Nvidia Corp. on Thursday reported financial results for the second quarter of fiscal 2014, ended July 28, 2013. The company posted a sequential increase in sales, but a decrease year-over-year, mainly because extremely poor results demonstrated by Tegra business unit. Nonetheless, Nvidia can celebrate significant boost in sales of various graphics processing units.
"The GPU business continued to grow, driving our fourth consecutive quarter of record margins. We also began shipping GRID virtualized graphics, which puts the power of Nvidia GPUs into the datacenter. We look forward to a strong second half, with new Tegra 4 devices coming to market, Shield moving beyond the U.S. and broader sampling of project Logan, our next-generation Tegra processor, which brings Kepler, the world's most advanced GPU, to mobile," said Jen-Hsun Huang, president and chief executive officer of Nvidia.
Nvidia’s GPU business had revenue of $858.6 million, up 9.3% sequentially and up 7.5% year over year. These increases reflect strengthening of the company’s GPU business, with gains in desktop, workstation and server, offset by a slight decrease in notebook GPU revenue.
Nvidia no longer provides precise revenue split between consumer and professional products, so it is impossible to reveal how exactly the GeForce-branded solutions performed during the quarter. In desktop, GeForce GPU revenue increased 13.8% sequentially and 3.9% year on year on strong demand and a richer product mix, particularly in high-end price segments, according to Nvidia. Given that the company launched a number of new desktop offerings in the second quarter, the firm could easily gain sales. In notebook GPUs, revenue decreased 3.6% sequentially and 1.7% year on year, due to lower unit shipments.
In workstation, Quadro GPU revenue increased 8.5% sequentially and 14.3% year on year. In server, Tesla GPU revenue increased 25.3% sequentially and 127.5% year on year. The increases in Quadro and Tesla revenue were fueled by our newly introduced Kepler-based products, now offered top-to-bottom for enterprise customers, the company said.
For the quarter, Nvidia posted revenue of $977.2 million, net income of $96.4 million, or $0.16 per diluted share as well as record gross margins of 55.8%.
For the third quarter of fiscal 2014 the company expects revenue of around $1.050 billion