Nvidia First Quarter Fiscal 2018 Financials - Double Profits due to Nintendo Switch
Nvidia published it's financial results of Q1 2017 (in the financial world that is listed as the financial year of 2018 hence the title). They achieved a higher revenue and profit mainly due to the Nintendo Switch (Nvidia fabs the SoC) and data-center activities.
NVIDIA (
GAAP earnings per diluted share for the quarter were $0.79, up 126 percent from $0.35 a year ago and down 20 percent from $0.99 in the previous quarter. Non-GAAP earnings per diluted share were $0.85, up 85 percent from $0.46 a year earlier and down 25 percent from $1.13 in the previous quarter.
"The AI revolution is moving fast and continuing to accelerate," said Jensen Huang, founder and chief executive officer of NVIDIA. "NVIDIA's GPU deep learning platform is the instrument of choice for researchers, internet giants and startups as they invent the future.
"Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and AI, the most important technology force of our time," he said.
Capital Return
For fiscal 2018, NVIDIA intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases. During the first quarter of fiscal 2018, NVIDIA paid $82 million in cash dividends.
NVIDIA will pay its next quarterly cash dividend of $0.14 per share on June 14, 2017, to all shareholders of record on May 23, 2017.
Q1 FY2018 Summary
GAAP | ||||||||||
($ in millions except earnings per share) | Q1 FY18 | Q4 FY17 | Q1 FY17 | Q/Q | Y/Y | |||||
Revenue | $1,937 | $2,173 | $1,305 | down 11% | up 48% | |||||
Gross margin | 59.4% | 60.0% | 57.5% | down 60 bps | up 190 bps | |||||
Operating expenses | $596 | $570 | $506 | up 5% | up 18% | |||||
Operating income | $554 | $733 | $245 | down 24% | up 126% | |||||
Net income | $507 | $655 | $208 | down 23% | up 144% | |||||
Diluted earnings per share | $0.79 | $0.99 | $0.35 | down 20% | up 126% |
Non-GAAP | ||||||||||
($ in millions except earnings per share) | Q1 FY18 | Q4 FY17 | Q1 FY17 | Q/Q | Y/Y | |||||
Revenue | $1,937 | $2,173 | $1,305 | down 11% | up 48% | |||||
Gross margin | 59.6% | 60.2% | 58.6% | down 60 bps | up 100 bps | |||||
Operating expenses | $517 | $498 | $443 | up 4% | up 17% | |||||
Operating income | $637 | $809 | $322 | down 21% | up 98% | |||||
Net income | $533 | $704 | $263 | down 24% | up 103% | |||||
Diluted earnings per share | $0.85 | $1.13 | $0.46 | down 25% | up 85% | |||||
NVIDIA's outlook for the second quarter of fiscal 2018 is as follows:
- Revenue is expected to be $1.95 billion, plus or minus two percent.
- GAAP and non-GAAP gross margins are expected to be 58.4 percent and 58.6 percent, respectively, plus or minus 50 basis points.
- GAAP operating expenses are expected to be approximately $605 million. Non-GAAP operating expenses are expected to be approximately $530 million.
- GAAP other income and expense is expected to be an expense of approximately $8 million, inclusive of additional charges from early conversions of convertible notes. Non-GAAP other income and expense is expected to be an expense of approximately $3 million.
- GAAP and non-GAAP tax rates for the second quarter of fiscal 2018 are both expected to be 17 percent, plus or minus one percent, excluding any discrete items.
- Weighted average shares used in the GAAP and non-GAAP diluted EPS calculations are dependent on the weighted average stock price during the quarter.
- Capital expenditures are expected to be approximately $55 million to $65 million.
First Quarter Fiscal 2018 Highlights
During the first quarter, NVIDIA achieved broad progress.
Gaming:
- Announced GeForce® GTX 1080 Ti, the world's fastest gaming GPU.
