CHIP DESIGNER Nvidia beat third quarter forecasts by announcing revenue of $1.07bn and a profit of $178.3m
Nvidia's third quarter fiscal year 2012 results revealed the firm had a good three months, raking in $1.07bn with gross margin of 52.2 per cent, while net profit came to $178.3m. Those figures stack up very nicely against its third quarter 2011 results, with revenue up over 26 per cent and profit up an impressive 110 per cent while increasing gross margin by almost six per cent.
Nvidia puts the growth down to its GPUs and Tegra system-on-chip (SoC). With the firm pulling out of the high-volume embedded graphics market some thought that Nvidia was taking a big gamble in the SoC market, where it was going up against established players such as Qualcomm and Texas Instruments.
Although Nvidia's Tegra SoC received something of a muted reception, the Tegra 2 was very successful, with the firm being chosen by LG to power what would become the first dual-core smartphone, the LG Optimus 2X. Earlier this week Nvidia launched Tegra 3, its quad-core SoC processor known previously as 'Kal-el'.
Jen-Hsun Huang, president and CEO of Nvidia touched on an improvement in the firm's core GPU business but spent most of his time talking about Tegra, saying, "Our GPU business accelerated in the third quarter, driven by strong demand from gamers and the professional market. And our mobile business benefited from new devices coming onto the market. With Tegra 3 phone wins well ahead of Tegra 2's pace, we're expecting strong growth in the year ahead."
Nvidia said its fourth quarter revenues will be flat, give or take two per cent, from its third quarter.
If Nvidia's device partners flood January's CES with Tegra 3 smartphones and tablets, then there will be little doubt that Nvidia poses a substantial threat to rivals like Qualcomm and Texas Instruments. If that happens, Nvidia's financials could be looking rosy for a fair few quarters. µ
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