Nvidia's Revenue Slips 14 Percent, GPU Maker Eyes Return to Growth in Second Half

Paul Lilly

Compared to last year, Nvidia is moving in the right direction.

Nvidia reported revenue of $954.7 million for the first quarter of fiscal 2014 ended April 28, 2013. That's down 13.7 percent from $1.11 billion in the fourth quarter of fiscal 2013, though up a little more than 3 percent compared to last year. A similar story played out with regards to Nvidia's net income (profit), which totaled $77.9 million for the quarter, down 55.2 percent sequentially but up 29 percent year-on-year.

"The success of Kepler-based GPUs within and beyond the PC helped drive another quarter of record margins," said Jen-Hsun Huang , president and chief executive officer of Nvidia. "Kepler is capturing share among gamers, strengthening our workstation and supercomputing segments, and will fuel new growth opportunities for our GRID server graphics solutions. With Tegra 4 devices and Tegra 4i certification on the way, we're gearing up to return to growth in the second half."

Nvidia had a few notable product launches last quarter, including its Tegra 4i SoC (System-on-Chip), it's first fully integrated 4G LTE mobile processor that it claims is three times faster and half the size of its nearest competitor. The GPU maker also launched the GeForce GTX Titan graphics card for desktops.

Like Apple, Nvidia is planning to line its shareholders pockets. Nvidia said it will return in excess of $1 billion this fiscal year to shareholders in the form of share repurchases and quarterly dividend payments.

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