NVIDIA announced its financial results for Q3 of fiscal 2014 posting profits, but the company's weak future outlook raises concerns in the market.
On Thursday, November 7, the graphic chipmaker made the earnings call for Q3 of fiscal 2014, which ended on October 27, 2013. The company reported earnings of $1.054 billion, which is up by 7.9 percent from $977.2 million in Q2 of fiscal year 2014. The earnings of the company beat Wall Street estimates as analysts predicted earnings of $1.052 for the quarter.
NVIDIA reported net income of $119 million, or 20 cents per share in the quarter ended in October, when compared to net income of $209 million, or 33 cents per share, in Q3 of fiscal 2013.
The company also announced that it expects revenue for the current quarter to be $1.05 billion, plus or minus 2 percent, which is nearly flat when compared to earnings of Q3 of fiscal 2014. Analysts expect earnings of $1.083 billion for the current quarter.
"Visual computing is increasingly important to more and more markets," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "It's creating demand for GPUs and opening up large opportunities. The proof can be seen in the proliferation of Tegra into new verticals like automotive and set-top boxes, in our all-time high Quadro and Tesla revenues, and in the record number of customer trials for our GRID datacenter initiative. At a time when many are struggling with the decline in the mainstream PC market, our visual computing leadership has positioned us well to grow with the accelerating adoption of GPUs in the cloud and the world of connected devices."
Global PC industry is witnessing a downward trend and Nvidia has also expanded its business in the tablet industry. Moreover, the company is working on smartphone chips but is facing stiff competition from Qualcomm and other rivals. Some market observers also believe that NVIDIA should exit from the mobile device industry and focus more on gaming PCs, enterprise computing and automotive.
NVIDIA's share price was down by 2.38 percent at $14.55 on Nasdaq after the earnings call. On Friday, the shares closed up 6.98 percent at $15.56.
