10-QPeriod: Q3 FY2013

NVIDIA CORP Quarterly Report for Q3 Ended Oct 28, 2012

Filed November 19, 2012For Securities:NVDA

Summary

NVIDIA Corporation's (NVDA) third quarter fiscal year 2013 filing on November 19, 2012, reported a robust increase in revenue, reaching $1.20 billion, 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 million 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 billion in cash, cash equivalents, and marketable securities.

Financial Highlights

54 data points
Beta

Revenue

$1.20B

52.9% Gross Margin

Net Income

$209.08M

17.4% Net Margin

EPS (Diluted)

$0.01

Total Assets

$6.08B

Cash & Equivalents

$525.39M

Free Cash Flow

$136.80M

Financial Statements
Beta
Revenue$1.20B
Cost of Revenue$567.45M
Gross Profit$636.66M
R&D Expenses$284.18M
SG&A Expenses$100.26M
Operating Expenses$384.44M
Operating Income$252.22M
Net Income$209.08M
EPS (Basic)$0.01
EPS (Diluted)$0.01
Shares Outstanding (Basic)24.89B
Shares Outstanding (Diluted)25.15B

Key Highlights

  • 1Revenue 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.
  • 2GPU business revenue grew 14.7% year-over-year, supported by high-end Kepler products and notebook design wins.
  • 3Consumer Products Business (CPB) revenue surged 27.6%, primarily due to increased sales of Tegra 3-based devices.
  • 4Diluted 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.
  • 5The effective tax rate increased to 17.6% from 13.0% due to the expiration of the U.S. federal research tax credit.
  • 6NVIDIA announced the initiation of a quarterly cash dividend program, with the first dividend of $0.075 per share to be paid in December 2012.
  • 7The company maintained a strong liquidity position with $3.43 billion in cash, cash equivalents, and marketable securities as of October 28, 2012.

Frequently Asked Questions

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).

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.

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.

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.