Nvidia Posts Second Quarter 2006 Profit

Hardware creator Nvidia, which manufactures many of the most popular high-end PC graphics cards for gaming, as well as the forthcoming GPU for Sony's PlayStation 3 console, has released quarterly results for the second quarter of fiscal year 2006, a period ending July 31st, 2005. Net income went up to $74.8 million, an extremely impressive thirteenfold increase over the same period in fiscal year 2005, when net income was $5.1 million. The 41 cent-per-share income showed a higher return than analysts had expected, with predictions of 34 cents per share. Revenue jumped 24 percent from Q2 2005, from $456.1 million to $574.8 million, but Nvidia narrowly missed its forecast of $585.4 million. "Strong year-over-year revenue growth in our desktop GPU, MCP, and workstation product lines, combined with our intense focus on gross margin improvement led to our highest quarterly net income in three years," said CEO Jen-Hsun Huang. The successful quarter was attributed to gains in its nForce product line, whose performance has increased 128 percent over Q2 2005, and its Quadro line, which made a 40 percent jump in revenue over Q2 2005. "Our continued success underscores the importance of our key long-term growth strategies," said Huang, "innovate and be the world GPU leader, expand and extend the reach of GPUs beyond the PC, and deliver total innovative market-defining platforms."