Saved by Geforce and automotive segments
Nvidia has reported its financial results for second quarter of the fiscal 2016 year with revenue of US $1.153 billion, which is up by five percent compared to the last year and pretty much the same as in the last quarter.
While most analysts suggested that Nvidia might suffer a decline in revenue, it appears that strong Geforce sales as well as the automotive industry managed to push the revenue up.
The gross margin in the second quarter was 55 percent, which is 1.1 percent lower compared to the last year. Operating expenses were at US $558 million which is up by 22 percent compared to the last year and up by 17 percent compared to the last quarter, pulling Nvidia's net income down to US $26 million, or around 80 percent lower compared to the last year and the last quarter.
According to Nvidia's report, the strong demand for Geforce GTX GPUs and the new Geforce GTX 980 Ti GPU was pretty much what pulled Nvidia out and the company claims that it is currently working with more than 50 companies that will use the Nvidia Drive PX platforms for its autonomous driving efforts and that over 8 million cars on the road is powered by Nvidia technology.
In details, GPU sales ended up at US $959 million, which is two percent more than in the last quarter and up by nine percent compared to the last year. The company's enterprise graphics and visualization segment reported a drop of 14 percent compared to the last year and its Quadro GPU business reported a drop of 14 percent. Tegra also did not do well as it dropped by 12 percent compared to the last quarter and 19 percent compared to the last year. Same thing happened with HPC and Cloud segment which reported a drop of 15 percent.
On the other hand, the automotive segment reported a rise in revenue of 76 percent compared to the last year.
Nvidia expects a revenue of US $1.18 billion in the next quarter and Q4 should be quite good for Nvidia. It is also left to be seen if the automotive segment will continue to provide positive earnings for Nvidia.
Source: Nvidia.com.
While most analysts suggested that Nvidia might suffer a decline in revenue, it appears that strong Geforce sales as well as the automotive industry managed to push the revenue up.
The gross margin in the second quarter was 55 percent, which is 1.1 percent lower compared to the last year. Operating expenses were at US $558 million which is up by 22 percent compared to the last year and up by 17 percent compared to the last quarter, pulling Nvidia's net income down to US $26 million, or around 80 percent lower compared to the last year and the last quarter.
According to Nvidia's report, the strong demand for Geforce GTX GPUs and the new Geforce GTX 980 Ti GPU was pretty much what pulled Nvidia out and the company claims that it is currently working with more than 50 companies that will use the Nvidia Drive PX platforms for its autonomous driving efforts and that over 8 million cars on the road is powered by Nvidia technology.
In details, GPU sales ended up at US $959 million, which is two percent more than in the last quarter and up by nine percent compared to the last year. The company's enterprise graphics and visualization segment reported a drop of 14 percent compared to the last year and its Quadro GPU business reported a drop of 14 percent. Tegra also did not do well as it dropped by 12 percent compared to the last quarter and 19 percent compared to the last year. Same thing happened with HPC and Cloud segment which reported a drop of 15 percent.
On the other hand, the automotive segment reported a rise in revenue of 76 percent compared to the last year.
Nvidia expects a revenue of US $1.18 billion in the next quarter and Q4 should be quite good for Nvidia. It is also left to be seen if the automotive segment will continue to provide positive earnings for Nvidia.
Source: Nvidia.com.
News by Luca Rocchi and Marc Büchel - German Translation by Paul Görnhardt - Italian Translation by Francesco Daghini
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