Officials from graphics processor manufacturer Nvidia have announced details of the company’s third quarter financial results, for the three months ended September 30th. During this time, profits beat analyst expectations despite increased expenses for the company.
Profits rose to $235.7 million, up more than double from $106.5 million at the same time twelve months ago. Revenues rose by 36 percent to a record $1.12 billion for the company, up from $820.6 million in 2006. Analysts had expected only an increase to $1.01 billion.
These results came despite a 24 percent increase in total operating expenses to $267.7 million, although heped by an improved gross margin of 46.2 percent.
The company, which makes the graphic processor for the PlayStation 3, attributed the impressive results to its desktop graphics processing unit (GPU) line, which grew 33 percent during the quarter, and its notebook GPU line which more than doubled.
"We are very proud to have achieved our first billion dollar quarter. And, while it is a wonderful milestone to reach, we believe this is just the beginning," said Jen-Hsun Huang, president and CEO of Nvidia. "Our core businesses are continuing to grow as the GPU becomes increasingly central to today's computing experience in both the consumer and professional market segments."
Huang added: "This is the era of visual computing and Nvidia is at the forefront. People want a delightful, compelling experience when they interact with their computing devices, whether it's on a phone, notebook, game console, or workstation. Nvidia is leading the way in making this experience more intuitive and rewarding through our relentless pace of innovation and focus on execution."