Tremendous Demand Exists in the High-End Graphics Segment, Says NVIDIA

@ 2004/11/06
NVIDIA said its third quarter fiscal year 2005 results were boosted by great acceptance of the GeForce 6800-series of graphics processors, despite shortages of such products that were a result of unexpectedly high demand on high-end graphics products.

For the third quarter of fiscal 2005, revenue was $515.6 million, compared to $486.1 million for the third quarter of fiscal 2004. Net income for the third quarter of fiscal 2005 was $25.9 million, or $0.15 per diluted share, compared to net income of $6.4 million, or $0.04 per diluted share, for the third quarter of fiscal 2004, an increase of over 300%. Gross margin was also up to 32.3%.

“What we’ve seen in PC graphics this year is record demand on performance segments. It is partly because this [GeForce 6] was a new architecture and partly because there are so many great games are coming out,” said Jen-Hsun Huang, NVIDIA’s CEO.

Leading analyst firms, such as Needham & Company, estimate that that 40% of revenue came from sales of desktop GPUs, roughly 6.5% were received from advanced memory supplied with high-end graphics processing units, 15% were got for workstation graphics products, about 8% came from mobile graphics chips, 20% of earnings came from Microsoft’s Xbox products, nForce revenues accounted for 6.8 of all, sales of handheld products achieved 2.4% of the revenue.

NVIDIA expects revenues to remain relatively flat in Q4 FY2005. The company forecasted Xbox components’ sales to decline in the upcoming quarter, but expects its mainstream and high-end products to gain market share.

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