Nvidia posts solid earnings, but Tegra proves to be a blight
Revenue for Tegra unit down 71 percent year-over-year while the company’s overall revenue declined by 19 percent during the same period.
Nvidia is not immune to the slowdown in the PC sector.
The GPU maker announced that for its fiscal year that wrapped up on July 28, it brought in a profit of $96.4 million on revenue of $977.2 million. This is down from a profit of $119 million on $1.044 billion of revenues from the same quarter last year.
Nvidia says its gross margin expanded from 51.8 percent to 55.8 percent.
For investors, the highlight of Nvidia’s earnings report was no doubt its GPU division. This is the division that makes up 87 percent of Nvidia’s revenues, it’s the company’s bread and butter. The company reported earnings in this division were up 7.5 percent year-over-year and 9.3 percent quarter-over-quarter to $858.6 million.
As expected, Tegra’s earnings were a sharp contrast to the overall solid earnings report of the company.
Nvidia reported Tegra’s earnings to be $52.6 million this quarter, down 71 percent year-over-year and 49 percent compared to last quarter.
Nvidia chalked the loss up to Tegra 3’s inability to get off the ground.
“These decreases were largely due to lower unit shipments of Tegra 3 processors as customers ramped down production of Tegra 3-based smartphones and tablets,” Nvidia’s CFO, Karen Burns, said during the earnings call. “They also reflect lower revenue associated with the sale of embedded products and game consoles, offset by increased revenue from automotive products.”
Burns also said she was “disappointed with the size of the decline” of Tegra.
For the upcoming quarter, Nvidia is projecting revenue of $1.05 billion.