Nvidia Q3 Financial Results

[tviceman]

During the conference call, a financial analyst had the foresight to ask about whether Nvidia is skipping 20nm with GPU.... of course JHH wouldn't answer, but I think that if they were NOT skipping 20nm, then JHH would have been more inclined to say No.

Here it is:

Hans Mosesmann - Raymond James
Congratulations guys. Couple of questions there. On process node migrations, also to Alex question, what’s the roadmap on the GPU side of the equation? Are you going to skip 20 nanometer and go straight to FinFET?

Jen-Hsun Huang - President and CEO
Hans, we haven’t announced our next generation products yet. And so we've got lot of great surprises for you guys and I'm excited about our next generation GPU. But right now we're enjoying ramping Maxwell. This is a brand new product cycle, and I don’t remember our product cycle in our Company’s history where we've had the lead that we have, the richness of applications in the gaming industry that we're ramping into, nor the number of vertical markets that we now serve, from gaming to design to cloud to high-performance computing, that we now serve that we're ramping this architecture into. And so Maxwell is unquestionably at this point a home run and we're just savoring the moment and ramping the living daylights out of it.

 

[positivedoppler]

It wouldn't make a whole lot of sense for Nvidia to do 20 nm if they're moving to 16nm in 2016.

 

[AnandThenMan]

I guess its the end of Intel integrated HD graphics then.

Or

Intel will sign another cross license agreement.

If anyone is really questioning, it is pretty much guaranteed there will be a new agreement. Or Intel will have to start completely over with their igp. Start from scratch, build an entirely new graphics line that doesn't infringe on nvidia patents. Or they could license tech from another company. AMD? No way.

Intel already has a cross license agreement with AMD for the GPU stuff (not sure when it expires). Intel will have to renew agreements between AMD and Nvidia they can't pick and chose. Also recall that the NV/Intel settlement was actually about Nvidia being prohibited from making motherboard chipsets for Intel processors, the cross license stuff was tossed in by Nvidia to sweeten the pot.

 

[Arachnotronic]

Anyone found a pre-division breakdown of the results yet? I can only find the ones for the company as a whole. Curious whether Tegra is profitable yet.

Wait for the form 10-Q filing. NVIDIA usually breaks down revenue and operating profit by division, AFAIK.

However, to answer your question about Tegra profitability, according to the last 10-Q, the division lost $54.5 million on $158 million in revenue. I would imagine that the loss narrowed a bit this quarter due to revenue growth, but it's probably still losing money.

Source (page 23): http://files.shareholder.com/downloads/AMDA-1XAJD4/3612300736x0xS1045810-14-158/1045810/filing.pdf

 

[HurleyBird]

Intel already has a cross license agreement with AMD for the GPU stuff (not sure when it expires).

I wouldn't be surprised if this got lumped in for free with their x86 stuff in return for letting AMD outsource x86 chip production. In any case, these agreements are held close to the chest and it's not like random people on forums can say anything with any amount of authority on the matter. Anyone who claims otherwise is probably pushing an agenda.

 

[Arachnotronic]

Anyone who claims otherwise is probably pushing an agenda.

http://www.amd.com/Documents/AMD_Intel_Settlement_Agreement_-_Full.pdf

 

[HurleyBird]

http://www.amd.com/Documents/AMD_Intel_Settlement_Agreement_-_Full.pdf

I stand corrected on the GF thing. To make things more clear, by "agreements" I'm referring to things like the Nvidia-Intel and/or AMD-Intel x86 cross liscense agreements as a whole. That document is a very small part of the picture, and judging by a quick glance it looks like Intel was required to make it available by law.

 

[sm625]

Check out this quote from their Nov 2007 press release:

For the third quarter of fiscal 2008, revenue increased to a record $1.12 billion compared to $820.6 million for the third quarter of fiscal 2007, an increase of 36 percent.

For the nine months ended October 28, 2007, revenue increased to a record $2.90 billion compared to $2.19 billion for the nine months ended October 29, 2006, an increase of 32 percent.

Those numbers arent too far off from this quarter. Yet back in '07 NVDA was trading a good 50% higher. lol.

Here is some more added perspective:

SANTA CLARA, CA—NOVEMBER 9, 2006—NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2007 ended October 29, 2006.

For the third quarter of fiscal 2007, revenue increased to a record $820.6 million, compared to $583.4 million for the third quarter of fiscal 2006, an increase of 41 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2007 was $106.5 million, or $0.27 per diluted share. GAAP net income for the third quarter of fiscal 2007 includes expenses of $42.6 million, net of tax, which is comprised primarily of stock-based compensation expense plus a one-time charge associated with licensing certain patents.

Non-GAAP net income for the third quarter of fiscal 2007, which excludes SFAS 123R and other stock-based compensation charges and the related tax impact, was $149.2 million, or $0.39 per diluted share.

For the second quarter of fiscal 2007 ended July 30, 2006, previously reported revenue was $687.5 million. GAAP net income for the second quarter of fiscal 2007 was $86.8 million, or $0.22 per diluted share. GAAP net income for the second quarter of fiscal 2007 includes stock-based compensation expense net of tax of $25.3 million.

This was a year earlier, when NVDA was trading pretty much where it is now.