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Friday, 10 August 2012 07:38

Nvidia posts stronger than expected quarter

Written by Peter Scott



Tegra sales save the day


After a relatively disappointing first quarter, Nvidia has released its second quarter results and they are a bit better than expected.

The company reported earnings of $119 million, EPS of 19 cents and $1.04 billion of revenue. Non-GAAP earnings were 27 cents a share. The figures are a vast improvement over Q1, which saw Nvidia post just $60.4 million of income on $924 million of revenues.

The success is largely attributed to the company’s mobile business, or Tegra chips in layman terms. Nvidia managed to score several design wins in the tablet and smartphone space, most notably Google’s hot Nexus 7 tablet. Looking forward, Nvidia chips will power Microsoft’s Surface and other Windows RT tablets, while Kai value tablets are also on the way.

As for Nvidia’s core business, it has seen better days. Although the company managed to score Kepler design wins in the notebook space, the GPU market on the whole was described as “weak.”

Peter Scott

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