Nvidia boasts of record Q3 2016 revenue
November 6, 2015 // 11:40 a.m.
Nvidia has reported record revenue for the third quarter of its 2016 financial year, boasting a seven per cent boost year-on-year alongside a hike to profit margins.
In the company's latest earning's call, Nvidia co-founder and chief executive officer Jen-Hsun Huang revealed revenue of $1.305 billion and a gross margin of 56.3 per cent - both welcome increases on the same quarter of its last financial year, representing a seven per cent boost in revenue and a 1.1 percentage point increase in margin. Better still, the figures represent a record for the company - and, Huang claimed, are an indication that the company's recent decision to diversify into new markets like the automobile industry were soundly made.
'Our record revenue highlights Nvidia position at the centre of forces that are reshaping our industry,' boasted Huang during the company's earnings call. 'Virtual reality, deep learning, cloud computing and autonomous driving are developing with incredible speed, and we are playing an important role in all of them. We continue to make great headway in our strategy of creating specialised visual computing platforms targeted at important growth markets.'
Detailed figures released by chief financial officer Collete Kress during the call broke things down still further: GPU revenue, unsurprisingly, accounted for the bulk of the company's earnings at $1.1 billion, a 12 per cent increase year-on-year; the ARM-based Tegra CPU division, meanwhile, dropped 23 per cent to $129 million as the company struggled to find manufacturers willing to integrate the chip in mainstream products; the company's Quadro professional graphics division also dropped eight per cent to $190 million, despite the launch of the company's Iray raytracing technology and DesignWorks suite; the company's Tesla and GRID data-centre efforts dropped a further eight per cent year-on-year to $82 million; while the burgeoning automotive arm jumped 51 per cent to a record $79 million thanks to design wins with companies including Tesla, Mercedes-Benz, Audi, Porsche, Honda, and Bentley.
Several times during the call, Huang declared virtual reality to be the next big driving force for the company's growth. 'I would say that the GTX 970 is the minimum requirement, and I think Oculus has done a good job setting that minimum requirement,' he explained during a question and answer session. 'If anybody were to walk up to me and ask me for a recommendation I would tell them that a GTX 980 Ti would be the baseline, and in my own case I'll probably have a pair of Titans. Who doesn't need a pair of Titans?'