Nvidia Corp. said revenue for the July quarter was above its
projection as the graphics chip maker saw strong demand for its
GeForce GTX gaming processors, reflecting new games and growth in
e-sports.
The company also experienced strong growth in the customer base
for Nvidia Grid graphics virtualization.
Nvidia shares rose 9.4% to $22.37 in after-hours trading.
For the current quarter, Nvidia projects revenue of $1.18
billion, plus or minus 2%. Analysts polled by Thomson Reuters
project $1.1 billion.
In May, Nvidia said it would wind down its Icera modem
operations as it shifts its focus toward gaming, automotive and
cloud computing applications, and expected related restructuring
charges of about $100 million to $125 million. At the time, Nvidia
said it was "open to a sale of the technology or operations," but
said Thursday that "a viable buyer failed to emerge."
For the period ended July 26, Nvidia reported a profit of $26
million, or five cents a share, compared with $128 million, or 22
cents a share, a year earlier. The latest quarter included an
Icera-related charge of 19 cents a share.
Excluding stock-based compensation and other items, earnings
rose to 34 cents from 30 cents.
Revenue rose 5% to $1.15 billion. Nvidia had projected revenue
of $1.01 billion, plus or minus 2%, indicating a range between $999
million and $1.03 billion.
Gross margin fell to 55% in the July quarter from 56.1% a year
earlier.
Nvidia bought the Icera business in 2011 to compete in the
smartphone segment. But that business proved volatile. Rivals such
as Qualcomm Inc. snapped up most of the available market in
smartphones, while several Android-based tablets using Nvidia's
chipset failed to sell well.
Most of Nvidia's business comes from graphics-processing chips
embedded in high-end PCs and workstations, used by specialists like
graphic designers and gamers. That high-end focus helps offset a
structural decline in PC sales.
Santa Clara, Calif.-based Nvidia has been active in automotive
products. It supplies the tabletlike infotainment system in Tesla
Motors Inc.'s Model S. The company said Thursday that it is working
with more than 50 companies in connection with its Nvidia Drive
technology for self-driving cars.
Write to Josh Beckerman at josh.beckerman@wsj.com
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