Nvidia says Android tablets have arrived
8/9/2012 7:37 PM EDT
28-nm supply contraints remain
Despite the strong quarterly report, Nvidia executives said the company continues to be challenged by constrained supply of 28-nm capacity at foundry vendor Taiwan Semiconductor Manufacturing Co. (TSMC). Huang said Nvidia expects supply constraints to continue through the third quarter. "We have no idea how much business we left on the table" due to the supply constraints, Huang said.
Nvidia (Santa Clara, Calif.) reported sales of $1.04 billion for the quarter ended July 29, up 13 percent from the previous quarter and up 3 percent from the same period of 2011. The company reported a net income in accordance with generally accepted accounting principles (GAAP) of $119 million, up 97 percent from the previous quarter, but down 21 percent from the year-ago quarter.
Nvidia's second quarter sales exceeded consensus analysts' expectations of about $1.01 billion, according to Yahoo Finance. Nivida's non-GAAP net income for the second quarter, $170.4 million or 27 cents per diluted share, also exceed analysts' expectations of about 14 cents per share, according to Yahoo Finance.
Nvidia said its consumer graphics processing unit business—including desktop, notebook, memory, and license revenue from the company's patent cross license agreement with Intel—increased 15 percent sequentially to reach $668.3 million. Revenue from the company's consumer products business increased 35.5 percent sequentially to $179.7 million, Nvidia said, mostly due to record revenue from Tegra applications processors.
Revenue from Nvidia's professional solutions business—including workstation graphics and computing chips—declined by 7.7 percent to $196.3 million, Nvidia said. Sales of the company's Quadro workstation chips remained steady in the U.S. and the Asia-Pacific region, but experienced softness in demand in Europe on continued weak economic conditions, the company said.
For the fiscal third quarter, which closes in October, Nvidia said it expects sales to increase to between $1.15 billion and $1.25 billion, up 11 to 20 percent compared to the second quarter. The company's target for the quarter exceeded consensus analysts' expectations, which called for third quarter sales of about $1.09 billion, according to Yahoo Finance.