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Nvidia sees profits fall despite steady revenue growth

Needs Tegra 4 devices to appear soon
Thu Feb 14 2013, 11:23
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CHIP DESIGNER Nvidia saw its full year fiscal 2013 revenues rise to $4.2bn but suffered a decline in profits thanks to the rising cost of doing business.

Nvidia, which recently said it is sampling its Tegra 4 system on chip (SoC), had some impressive wins during its 2013 fiscal year, including Google's choice of its Tegra 3 in the Nexus 7 tablet. While that helped the firm post a 7.1 percent increase in revenues to $4.2bn, its profits fell by 3.2 percent to $562.5m.

Nvidia's Tegra 3 also ended up in a number of Windows RT tablets, though given the muted reception Microsoft's own Surface RT received it is unlikely to have helped the firm as much as its Android device design wins. The company also touted its Tesla K20 accelerator, which it launched in the fourth quarter of 2012, though it had already sold Tesla K 20 boards to a number of high profile high performance computing customers previously to make it into the prestigious Top 500 list that was published in November.

Jen-Hsun Huang, president and CEO of Nvidia said, "This year we did the best work in our company's history. We achieved record revenues, margins and cash, despite significant market headwinds.

"We grew our GPU and Tegra Processor businesses. We are sampling production silicon of the Tegra 4 platform which includes our 4G LTE modem. And we created new pillars for long term growth with Project Shield and Nvidia Grid - first-of-their-kind devices that will extend our leadership in visual computing into mobile and the cloud."

With Nvidia rolling out its Kepler architecture throughout its product range in 2012, this year will mostly be about getting its Tegra 4 chip into high profile devices. While the firm has had some success with Tegra 3, the chip is now showing its age and Nvidia will need to show improved graphics performance in Tegra 4 if it is to continue making sales in the competitive SoC market. µ

 

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