Nvidia sees profits tumble — despite its Kepler success
Nvidia is on a high after a successful Kepler GPU launch but its financials paint a very different picture. The firm’s first quarter of its 2012 fiscal year yielded revenue of $924.9m, just under four per cent lower than the same period a year previously, however its net income took a beating as profits fell by 55 per cent to $60.4m.
Jen-Hsun Huang, president and CEO of Nvidia sang the praises of Kepler claiming it had received “some of the best reviews” ever given to the firm’s products. Huang also said, “Tegra is on a growth track again, driven by great mobile device wins and the upcoming Windows on ARM launch.”
Nvidia’s steep drop in profits was due to slightly lower revenues and increased operating expenses, a combination that would hurt any company’s bottom line. Although Huang was keen to mention Kepler, the truth is that Nvidia’s latest GPU came out far too late in the quarter to make any real difference.
Although Nvidia launched its high-end Geforce GTX 670 video card yesterday, the firm really needs to cascade Kepler down to the mainstream as fast as possible. Nvidia holds the performance crown thanks to the single-GPU Geforce GTX 680 and dual-GPU Geforce GTX 690, but AMD, with a full range of 28nm parts serving high-volume and enthusiast markets, is sitting more comfortably.
Nvidia, however, is expected to show up to next week’s GPU Technology Conference with a few new products that should bring some cheer to the firm’s fans, and maybe later, its accountants too.