Anticipating the conference call tomorrow. Looking forward to hearing their guidance with the rest of the year as well as exactly how much Kepler has sold through. Any info on Tegra 4 would be great too, but I doubt we will hear anything until month or two after the surface launches.

http://www.zdnet.com/nvidias-q2-results ... 000002413/

Beat wall street estimates, GPU and Tegra both strong.

NVIDIA Reports Financial Results for Second Quarter Fiscal Year 2013

Aug 09, 2012 (Marketwire via COMTEX) --NVIDIA (NASDAQ: NVDA)

Revenue of $1.04 billion.
GAAP net income was $119.0 million, or $0.19 per diluted share. Non-GAAP net income was $170.4 million, or $0.27 per diluted share.
GAAP gross margin was 51.8 percent. Non-GAAP gross margin was 52.0 percent.

NVIDIA (NASDAQ: NVDA) today reported revenue of $1.04 billion for the second quarter of fiscal 2013 ended July 29, 2012.

"Our investments in mobile computing and visual computing are both paying off," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Tegra has achieved record sales as tablets come into their own. Our GPU business made strong gains in a weak market, boosted by our breakthrough Kepler architecture. Looking ahead, we're optimistic, as our investments position us right at the center of the fastest growing segments of computing."

(in millions except per
share data) Q2 FY13
GAAP Q1 FY13
GAAP Q2 FY13
NON-GAAP Q1 FY13
NON-GAAP
Revenue $1,044.3 $924.9 $1,044.3 $924.9
Gross margin 51.8% 50.1% 52.0% 50.4%
Operating expenses $401.1 $390.5 $342.5 $348.0
Net income $119.0 $60.4 $170.4 $97.5
Earnings per share $0.19 $0.10 $0.27 $0.16


Outlook

Our outlook for the third quarter of fiscal 2013 is as follows:

Revenue is expected to be between $1.15 billion and $1.25 billion.

GAAP and non-GAAP gross margins are expected to be flat relative to the prior quarter, at 51.8 percent and 52.0 percent, respectively.

GAAP operating expenses are expected to be approximately $390 million; non-GAAP operating expenses are expected to be approximately $350 million.

GAAP and non-GAAP tax rates are expected to be approximately 20 percent, plus or minus one percentage point, excluding any discrete tax events that may occur during the quarter, which, if realized, may increase or decrease our third quarter GAAP and non-GAAP tax rates. If the U.S. research tax credit is reinstated into tax law, we estimate our annual effective tax rate for the fiscal year 2013 to be approximately 16 percent.

We estimate depreciation and amortization for the third quarter to be approximately $57 million to $59 million. Capital expenditures are expected to be in the range of $30 million to $40 million.

Diluted shares for the third quarter are expected to be approximately 630 million.

Second Quarter Fiscal 2013 and Recent Highlights:

Google announced that Tegra 3 powers its Nexus 7 tablet -- a fully-fledged tablet priced at just $199 -- which is the first device to run Jelly Bean, the latest version of Android.

Microsoft announced that Tegra® is the processor powering the company's Surface for Windows RT tablet.

Kepler drove market share gains in the notebook market as OEMs announced Kepler-based notebooks. Among the products announced were new notebooks from Apple, Samsung, Dell, HP, Asus, Acer, Lenovo, and Sony.

At its third annual GPU Technology Conference, NVIDIA launched cloud computing technologies for consumers and enterprise customers, which represent new business opportunities for the company. These leverage original software and new Kepler™ features to deliver virtualized GPUs.


GAAP Quarterly Financial Comparison
(in millions except per share data) Q2 FY13 Q1 FY13 Q/Q
Revenue $1,044.3 $924.9 up 12.9%
Gross margin 51.8% 50.1% up 1.7 p.p.
Operating expenses $401.1 $390.5 up 2.7%
Net income $119.0 $60.4 up 97.0%
Earnings per share $0.19 $0.10 up 90.0%


Non-GAAP Quarterly Financial Comparison*
(in millions except per share data) Q2 FY13 Q1 FY13 Q/Q
Revenue $1,044.3 $924.9 up 12.9%
Gross margin 52.0% 50.4% up 1.6 p.p.
Operating expenses $342.5 $348.0 down 1.6%
Net income $170.4 $97.5 up 74.8%
Earnings per share $0.27 $0.16 up 68.8%


*Non-GAAP earnings excluded stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a contribution expense in the second quarter of fiscal 2013, and the tax impact associated with such items.

Impressive quarter.

Excellent break down of the companies divisions: http://phx.corporate-ir.net/External.Fi ... lwZT0z&t=1

Very nice numbers from top to bottom. Nvidia's positive outlook for the remainder of the year is very different from what we been hearing from its competitors.

It was indeed an excellent break-down -- and nVidia seems very bullish for the next quarter based on their guidance.

Jensen just mentioned that Kepler is about to address the gaming segment - the $99 to $250 price point; sounds like 660 will be launched soon

Also, it appears that 28nm will still be constrained through the entire quarter but individual pricing is up along with yield so margins look to be good

I think Nvidia has a strong chance at grossing over $7 billion and getting close to $8 billion in revenue next year. If they can keep up the close relations they have with Google, Apple, and MS, and possibly backdoor their way back into a next-gen console, then they will be break the $2 billion per quarter mark sometime during 2013.

I suspect Tegra 4 was delayed to specifically improve graphics performance after Apple's A5X came out and basically slapped two GPU's into their SoC, so I'm cautiously optimistic that Nvidia will finally take a leadership role in graphics performance among ARM vendors.

Quadro and Tesla were both down. The other business - consumer GPU and mobile - made up for the margin loss - despite the 28nm issues.

Jensen mentioned they need to drive up yields of 28nm which is still lower than 40nm was to improve margins

I think this is the first time that i heard that there are 50 to 100 million core PC gamers that upgrade their video cards every couple of years.