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Nvidia's 1Q results exceed analysts' forecast

Posted: 17 May 2011 ?? ?Print Version ?Bookmark and Share

Keywords:Nvidia's fiscal first quarter results? Tegra mobile applications processor? Tegra core graphics processor businesses?

Defying analysts' expectations, Nvidia Corp. presented on May 12 its financial results for the quarter ended May1. The graphics chipmaker's CEO attributed its remarkable performance to strong sales of the Tegra mobile applications processor during the quarter.

Nvidia reported sales for the quarter of $962 million, up 8.5 percent from the previous quarter and down 4 percent from the year-ago quarter. The company reported a net income in accordance with GAAP of $135.2 million, or 22 cents per diluted share, down from $171.7 million in the prior quarter and down from $137.6 million in the year-ago quarter.

The previous quarter's GAAP net income included a $57 million credit to operating expenses related to the legal settlement in connection with a new licensing agreement with Intel Corp., Nvidia said.

On a non-GAAP basis, excluding charges, first quarter net income was $165.7 million, or 27 cents per diluted share, Nvidia said, up from $142.4 million in the previous quarter but down from $169 million in the year-ago quarter.

Nvidia's fiscal first quarter results came in above consensus analysts' expectations, which called for the company to report sales of about $947 million and a non-GAAP net income of 19 cents per share, according to Yahoo Finance.

GAAP gross margin was 50.4 percent, a third consecutive record, compared with 48.1 percent in the previous quarter and 45.6 percent in the same period a year earlier, Nvidia said. Non-GAAP gross margin was 50.6 percent, compared with 48.3 percent in the prior quarter and 45.7 percent in the same period a year earlier, the company added.

Jen-Hsun Huang, Nvidia president and CEO, said in a statement that the company's core graphics processor businesses are solid, with growing sales and margins. "And this quarter, our Tegra mobile business took off," he said.

Huang said the combination of Tegra and wireless communications processors from Icera Inc.a company Nvidia agreed to acquire on May 10 for $367 millionwill supply customers "two most important processors of the mobile computing revolution." Huang said Nvidia expects to close the Icera acquisition shortly.

- Dylan McGrath
??EE Times

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