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NVIDIA reports Q4 2012 earnings: annual revenue up 12.8 percent, net income doubles

Tim Stevens
Contributor
Updated ·6 min read

If you thought we were done with the numbers game, think again. NVIDIA has just pushed out its figures for Q4 of FY 2012 and things are looking good. Revenue for the quarter was $953 million, a 10.6 percent decline over Q3, but if you look over the entire year revenue increased 12.8 percent over fiscal 2011. Net income, too, was down compared to Q3, but looking annually, when compared to 2011 income more than doubled, from 253 million to 581. CEO Jen-Hsun Huang was predictably pleased with the outcome, saying: "We expect continued growth ahead, as Tegra 3 powers a new wave of quad-core super phones and Kepler, our next-generation GPU architecture, sets new standards in visual and parallel computing." We're expecting plenty of great devices too -- the Transformer Prime TF700T in particular.




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NVIDIA Reports Financial Results for Annual and Fourth Quarter Fiscal 2012

SANTA CLARA, CA -- (Marketwire) -- 02/15/2012 -- NVIDIA (NASDAQ: NVDA)

Revenue for the year increased 12.8 percent over fiscal 2011 to $4.00 billion.
GAAP gross margin for the year was 51.4 percent, up 11.6 percentage points; non-GAAP gross margin was 51.9 percent, up 6.8 percentage points.
GAAP EPS for the year rose 118.6 percent; non-GAAP EPS rose 46.9 percent.
Quarterly revenue decreased 10.6 percent to $953.2 million from $1.07 billion in the previous quarter.
GAAP gross margin was 51.4 percent for the quarter; non-GAAP gross margin was 52.5 percent.
Quarterly GAAP EPS were $0.19, down from $0.29 in the previous quarter; non-GAAP EPS were $0.26, down from $0.35 in the previous quarter.
NVIDIA (NASDAQ: NVDA) today reported revenue for fiscal 2012 ended Jan. 29, 2012 of $4.00 billion, up 12.8 percent from $3.54 billion in fiscal 2011. GAAP earnings per share for the year were $0.94 per diluted share, an increase of 118.6 percent over $0.43 in fiscal 2011. Non-GAAP earnings per share for fiscal 2012 were $1.19, up 46.9 percent over $0.81 in fiscal 2011.

Revenue for the fourth quarter of fiscal 2012 was $953.2 million, down 10.6 percent from the prior quarter, and up 7.5 percent from $886.4 million in the same period a year earlier.

"I am pleased with our achievements last year. Our GPU business grew sharply. And, with the success of Tegra, we established our position in the mobile market," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "We expect continued growth ahead, as Tegra 3 powers a new wave of quad-core super phones and Kepler, our next-generation GPU architecture, sets new standards in visual and parallel computing."


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Annual Highlights
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(in millions except per FY12 FY11 FY12 FY11
share data) GAAP GAAP NON-GAAP NON-GAAP
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Revenue $3,997.9 $3,543.3 $3,997.9 $3,543.3
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Gross margin 51.4% 39.8% 51.9% 45.1%
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Operating expenses $1,408.2 $1,153.3 $1,245.7 $1,096.4
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Net income $581.1 $253.1 $734.4 $476.4
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Earnings per share $0.94 $0.43 $1.19 $0.81
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Quarterly Highlights
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(in millions except per Q4 FY12 Q3 FY12 Q4 FY12 Q3 FY12
share data) GAAP GAAP NON-GAAP NON-GAAP
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Revenue $953.2 $1,066.2 $953.2 $1,066.2
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Gross margin 51.4% 52.2% 52.5% 52.5%
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Operating expenses $367.7 $359.6 $325.2 $317.6
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Net income $116.0 $178.3 $158.1 $217.0
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Earnings per share $0.19 $0.29 $0.26 $0.35
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On a GAAP basis, the company recorded net income of $116.0 million, or $0.19 per diluted share, for the fourth quarter of fiscal 2012. That compares with net income of $178.3 million, or $0.29 per diluted share, in the prior quarter and $171.7 million, or $0.29 per diluted share, in the same period a year earlier.

On a non-GAAP basis -- which excludes certain charges or credits, as applicable in the fiscal quarter, and the tax impact associated with such items, including: stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, and legal settlements -- net income was $158.1 million, or $0.26 per diluted share. That compares with non-GAAP net income of $217.0 million, or $0.35 per diluted share, in the prior quarter, and net income of $142.4 million, $0.24 per share, in the same period a year earlier.

GAAP gross margin was 51.4 percent, compared with 52.2 percent in the previous quarter and 48.1 percent in the same period a year earlier. Non-GAAP gross margin, which excludes stock-based compensation and a legal settlement charge, was 52.5 percent and compares with 52.5 percent in the previous quarter and 48.3 percent in the same period a year earlier.

Outlook

Our outlook for the first quarter of fiscal 2013, is as follows:

Revenue is expected to be between $900 million and $930 million.

GAAP gross margins are expected to be 49.2 percent, plus or minus 1 percentage point; non-GAAP gross margins are expected to be 49.5 percent, plus or minus 1 percentage point.

GAAP operating expenses are expected to be approximately $383 million; non-GAAP operating expenses are expected to be approximately $340 million.

GAAP and non-GAAP tax rates are expected to be approximately 20 percent for the fiscal year 2013; and approximately 16 percent for the year, if the research tax credit is reinstated into U.S. tax law. Our annual projected tax rates reflect our expectation for the quarter, excluding any discrete tax events that may occur, which, if realized, may increase or decrease our GAAP and non-GAAP tax rates.
We estimate depreciation and amortization for the first quarter to be approximately $52 million to $56 million. Capital expenditures are expected to be in the range of $35 to $45 million.

Diluted shares for the first quarter are expected to be approximately 622.5 million.

Fourth Quarter Fiscal 2012 Highlights:

NVIDIA's Tegra 3® processors started shipping to consumers in the Asus Transformer Prime tablet. The tablet is the first to run Android 4.0, "Ice Cream Sandwich." Asus also announced a $249 tablet to be based on Tegra 3.

Other Tegra 3 devices announced in the quarter include:

Asus Transformer Prime TF700T, similar to the Prime, but with a 1920x1200 resolution display.
Acer Iconia Tab A700, also with a 1920x1200 display.
Lenovo IdeaPad K2, again with a 1920x1200 display.
Fujitsu announced an unnamed Android phone, running Android 4.0 "Ice Cream Sandwich."

NVIDIA announced NVIDIA Maximus™ technology, which increases productivity by enabling design and simulation to be accelerated on a single workstation.