Nvidia reported a revenue of $843.9 million for the third quarter of fiscal 2011. A seasonal pick up in sales saw revenues jump by 4 percent over Q3, but the figures are still 6.6 percent lower compared to the same quarter last year.

However, the company posted a GAAP net income of $84.9 million, a good improvement over the $141 million loss posted in the previous quarter. Gross margins also increased to 46.5 percent from 16.6 percent sequentially.

Nvidia struggled maintain its market share throughout the first half of 2010, due to a lack of competitive products, but the introduction of successful designs such as the GF104 seems to have had a positive effect.

"We have turned the corner... We have restored our speed of execution and are regaining share in desktops," Jen-Hsun Huang, NVIDIA's president and chief executive officer. "The Fermi architecture is now in every segment of our desktop, notebook and workstation product lines. We've also made big strides this quarter in positioning ourselves at the center of cloud and mobile computing, which are transforming the computer landscape."

Nvidia's outlook is somewhat more positive than in recent quarters, but it's still far from impressive. The company expects to see a 3 to 5 percent revenue increase in the coming quarter and gross margin will stay flat.