By Noel Randewich
SAN FRANCISCO May 9 Graphics chipmaker Nvidia
posted better-than expected results for the first
quarter including record gross margins, despite a slowing PC
industry, sending its share higher.
With PC sales losing ground to tablets, Nvidia is betting on
its graphics expertise to make high-performance processors for
Nvidia had a record GAAP gross margin of 54.3 percent and
non-GAAP gross margin of 54.6 percent in the quarter. It said
current-quarter gross margins would be about the same.
"Gross margins are moving up, we think partly due to
(Nvidia's) higher exposure to workstations and servers - higher
priced and higher value devices," said Stifel Nicolaus analyst
The Santa Clara, California, chipmaker reported
first-quarter revenue rose to $954.7 million on Thursday, from
$924.9 million in the year-ago quarter.
It said revenue in the current quarter would be $975
million, plus or minus 2 percent.
Analysts were expecting revenue of $941 million for the
quarter ended in April and $1.0 billion for the quarter ending
in July, according to Thomson Reuters I/B/E/S.
First-quarter net income was $77.9 million, or 13 cents a
share, compared to $60.4 million, or 10 cents a share, in the
same quarter last year. Analysts on average expected earnings
per share of 10 cents.
Shares of Nvidia rose about 1 percent in extended trade
after closing up 0.08 percent at $13.91.