Nvidia's profits jump 75 per cent

May 9, 2014 | 09:20

Tags: #financial #financials #geforce #geforce-grid #gpu #jen-hsun-huang #pascal #profit #q1-2015

Companies: #nvidia

Nvidia has released its latest quarterly earnings figures, and they make for good reading if you're a fan or investor in the company: a 75 per cent increase in profits year-on-year, thanks to gains in the high-end graphics and cloud computing markets.

Figures released during the company's quarterly earnings call with press, analysts and investors late last night showed a $1.103 billion revenue for the first quarter of its 2015 financial year. While that's down four per cent quarter-on-quarter, likely as a result of the usual slump that follows the Christmas period, it's an impressive 16 per cent increase year-on-year - and a time when the market for traditional desktop PCs continues to decline, albeit slower than has been the case in previous years.

Revenue means little without profit, however, but Nvidia showed considerable growth here too: $136.5 million in net income for the quarter is an impressive 75 per cent year-on-year growth, albeit again down quarter-on-quarter by seven per cent. Much of this growth, the company claimed, is thanks to increased sales in its highest-end graphics products and an explosion of interest in GeForce GRID, Nvidia's server-side GPU virtualisation product.

'First quarter results benefited from gains in PC gaming and our continued progress in the data centre and cloud,' claimed Jen-Hsun Huang, president and chief executive at Nvidia, of the earnings. 'Nearly 600 enterprises worldwide are now evaluating GRID, our virtual GPU server platform. VMware announced support for GRID to enable GPU-accelerated enterprise virtualisation. And with IBM, Dell and HP now selling our GPUs in their high-volume servers, we expect large-scale data centres to be a significant source of growth.'

The company may be facing problems with its highest-end consumer products, however. German technology site ComputerBase reports that the GeForce GTX Titan Z, unveiled back in March with a planned April launch date, has been pushed back indefinitely with no new release date yet provided by Nvidia.
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