Sneak Peek at NVIDIA's Financials

[AzBat]

All,

After the markets closed today NVIDIA made the following announcement regarding it's financials to be released next week:

NVIDIA today announced that it expects to report total revenues of approximately $455 million to $460 million for the second quarter of fiscal 2004 ended July 27, 2003, within the guidance provided by the Company on its last quarterly conference call. Gross margins are expected to be slightly lower than the Company's original guidance. This was a result of higher than anticipated product costs attributed to 0.13 micron semiconductor process technology.

The Company experienced solid growth from Xbox and from record shipments of the GeForce FX family of GPUs. In addition, the Company successfully transitioned its mobile product line to its new GeForce FX Go family and recently began ramping numerous notebook design wins. More details will be provided during NVIDIA's quarterly conference call to be held on August 7, 2003.

Interesting. They blamed their lower margins on the 0.13 processing, but also said they had record shipments from the GeForce FX family. It will be interesting to hear the conference call on Aug. 7 at 2PM PDT. You can dial 706-679-0543 or visit NVIDIA's web site or www.streetevents.com. Replay will be available by phone at 800-642-1687 (or 706-645-9291), passcode 1940104.

Tommy McClain

 

[Gnep]

Well "Record Sales" of the GFFX line is a bit of an odd one. I suspect they mean in this quarter they sold more GFFX's than any previous quarter, which would hardly be a surprise given how long the line has been out.... they SHOULD still be increasing sales per quarter as the older ones are phased out. I would be worried for them if this was not the case.

Also I suspect, unfortunately, that the 5200 has been selling rather well. You see it all over the shops in Tottenham Court Road.

Interesting to see what the share price does tomorrow morning on the opening.

 

[nooneyouknow]

Considering these are the past financials:

13 Weeks Ending 04/27/03 - 405.0 Million
13 Weeks Ending 01/26/03 - 469.0 Million
13 Weeks Ending 10/27/02 - 430.3 Million
13 Weeks Ending 07/28/02 - 427.3 Million
13 Weeks Ending 04/28/02 - 582.9 Million

They were off by 30+% in revenue (-178 Million in FY04Q1 vs FY03Q1), and now up by ~25 Million, they are still down over 150 Million $ from FY 03. I don't have ATI numbers but I believe they are on the rise in revenue. Yes, I know, profit is what counts, but revenue is an interesting trend to follow.

 

[Joe DeFuria]

I was wondering if something was impacting ATI and nVidia stock today. Techs in general didn't do much of anything, and yet ATI gained nearly 7%, and nVidia lost about 3%.

My guess is this news was making the rounds before the public announcement...

 

[MikeC]

I don't have ATI numbers

http://yahoo.multexinvestor.com/IS....cialinfo/statements/incomestatement/quarterly

 

[Dean]

I don't have ATI numbers

http://yahoo.multexinvestor.com/IS....cialinfo/statements/incomestatement/quarterly

Actually thats not the ati you're thinking of Mike. Ati's stock symbol is atyt. Even though Nvidia isn't doing great they still pull in quite higher numbers than ATI.

http://yahoo.multexinvestor.com/IS....cialinfo/statements/incomestatement/quarterly

 

[Quinn1981]

They did spend a lot of money while they had nothing on-shelf for a while. That amount of time usually kills normal companies. They do have a lot of friends and other products to sell though, so it wasn't too bad. I'm just glad they've made it through it all fairly well.

On the .13 process, perhaps there were a lot of unusable yields at first that account for the cost they claim.

 

[Joe DeFuria]

I don't have ATI numbers but I believe they are on the rise in revenue. Yes, I know, profit is what counts, but revenue is an interesting trend to follow.

What's very interesting with the the ATI numbers, is that their trends in revenue has been positive...despite the fact they've been weaning off direct AIB sales. (Higher revenues with lower priced products = higher volumes shipped.) That to me speaks volumes. Directionally speaking, ATI's business is growing significantly more than the numbers themseleves indicate.

 

[WaltC]

Well "Record Sales" of the GFFX line is a bit of an odd one. I suspect they mean in this quarter they sold more GFFX's than any previous quarter, which would hardly be a surprise given how long the line has been out.... they SHOULD still be increasing sales per quarter as the older ones are phased out. I would be worried for them if this was not the case.

Also I suspect, unfortunately, that the 5200 has been selling rather well. You see it all over the shops in Tottenham Court Road.

Interesting to see what the share price does tomorrow morning on the opening.

Yes, especially considering how thoroughly their .13 micron yield problems have been addressed in the press (even by nVidia itself) for most of this year so far. Reading between the lines it might be inferred they are heavily discounting the .15 micron GFFX's to get them into the areas their cheaper chips formerly dominated. This would explain their "record number" allusion while at the same time is not contradicting their report of loss of margins due to .13 micron problems. Ah, it's just a guess. We can trust all of these companies to put their best foot forward when delivering their financials. It's attempting to read between the lines that's interesting...