Tegra sales slip into a nosedive
Nvidia this week reported $977.2 million in total revenue for its second quarter of fiscal 2014 ended July 28, 2013, up 2.4 percent from $954.7 million the prior quarter though down 6.4 percent from $1.04 billion in the same period a year ago. This led to a 23.8 percent sequential jump in profit to $96.4 billion, or $0.16 per share. Not too shabby considering Tegra sales fell off a cliff last quarter.
The GPU maker's Tegra Processor business raked in just $52.6 million in revenue in Q2, down a whopping 49 percent sequentially and a stomach churning (for Nvidia investors) 70.7 percent year-over-year.
"These decreases were largely due to lower unit shipments of Tegra 3 processors as customers ramped down production of Tegra 3-based smartphones and tablets, as expected," Nvidia said in a statement. "They also reflect lower revenue associated with the sale of embedded products and game controls, offset by increased revenue from automotive products."
Nvidia's GPU business fared far better, generating $858.6 million in revenue, up 9.3 percent sequentially and 7.5 percent year over-year. There was a slight decrease in notebook GPU revenue, but on the desktop, GeForce GPU revenue jumped 13.8 percent sequentially and 3.9 percent year-on-year, Nvidia said.