10-QPeriod: Q1 FY2014

NVIDIA CORP Quarterly Report for Q1 Ended Apr 28, 2013

Filed May 22, 2013For Securities:NVDA

Summary

NVIDIA Corporation reported solid financial results for the first quarter of fiscal year 2014, driven by a significant increase in its GPU business segment. Revenue grew by 3.2% year-over-year to $954.7 million, with the GPU business segment showing robust growth of 8.2%. This segment benefited from strong sales of high-end GeForce products and continued traction in Tesla compute solutions. Conversely, the Tegra Processor business experienced a notable decline of 22.2% in revenue, primarily due to the winding down of older processor generations. Despite this, the company's overall profitability improved, with net income increasing to $77.9 million from $60.4 million in the prior year, leading to a higher diluted EPS of $0.13. NVIDIA also demonstrated a commitment to shareholder returns, initiating a quarterly dividend and continuing its share repurchase program, including a significant accelerated share repurchase agreement entered into in May 2013.

Financial Highlights

55 data points
Beta

Revenue

$954.74M

54.3% Gross Margin

Net Income

$77.89M

8.2% Net Margin

EPS (Diluted)

$0.00

Total Assets

$6.28B

Cash & Equivalents

$561.42M

Free Cash Flow

$109.98M

Financial Statements
Beta
Revenue$954.74M
Cost of Revenue$436.17M
Gross Profit$518.57M
R&D Expenses$327.16M
SG&A Expenses$108.63M
Operating Expenses$435.79M
Operating Income$82.78M
Interest Expense$853K
Net Income$77.89M
EPS (Basic)$0.00
EPS (Diluted)$0.00
Shares Outstanding (Basic)24.67B
Shares Outstanding (Diluted)24.77B

Key Highlights

  • 1Revenue increased by 3.2% to $954.7 million compared to the prior year's first quarter.
  • 2The GPU business segment revenue grew by 8.2% to $785.6 million, driven by higher-end products and design wins.
  • 3Tegra Processor business revenue declined by 22.2% to $103.1 million, reflecting a shift away from older processors.
  • 4Net income rose significantly to $77.9 million from $60.4 million in the same period last year.
  • 5Diluted Earnings Per Share (EPS) improved to $0.13 from $0.10 in the prior year.
  • 6The company initiated a quarterly cash dividend of $0.075 per share.
  • 7NVIDIA returned capital to shareholders through $100 million in share repurchases and $46.3 million in dividends during the quarter, and announced a $750 million accelerated share repurchase agreement post-quarter.

Frequently Asked Questions

Revenue growth was primarily driven by an 8.2% increase in the GPU business segment, which benefited from strong sales of high-end GeForce products and continued traction in Tesla compute solutions. The overall revenue increased by 3.2% to $954.7 million.

The Tegra Processor business revenue decreased by 22.2% to $103.1 million. This decline was mainly due to lower sales of older Tegra 2 and Tegra 3 processors as customers phased out products using them. It also reflects reduced revenue from embedded products and game console licenses/royalties.

NVIDIA initiated a quarterly cash dividend of $0.075 per share. In the first quarter of fiscal year 2014, the company repurchased $100 million of its common stock and paid $46.3 million in dividends. Additionally, subsequent to the quarter, on May 14, 2013, NVIDIA entered into an accelerated share repurchase agreement to repurchase $750 million of its common stock.

NVIDIA expects its gross margin for the second quarter of fiscal year 2014 to be relatively consistent with the first quarter of fiscal year 2014, which was 54.3%. The company noted that gross margin can vary depending on product mix.