- Announced TITAN Xp for enthusiasts and researchers requiring extreme performance.
Datacenter:
- Announced with Microsoft that it is bringing NVIDIA® Tesla® P100 and P40 GPUs to the Azure cloud.
- Announced that NVIDIA Tesla accelerators designed for datacenter AI capabilities were added to Google Cloud, Tencent Cloud,IBM Cloud, and Baidu Cloud.
- Announced that Tokyo Institute of Technology will use NVIDIA's accelerated computing platform to create Japan's fastest AI supercomputer, TSUBAME3.0.
- Announced that Fujitsu is using 24 NVIDIA DGX-1™ AI systems to build a new AI supercomputer for RIKEN, Japan's largest research center.
- Announced together with Facebook the Caffe2 deep learning framework and Big Basin servers with Tesla P100 GPUs.
- Announced plans to train 100,000 developers this year, a 10x increase over 2016, through the NVIDIA Deep Learning Institute.
- Announced NVIDIA Jetson™ TX2, a high-performance, low-power computer platform for delivering AI at the edge, with deep learning and computer vision capabilities for robots, drones and smart cameras.
Automotive:
- Announced with Bosch, the world's largest auto supplier, plans to create a new Bosch-branded AI self-driving car computer.
- Announced a collaboration with PACCAR, one of the world's largest truck makers with brands including Peterbilt, Kenworth and DAF, to develop solutions for autonomous trucks.
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Senior Member
Posts: 6814
Joined: 2006-01-18
Pretty incredible results when you take into account that their core business market is shrinking.
And that's exactly why Nvidia has been a runaway success compared to AMD: Diversification, platforming and support.
Here is an example:
http://nvidianews.nvidia.com/news/nvidia-to-train-100-000-developers-on-deep-learning-in-2017
These are the data scientists that will be working in the major corporations in the coming years, and guess which hardware and software platform they will be familiar with and request? Nvidia.
Nvidia's management deserves high praise for their foresight and their willingness to adapt. Their Tegra program had a good run until around Tegra 3, after which they pretty much had no clients for it. Now instead of what a lot of companies might have done and either closed it and/or sold off the pieces, they turned it around to be their Automotive and Console push, and have reaped the rewards in return instead of the losses. Their diversification into the datacenter also proved to be a runaway success.
And while they might have some of the best hardware around, what really drives their success is their focus on the software platforms surrounding their products.
Senior Member
Posts: 423
Joined: 2010-11-08
Nvidia practically has a monopoly where their Graphic Card prices go up to the Sky. Regarding graphics card market these years, AMD/ATI can't get even close to Nvidia and therefore we have the "Golden Years" of Nvidia all thanks to AMD only.
Senior Member
Posts: 3660
Joined: 2007-05-31
not only, they have near monopole:
-In ProGPU (outside of some Hyped event AMD are always "aviable on demand" or "not aviable" for Pro).
-In car computer (they are the only one now exept some startup...).
Senior Member
Posts: 14092
Joined: 2004-05-16
not only, they have near monopole:
-In ProGPU (outside of some Hyped event AMD are always "aviable on demand" or "not aviable" for Pro).
-In car computer (they are the only one now exept some startup...).
There are multiple companies involved in car computing. Intel being a fairly large one especially now with their purchase of mobileye. Tesla has it's own hardware/software division and while they are currently using Nvidia hardware, they aren't using Nvidia's driving package - they can switch at any point. In fact Elon said that AMD was considered:
This is a Tesla developed neural net. Although it’s somewhat hardware independent, it can be; we can actually run this on Nvidia, AMD or Intel. We did pick the Nvidia titan GPU as the main chip for the neural net. But it was pretty tight call between particularly between AMD and Nvidia. But ultimately we felt that Nvidia had the better hardware.
Senior Member
Posts: 2340
Joined: 2014-10-24
Geez, they just keep getting stronger. Would love to see AMD as strong as that.