Summary
NVIDIA Corporation reported revenue of $1.054 billion for the third quarter of fiscal year 2014, a decrease of 12.5% compared to the same period last year. For the first nine months of fiscal year 2014, revenue was $2.986 billion, down 5.9% year-over-year. This decline was largely driven by a significant 54.4% decrease in the Tegra Processor business revenue, which was anticipated due to lower shipments of Tegra 4-based devices compared to the prior year's Tegra 3 devices. The GPU business, however, showed resilience, with revenue down only 1.9% year-over-year in the third quarter and up 4.2% for the nine-month period, driven by strong demand for Quadro and Tesla products, though desktop and notebook GPU revenue saw slight declines. Net income for the quarter was $118.7 million, or $0.20 per diluted share, a decrease from $209.1 million, or $0.33 per diluted share, in the prior year's third quarter. The company also highlighted its commitment to returning capital to shareholders, having repurchased $850 million in stock and paid $133 million in dividends in the first nine months of fiscal year 2014. Subsequent to the quarter, NVIDIA announced a further increase in its quarterly dividend and an expansion of its share repurchase program. Despite the revenue headwinds, the company continues to invest heavily in R&D, with expenses up 19.7% year-over-year for the quarter, reflecting its focus on developing next-generation Tegra and GPU products.
Financial Highlights
55 data points| Revenue | $1.05B |
| Cost of Revenue | $469.55M |
| Gross Profit | $584.41M |
| R&D Expenses | $340.29M |
| SG&A Expenses | $103.13M |
| Operating Expenses | $443.43M |
| Operating Income | $140.99M |
| Interest Expense | $819K |
| Net Income | $118.73M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.01 |
| Shares Outstanding (Basic) | 23.23B |
| Shares Outstanding (Diluted) | 23.55B |
Key Highlights
- 1Revenue for Q3 FY2014 decreased by 12.5% year-over-year to $1.054 billion, primarily due to a significant decline in the Tegra Processor business.
- 2The GPU business remained relatively stable, with Q3 FY2014 revenue down 1.9% year-over-year, driven by strength in Quadro and Tesla products.
- 3Net income for Q3 FY2014 was $118.7 million, down from $209.1 million in Q3 FY2013, with diluted EPS at $0.20 compared to $0.33.
- 4Research and Development expenses increased by 19.7% year-over-year to $340.3 million in Q3 FY2014, indicating continued investment in future technologies.
- 5The company returned $983 million to shareholders in the first nine months of FY2014 through $850 million in stock repurchases and $133 million in dividends.
- 6As of October 27, 2013, NVIDIA held $3.03 billion in cash, cash equivalents, and marketable securities, a decrease from $3.73 billion at the start of the fiscal year due to share repurchases.
- 7The company has ongoing legal proceedings related to the 3dfx acquisition and product defect litigation, though the product defect litigation has been resolved and affirmed on appeal.