updated 06:53 pm EDT, Thu May 9, 2013
Chip manufacturer expects to return to growth by end of fiscal year
Graphic card producer Nvidia today reported revenue for the first quarter of the company's fiscal 2014, which ended April 28. The company report income of $954.7 million, down 13.7 percent from $1.11 billion in the fourth quarter of fiscal 2013. The company posted a $77.9 million profit, with earnings per share of $0.13, down 53.6 percent from $0.28 in the prior quarter. The results beat Wall Street expectations for the quarter, and the company expects to return to growth later in the year, on the strength of the margins on the Kepler GPU chipset and the release of the Tegra 4 system-on-a-chip.
"The success of Kepler-based GPUs within and beyond the PC helped drive another quarter of record margins," said Jen-Hsun Huang, president and chief executive officer of Nvidia. "Kepler is capturing share among gamers, strengthening our workstation and supercomputing segments, and will fuel new growth opportunities for our GRID server graphics solutions. With Tegra 4 devices and Tegra 4i certification on the way, we're gearing up to return to growth in the second half."
NVIDIA plans to return in excess of $1 billion this fiscal year to shareholders in the form of share repurchases and quarterly dividend payments. During the first quarter, Nvidia returned $146.3 million to shareholders by repurchasing $100 million of shares, and paying the rest in dividends, or $0.075 per share.
As part of Nvidia's previously announced capital return program, the company plans to continue its quarterly dividend program at $0.075 per share and to return additional cash of at least $750 million during fiscal 2014, largely through a structured share repurchase program.
The second quarter of fiscal 2014 is expected to see revenue climb to $975 million, with margins remaining the same at 54.3 percent. Capital expenditures are expected to be in the range of $65 to $75 million.