01—Abstract
Summary
Summary of the 10-Q filed May 21, 2014. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation reported strong financial results for the first quarter of fiscal year 2015, ending April 27, 2014.
Revenue increased by 15.5% year-over-year to $1.10 billiona, driven by robust growth in both the GPU and Tegra Processor businesses. The GPU segment saw a 14.2% increase, fueled by high-end desktop and notebook GPU sales, while the Tegra Processor segment experienced a significant 35.2% surge, primarily from automotive and embedded applications. Net income more than doubled to $136.5 million, resulting in diluted EPS of $0.24, up from $0.13 in the prior year period.
Operationally, gross margin slightly improved to 54.8%, indicating effective cost management and a favorable product mix. Research and development expenses saw a modest 2.2% increase, reflecting continued investment in innovation, while SG&A expenses rose by 9.2%. The company also actively returned capital to shareholders, repurchasing $500 millionb in stock through an accelerated share repurchase program and paying out dividends, signaling confidence in its financial position and future outlook.
02—Key points
Key Highlights
- Revenue increased by 15.5% year-over-year to $1.10 billion, driven by strong performance in both GPU and Tegra segments.
- Net income more than doubled to $136.5 million, with diluted EPS rising to $0.24 from $0.13 in the prior year.
- GPU business revenue grew 14.2% due to strong demand for high-end desktop and notebook GPUs.
- Tegra Processor business revenue surged by 35.2%, led by automotive and embedded applications.
- Gross margin improved slightly to 54.8% from 54.3% year-over-year.
- The company returned $500 million to shareholders via an accelerated share repurchase program and paid dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2015, NVIDIA Corp kept $0.12.
- Revenue$1.10B100.0%
- Cost of revenue−$499.0M45.2%
- Gross profit$604.0M54.8%
- Operating costs−$453.0M41.1%
- Operating income$151.0M13.7%
- Interest, other & tax−$14.0M1.3%
- Net income$137.0M12.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2015filed May 21, 2014Financial Statements
Q1 FY2015 against Q1 FY2014
| Line item | Q1 FY2015Q1 FY2014 | Change |
|---|---|---|
| Revenue | $1.10B$954.74M | +15.5% |
| Cost of Revenue | $499.00M$436.17M | +14.4% |
| Gross Profit | $604.00M$518.57M | +16.5% |
| R&D Expenses | $334.00M$327.16M | +2.1% |
| SG&A Expenses | $119.00M$108.63M | +9.6% |
| Operating Expenses | $453.00M$435.79M | +3.9% |
| Operating Income | $151.00M$82.78M | +82.4% |
| Interest Expense | $11.00M$853K | +1189.6% |
| Net Income | $137.00M$77.89M | +75.9% |
| EPS (Basic) | $0.01$0.00 | +84.6% |
| EPS (Diluted) | $0.01$0.00 | +84.6% |
| Shares Outstanding (Basic) | 22.36B24.67B | −9.4% |
| Shares Outstanding (Diluted) | 22.80B24.77B | −8.0% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth in this quarter?
Revenue growth was primarily driven by strong sales in the GPU business, particularly high-end desktop and notebook GPUs, and a significant increase in the Tegra Processor business, fueled by automotive and embedded applications.
How did NVIDIA's profitability change compared to the previous year?
NVIDIA's profitability saw a substantial improvement. Net income more than doubled to $136.5 million, and diluted earnings per share increased to $0.24 from $0.13 in the same period last year.
What is NVIDIA's strategy regarding capital return to shareholders?
NVIDIA is actively returning capital to shareholders. In this quarter, they executed an accelerated share repurchase program for $500 million and also paid cash dividends, indicating a commitment to shareholder value.
What is the outlook for the Tegra Processor business?
The Tegra Processor business showed very strong growth (35.2%), driven by demand in automotive and embedded sectors. This indicates positive momentum and strategic positioning in these growing markets.
06—Continue