Nvidia eyes lower quarterly revenue, starts dividend
SAN FRANCISCO (Reuters) - Nvidia forecast quarterly revenue below expectations and also initiated a quarterly dividend as the graphics chipmaker pushes further into a growing tablet market to offset weak PC demand.
With PC sales suffering from economic uncertainty and a growing consumer preference for tablets, Nvidia has staked its future on leveraging its graphics expertise to make high-performance processors for mobile devices.
Nvidia has made inroads in tablets but competition from larger rival Qualcomm has Wall Street concerned the company may struggle to keep its mobile business growing fast.
The company said it was initiating a quarterly dividend of 7.5 cents a share.
The Santa Clara, California, chipmaker reported third-quarter revenue of $1.204 billion, up from $1.066 billion in the year-ago quarter.
It said revenue in the current quarter would be between $1.025 billion and $1.175 billion.
Analysts were expecting revenue of $1.193 billion for the quarter ended in October and $1.206 billion for the quarter ending in January, according to Thomson Reuters I/B/E/S.
Third-quarter net income was $209 million, or 33 cents a share, up from $178 million, or 29 cents a share in the same quarter last year.
Non-GAAP earnings per share were 39 cents.
Shares of Nvidia rose 0.63 percent in extended trade after closing up 0.56 percent at $12.68 on Nasdaq.
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