Nvidia posted its Q2 figures and the numbers looks pretty promising despite the seasonal downturn in desktop GPU shipments and a weaker than expected showing in the Tegra market.
The company reported $151.6 million earnings, or 25 cents a share, while non-GAAP net income was $193.5 million, with 32 cents per share and revenue of $1.02 billion. The figures are largely in line with Wall Street’s expectations, but Nvidia shares dipped Friday despite the positive report. Console royalties and Intel licensing revenues made up a significant chunk of Nvidia's Q2 earnings, but both of these revenue sources will dwindle in the future.
Analysts see less than impressive figures in the Tegra business as a reason for concern in the long run. Although Nvidia is touting Tegra as the next big thing in its product portfolio, sales are still low relative to other market segments and growth has been slow for months.
"Investors just assumed the product was going to ramp of its own accord. In fact, Nvidia is really beholden to its (manufacturing) customers," said MKM Partners analyst Daniel Berenbaum. Berenbaum pinned the blame on the management, saying that Tegra ramp plans did not appear realistic.
In spite of Tegra issues, Nvidia remains upbeat and the company hopes to post stronger results in Q3, with revenue in the $1.06 and $1.08 billion range.
More here.
Tegra business remains flat despite the hype
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