Q3 results reveal substantial year-on-year growth for NVIDIA

NVIDIA has announced its Q3 results for the period ending 30th October, boasting a 13 per cent increase in revenue and a massive 152 per cent increase in net income compared to the same period in 2004.

Revenue for the quarter was posted at USD 583.4 million, compared to USD 515.6 million for the same period a year ago. The company's operating income grew 149 per cent to USD 71.5 million, including a significant charge of USD 14.2 million for the settlement of various litigation matters.

Taking a broader look over the nine month period for NVIDIA's 2006 fiscal year, revenue reached a record USD 1.74 billion, and net income was recorded as USD 204.5 million, or USD 1.13 per diluted share (including a USD 0.06 per share charge for the anticipated litigation settlements). The figures reveal an immense year-on-year growth of 291 per cent.

Third quarter highlights include regaining the desktop GPU segment leadership with, according to the Mercury Research Third Quarter 2005 PC Graphics Report, a 50 per cent share in the market. The introduction of NVIDIA GoForce GPUs in Sony Ericsson's W900i Walkman phone and Motorola's popular RAZR handset has also boosted both revenue and market share for the company.

Jen-Hsun Huang, NVIDIA's president and CEO commented: "Two years ago, with gross margins in the high twenties, we set a corporate objective to achieve gross margins in the high thirties. Seven quarters later, we delivered. Through cross-functional profit improvement initiatives, we are re-architecting business and operational processes that will drive sustainable advantages going forward."

"Looking ahead, with our GPU and MCP product families continuing to lead the competition, we expect significant growth in our desktop, notebook, and handheld businesses," Huang added.