Nvidia exceeded Wall Street expectations for April-June quarter
Chip-maker Nvidia recently reported its earnings for the April-June quarter; with the figures posted by the company surpassing Wall Street expectations. The company's quarterly performance was notably strong in its desktop, workstation, and particularly server businesses; though its Tegra business witnessed a disquieting plunge.
According to the figures reported by Nvidia, the company's profit during the second quarter was $96.4 million, or 16 cents per share; with its quarterly revenue being $977.2 million. Despite the fact that Nvidia's profit and revenue figures dropped 19 percent and 6.4 percent respectively year-on-year, the figures still managed to exceed Wall Street's lowered estimates.
The earnings' estimates for Nvidia had apparently been lowered by analysts because the company had already warned that its Tegra 4 processors will not arrive in the markets on schedule.
The company had said in April that it had adjusted its Tegra mobile chip schedule in an attempt to bring in the Tegra 4i mobile chip which also integrates LTE baseband technology. The move resulted in a $52.6 million drop in Nvidia's Tegra revenue during the quarter.
Meanwhile, noting that Nvidia's "GPU business continued to grow" and helped the company in reporting "fourth consecutive quarter of record margins," Jen-Hsun Huang - Nvidia's president and CEO - said that the April-June quarter also witnessed the company commence the shipping of GRID virtualized graphics. Huang also added that Nvidia is hopeful of a "strong second half."