in December 2012.
- The company maintained a strong liquidity position with $3.43 billion in cash, cash equivalents, and marketable securities as of October 28, 2012.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2013, NVIDIA Corp kept $0.17.
- Revenue$1.20B100.0%
- Cost of revenue−$567.5M47.1%
- Gross profit$636.7M52.9%
- Operating costs−$384.4M31.9%
- Operating income$252.2M20.9%
- Interest, other & tax−$43.1M3.6%
- Net income$209.1M17.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2013filed November 19, 2012Financial Statements
Q3 FY2013 against Q3 FY2012
| Line item | Q3 FY2013Q3 FY2012 | Change |
|---|---|---|
| Revenue | $1.20B$1.07B | +12.9% |
| Cost of Revenue | $567.45M$509.46M | +11.4% |
| Gross Profit | $636.66M$556.72M | +14.4% |
| R&D Expenses | $284.18M$256.50M | +10.8% |
| SG&A Expenses | $100.26M$103.13M | −2.8% |
| Operating Expenses | $384.44M$359.63M | +6.9% |
| Operating Income | $252.22M$197.09M | +28.0% |
| Net Income | $209.08M$178.27M | +17.3% |
| EPS (Basic) | $0.01$0.01 | +17.2% |
| EPS (Diluted) | $0.01$0.01 | +13.8% |
| Shares Outstanding (Basic) | 24.89B24.28B | +2.5% |
| Shares Outstanding (Diluted) | 25.15B24.54B | +2.5% |
05—Questions
Frequently Asked Questions
What was NVIDIA's revenue performance in the reported quarter?
NVIDIA reported revenue of $1.20 billion for the third quarter of fiscal year 2013, an increase of 12.9% compared to $1.07 billion in the same period of the prior fiscal year. This growth was driven by strong performance in the GPU business and significant increases in the Consumer Products Business (CPB).
How did NVIDIA's profitability change?
Net income increased to $209.1 million ($0.33 per diluted share) for the third quarter of fiscal year 2013, up from $178.3 million ($0.29 per diluted share) in the prior year's comparable quarter. However, the effective tax rate increased due to the expiration of the U.S. federal research tax credit, which impacted the overall profitability relative to pre-tax income.
What are the key drivers behind the revenue growth?
Revenue growth was primarily fueled by the GPU business, benefiting from the introduction of new Kepler-based products and strong notebook design wins. The Consumer Products Business (CPB) also contributed significantly due to increased sales of Tegra 3-based devices and embedded products for automotive applications.
Did NVIDIA announce any changes to its capital return policy?
Yes, NVIDIA announced on November 8, 2012, the initiation of a quarterly cash dividend program. The initial quarterly dividend is set at $0.075 per share, equating to an annual rate of $0.30 per share, with the first payment expected in December 2012.
06—Continue