* PC gaming-related products boost 4th-quarter revenue
* Projects 1st-qtr rev of $1.05 bln, plus/minus 2 pct
* Shares up 3 pct after-hours
By Malathi Nayak and Noel Randewich
SAN FRANCISCO, Feb 12 Nvidia Corp on
Wednesday posted higher fourth-quarter revenue that beat
expectations, fueled by the graphics chipmaker's PC gaming
components, even as it grapples with an expansion beyond
computers and into mobile devices.
With the personal computer industry losing steam, Nvidia has
expanded its graphics chips into mobile devices. But it is
meeting stiff competition from larger Qualcomm Inc and
has responded by increasing its focus on automotive markets and
Nvidia's results in the fourth quarter, which ended in
January, reflected better-than-expected sales of high-end
graphics chips popular with game enthusiasts, a niche that has
suffered less than mainstream laptops from consumers' growing
preferences for tablets. The company's revenue forecast for the
first quarter was also above analysts' expectations.
"The graphics market has been fairly resilient, even in the
face of poor PC sales," said Evercore analyst Patrick Wang.
"Folks still buy graphics cards to play games."
Nvidia has struggled to convince manufacturers to use its
Tegra chips in tablets and smartphones. In the fourth quarter,
revenue from Nvidia's Tegra mobile chip business fell 37 percent
while revenue from its PC graphics processor business rose 14
The company is increasingly marketing the Tegra line of
chips as ideal for powering entertainment and navigation systems
in cars. In January, Nvidia said it was broadening its
relationship with Audi, which plans to use the
upcoming Tegra K1 chip in more of its cars.
Nvidia said that during the quarter, it had lower sales of
Tegra chips for smartphones and tablets while increasing its
sales of Tegra chips for cars.
Overall fourth-quarter revenue rose to $1.14 billion, up 3
percent from the year-ago period. It said revenue in the first
quarter would be $1.05 billion, plus or minus 2 percent.
Analysts on average had expected fourth-quarter revenue of
$1.053 billion and first-quarter revenue of $1 billion,
according to Thomson Reuters I/B/E/S.
Net income was $147 million, or 25 cents a share, in the
fourth quarter ended on Jan. 26, compared with $174 million or
28 cents a share in the year-ago quarter. Non-GAAP earnings per
share in the fourth quarter were 32 cents.
Nvidia shares were up 3 percent in extended trading on
Wednesday after closing up 3.6 percent at $16.83 on the Nasdaq.