CHIP DESIGNER Nvidia has almost doubled its second quarter profits from the same quarter last year to $119m as Tegra sales grow.
Nvidia's second fiscal quarter highlighted the firm's growing Tegra business with revenue and more importantly, profits rising steeply. The firm revealed revenue of $1.04bn, a 13 per cent increase from the same period last year, while profits shot up to $119m, a 97 per cent increase from last year.
Clearly Nvidia's growth in profits is impressive but the fact that it managed to translate almost half of the $120m increase in revenue it generated in this year's second quarter into profits shows that the firm is reining in expenses.
Nvidia has recently made some high profile production wins, including placing its Tegra system-on-chip in both Google's Nexus 7 and Microsoft's Surface tablets. The firm's Kepler GPU has also been well received, and while the firm hasn't filtered its latest GPU architecture down to high volume mainstream parts just yet, that doesn't seem to have hurt Nvidia's bottom line.
Jen-Hsun Huang, president and CEO of Nvidia said, "Our investments in mobile computing and visual computing are both paying off. Tegra has achieved record sales as tablets come into their own. Our GPU business made strong gains in a weak market, boosted by our breakthrough Kepler architecture. Looking ahead, we're optimistic, as our investments position us right at the center of the fastest growing segments of computing."
While Huang mentioned Kepler, it is clear that the company will need to push its Tegra business harder than ever if it is to achieve significant growth. Nevertheless, Nvidia is clearly reaping the rewards of abandoning its pursuit of an x86 license from Intel and becoming an ARM chip licensee. µ