Revenue of $954.7 million
GAAP net income of $77.9 million, or $0.13 per diluted share. Non-GAAP net income of $113.8 million, or $0.18 per diluted share
Record GAAP and non-GAAP gross margins of 54.3 percent and 54.6 percent respectively
NVIDIA (NASDAQ: NVDA) today reported revenue for the first quarter of fiscal 2014, ended April 28, 2013, of $954.7 million, down 13.7 percent from $1.11 billion in the fourth quarter of fiscal 2013.
GAAP earnings per diluted share were $0.13, down 53.6 percent from $0.28 in the prior quarter. Non-GAAP earnings per diluted share were $0.18, down 48.6 percent from $0.35 in the prior quarter.
As previously announced, NVIDIA plans to return in excess of $1 billion this fiscal year to shareholders in the form of share repurchases and quarterly dividend payments. During the first quarter, NVIDIA returned $146.3 million to shareholders by repurchasing $100 million of shares, and paying $46.3 million of dividends, or $0.075 per share. As part of NVIDIA's capital return program, the company plans to continue its quarterly dividend program at $0.075 per share and to return additional cash of at least $750 million during fiscal 2014, largely through a structured share repurchase program.
"The success of Kepler-based GPUs within and beyond the PC helped drive another quarter of record margins," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Kepler is capturing share among gamers, strengthening our workstation and supercomputing segments, and will fuel new growth opportunities for our GRID server graphics solutions. With Tegra 4 devices and Tegra 4i certification on the way, we're gearing up to return to growth in the second half."
NVIDIA's outlook for the second quarter of fiscal 2014 is as follows:
Revenue is expected to be $975 million, plus or minus two percent.
GAAP and non-GAAP gross margins are expected to be approximately flat relative to the prior quarter, at 54.3 percent and 54.6 percent, respectively.
GAAP operating expenses are expected to be approximately $448 million; non-GAAP operating expenses are expected to be approximately $408 million.
GAAP and non-GAAP tax rates for the second quarter and annual fiscal 2014 are both expected to be 16 percent, plus or minus one percent. This estimate excludes any discrete tax events that may occur during a quarter, which, if realized, may increase or decrease our actual effective tax rates in such quarter.
We estimate depreciation and amortization for the second quarter to be approximately $61 million to $63 million. Capital expenditures are expected to be in the range of $65 million to $75 million.
Diluted shares for the second quarter are expected to be approximately 590 million.
Among highlights of the first quarter of fiscal 2014, NVIDIA:
Announced its intention to return in excess of $1 billion to shareholders during fiscal 2014.
Introduced NVIDIA® GRID™ VCA™, the industry's first visual computing appliance -- enabling businesses to deliver ultra-fast GPU performance to any Windows, Linux or Mac client on their network.
Announced that NVIDIA GRID-based servers are now available from Dell, HP and IBM, and that NVIDIA GRID-enabled software is available from Citrix, Microsoft and VMware.
Introduced its first fully integrated 4G LTE mobile processor, NVIDIA® Tegra® 4i, which is three times faster yet half the size of its nearest competitor.
Introduced GeForce® GTX™ TITAN for gamers, with the DNA of the world's fastest supercomputer and powered by world's fastest GPU.
NVIDIA will pay its next quarterly cash dividend of $0.075 cents per share on June 14, 2013, to all stockholders of record on May 23, 2013.
CFO Commentary and Earnings Presentation
Commentary on the quarter by Karen Burns, NVIDIA interim chief financial officer, and a presentation, are available at http://www.nvidia.com/ir.
Conference Call and Webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2014 financial results and current financial prospects today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). To listen to the call, please dial (706) 679 2572. A live webcast (listen-only mode) of the conference call will be accessible at the NVIDIA investor relations web site http://www.nvidia.com/ir and at http://www.streetevents.com. The webcast will be recorded and available for replay until the company's conference call to discuss its financial results for its second quarter fiscal 2014.
To supplement NVIDIA's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income tax expense, non-GAAP net income, non-GAAP net income, or earnings, per share, and free cash flow. In order for NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, and the associated tax impact of these items, where applicable. Free cash flow is calculated as GAAP net cash provided by operating activities less purchases of property and equipment and intangible assets. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
Since 1993, NVIDIA (NASDAQ: NVDA) has pioneered the art and science of visual computing. The company's technologies are transforming a world of displays into a world of interactive discovery -- for everyone from gamers to scientists, and consumers to enterprise customers. More information at http://nvidianews.nvidia.com and http://blogs.nvidia.com.