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NVIDIA announces the results for the third quarter FY 2020



Today, NVIDIA announced its third-quarter results for its fiscal year 2020, and the company's earnings took a hit compared to their third-quarter 2019 earnings with a profit of $ 3,014 billion this quarter, a 5% decrease over the prior year . However, the gross margin was up to a very healthy 63.6%, up 3.2% from a year ago. Operating profit decreased by 12% to $ 927 million, while net income decreased by 27% to $ 899 million. Earnings per share fell to $ 1.45, a decrease of 26% from $ 1.97 a year ago.

NVIDIA Q3 2020 Financial Results (GAAP)
Q3 & # 39; 2020 Q2 & # 39; 2020 Q3 & # 39; 2019 Q / Q Y / Y
Revenue $ 3014M $ 2579M $ 3181M + 17% -5%
Gross Margin [19659010] 63.6% 59.8% 60 , 4% + 3.8% + 3.2%
Operating profit 927 M $ $ 571 M $ 1058 M +62% -12%
Net profit $ 899 million $ 552 million $ 1230 million + 63% -27%
EPS $ 1.45 [19659009] $ 0.90 $ 1.97 + 61% -26%

NVIDIA divides its business into two high-class categories, with GPU and Tegra. GPU revenue decreased by 8% to $ 2,565 million, while Tegra increased by 10% to $ 449 million.

By dividing these into markets, NVIDIA's gaming revenue decreased by 6% to $ 1.659 billion, with NVIDIA contributing to a decline in desktop GPU sales. A year ago, NVIDIA launched its Turing platform, which means that they are now one year on their latest platform, with sales not quite as high as when it was launched. However, sales of desktop GPUs were partly offset by increased portable GPUs as well as the gaming platform SoCs.

Professional Visualization set a record for revenue, up 6% from a year ago and totaled $ 324 million. NVIDIA has stated that they have had strong sales of mobile workstation products.

Data Center revenue decreased by 8% to $ 726 million. NVIDIA has seen lower business revenue and sales of products with lower margins than some of their top-level data center products, but this decline was partly offset by increased demand on the hyper-scale. sales of autonomous vehicle solutions and legacy infotainment modules were highlighted, but growth in AI cockpit solutions helped to prevent the decline.

Finally, OEM and other revenues totaled $ 143 million, down 3% from a year ago.

NVIDIA Quarterly Revenue Comparison (GAAP)
($ million)
In million Q3 & # 39; 2020 Q2 & # 39; 2020 Q3 & # 39; 2019 Q / Q Y / Y
Gaming [19659009] $ 1659 [19659010] $ 1313 $ 1764 + 26% -6%
Professional Visualization $ 324 $ 291 $ 305 + 11% + 6%
datacenter [19659010] $ 726 [19659010] $ 655 [19659010] $ 792 [19659010] + 11% [19659010] -8% [19659009] Automotive [19659010] $ 162 [19659010] $ 209 [19659010] $ 172 [19659010] -22% [19659010] -6%
OEM & IP $ 143 $ 111 $ 148 + 29% -3%

NVIDIA has driven a great wave of success in recent years and the company has diversified considerably, but in recent quarters has seen the company fall back to earth somewhat. But with strong margins, they are investing heavily in R&D, with $ 53 million more spent this quarter than a year ago, and for the first nine months of their fiscal year 2020, they have spent and another $ 163 million so far, giving a total of 2020 to $ 400 million.

NVIDIA expects revenues of $ 2.95 billion, plus or minus 2% with a gross margin of 64.1%, plus or minus 0.5%.

Source: NVIDIA Investor Relations [19659085]
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