NVIDIA CORP Quarterly Report for Q1 Ended Apr 27, 2014

Summary

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 billion, 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 million in stock through an accelerated share repurchase program and paying out dividends, signaling confidence in its financial position and future outlook.

Key Highlights

• 1Revenue increased by 15.5% year-over-year to $1.10 billion, driven by strong performance in both GPU and Tegra segments.
• 2Net income more than doubled to $136.5 million, with diluted EPS rising to $0.24 from $0.13 in the prior year.
• 3GPU business revenue grew 14.2% due to strong demand for high-end desktop and notebook GPUs.
• 4Tegra Processor business revenue surged by 35.2%, led by automotive and embedded applications.
• 5Gross margin improved slightly to 54.8% from 54.3% year-over-year.
• 6The company returned $500 million to shareholders via an accelerated share repurchase program and paid dividends.

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