) reported first-quarter fiscal 2014 adjusted earnings per share
of 14 cents, exceeding the Zacks Consensus Estimate of 11
The company reported total revenue of $954.7 million in the
quarter, up 3.2% from $924.9 million in the year-ago quarter.
Revenues remained at the higher end of the company's outlook.
Revenues generated by the company's gaming GPUs moved up 24.0%
year over year. A single GPU product, GTX Titan, launched three
months ago and sold at a retail price of $1,000 witnessed a high
demand during the reported quarter.
On the other hand, the revenues generated from consumer PC
declined roughly 15.0% over the same time period. The company's
investments in new products have paid off well for the
Gross margin, on a GAAP basis, was 54.3% versus 50.1% in the
year-ago quarter. Efficient cost management, change in sales mix
of high-margin products and the higher sales value of the GPUs
sold, resulted in a better gross margin.
GAAP operating expenses in the quarter stood at $435.8
million, up 11.6% from $390.5 million in the previous
The company reported net income of $77.9 million or 13 cents
per share on a GAAP basis, compared with $60.4 million or 10
cents a share in the year-ago quarter. Excluding one-time items
but including stock-based compensation expenses, adjusted net
income was 14 cents per share, compared with 11 cents per share
in the year-ago quarter. The company generated $175.6 million
cash from operating activities, up from $451.1 million in the
Balance Sheet & Cash Flow
The company exited the quarter with cash, cash equivalents and
marketable securities of $3.71 billion, down from
$3.73 billion in the previous quarter. Inventories during
the quarter were $377.6 million, down from $419.7 million in the
previous quarter. Free cash flow for the quarter stood at $109.9
million, down from $403.2 million in the previous quarter.
NVIDIA also declared its next quarterly cash dividend of 7
cents per share, which will be paid on Jun 14, 2013.
For the second quarter of 2014, the company expects revenues
to move up by 2.0% sequentially. Moreover, NVIDIA expects the GPU
business to perform better than that of the Tegra processor
segment. NVIDIA is expected to generate lower volume for Tegra 4,
in the second quarter.
NVIDIA delivered decent first-quarter results, with EPS above
the Zacks consensus estimate and revenues higher revenues
compared to the year-ago quarter. The company witnessed a modest
improvement in the GPU business, while the performances of the PC
business and the Tegra processor segment were disappointing.
On the other hand, NVIDIA's performance may be slightly
hampered by the economic slowdown in Europe. Moreover, advanced
chips developed by
Advanced Micro Devices Inc.
) may increase competition for the company.
NVIDIA Corp. carries a Zacks Rank #3 (Hold).
Investors can consider another stock,
), carrying a Zacks Rank #2 (Buy).
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