NVIDIA posted second-quarter revenue of $1.044 billion, up from $1.016 billion in the same quarter a year ago, and higher than the $1.007 billion expected by Wall Street analysts.
In its previous quarter, NVIDIA posted revenues of $924 million.
While revenue proved to be higher, NVIDIA’s GAAP net income was down from the same quarter last year: $119 million versus $152 million.
This drop was largely because of higher costs.
CEO Jen Hsun Huang partially credits this quarter’s good numbers to Tegra’s inclusion in some of the more popular Android tablets such as the Google Nexus 7 — a tablet Mr. Huang speaks highly about.
“It’s the first thing I use in the morning and the last thing I use at night,” Mr. Huang said on an earnings call. “If you have an Android phone, you ought to go out and get yourself an Android tablet because all of your content just shows up.”
Considering that growth in the PC market continues to be marginal at best, NVIDIA is planning to decouple itself as much as possible from the market and try and be the dominate player in the tablet sector.
“A lot of people think that the tablet market in just a few more years will be as large as the entire PC mobile market,” Mr. Huang said.
NVIDIA’s results were not entirely rosy, as the company did disclose that it was having supply issues from Taiwan Silicon Manufacturing Company (TSMC). TSMC has struggled with the demand for 28nm fabrication, as the company underestimated demand. As manufacturing silicon is an incredibly complex operation, a company cannot simply switch manufacturers should one foul up.
“We have no idea how much business we left on the table. And we expect to be supply constrained throughout the quarter,” NVIDIA’s CEO said on the TSMC topic.
NVIDIA is currently trading at $14.64 on the NASDAQ.