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Nvidia shares go down after FY Q1 2012 scores

by on16 May 2011

Almost 11 percent down
Jen Hsun Huang is not so happy about tablet sales and this has definitely affected Nvidia's financial figures. Last week, Nvidia published its fiscal Q1 2012 results and investors were not particularly happy. The end result was that Nvidia traded at $18.26 as of late Friday, which was $2.24 or 10.93 percent down. In after-trade hours, it went further 0.27 percent down to its final $18.21 per share.

Last Thursday night, Nvidia announced that its fiscal Q1 2012 revenue stands at $962 million which is 8.5 percent higher than the $886.4 million it made in fiscal Q4 2011. Still, it is 4 percent down from the $1,001.8 that it made in Q1 of fiscal 2011.

GAAP net income was 135.2 million or 0.22 per diluted share while non GAAP net income was $165.7 billion or 0.27 per diluted share. GAAP gross margin increased to quite nice 50.4 percent which is third consecutive quarterly record. Non GAAP gross margin increased to 50.6 percent. As you can see from above, these numbers failed to impress investors.

Cnet got some cool comments from Nvidia’s CEO, where Jensen speaks about not being happy about the Android app offer, pricing and marketing. In short, he thinks that companies who are shipping Nvidia’s Tegra 2 in tablets did a really lousy job, and we could not agree more. You can check out Cnet's article here.

In its official statement, Nvidia said it is happy to see Tegra 2 phones and tablets finally ship after plenty of delays, and these shipments includes Motorola Atrix 4G, LG Optimus 2X as well as Acer Iconia A500, Asus Eee Pad transformer, Dell Streak, LG Optimus PAD and G-Slate and of course Motorola Xoom.

In addition Sony and Samsung said that Sony S1 and S2 projects as well as Galaxy Tab 10.1 use Tegra 2.  On a more positive note, Nvidia thinks that its acquisition of Icera, a leading innovator of 3G and 4G baseband processors, can do Nvidia good in the future fight with Qualcomm.

Nvidia didn’t forget that it still makes graphics cards, which still rake in the most of the dough. Furthermore, the company was proud to say that the dual-GPU Geforce GTX 590 is the world’s fastest card and that that Geforce GTX 550 TI is “the best entry-level gaming GPU for next generation Intel systems”, which is of course as arguable as it gets.

Nvidia also promises that its second quarter of fiscal 2012 should be better with revenue up 4 to 6 percent from the first quarter. It expects GAAP gross marking expected to be 50.5 to 51.5 and its operating expenses to sit between $332 and $336 million.

Last modified on 16 May 2011
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