SANTA CLARA (dpa-AFX) - Graphics chip maker Nvidia Corp. (NVDA) said Thursday after the markets closed that its second quarter profit fell 19% from last year, as revenue declined 6.4% amid weakness in the company's Tegra Processor business.
However, the company's quarterly earnings per share came in above analysts' expectations as did its quarterly revenue.
At the same time, the company forecast third quarter revenue below analysts' current consensus estimate.
'The GPU business continued to grow, driving our fourth consecutive quarter of record margins,' said Jen-Hsun Huang, president and chief executive officer of NVIDIA.
Nvidia shares are currently losing 0.33% in after hours trading after closing the day's regular trading session at $14.70, up 10 cents. The shares trade in a 52-week range of $11.15 to $15.48.
Nvidia specializes in graphics processing units for PCs, but recently it has also been making inroads into the mobile computing market through its Tegra chips.
Earlier this year, the company launched Tegra 4, the world's fastest mobile SOC and the first quad-core A15 SOC.
For the second quarter ended July 28, 2013, the Santa Clara, California-based company reported net income of $96.4 million, or $0.16 per share, compared to $119.0 million or $0.19 per share for the year-ago quarter.
Excluding items, adjusted net income for the second quarter was $133.3 million or $0.23 per share, compared to $170.4 million or $0.27 per share in the prior year quarter.
On average, 29 analysts polled by Thomson Reuters expected the company to earn $0.13 per share for the second quarter.
Gross margin for the quarter improved to 55.8% from 51.8% a year ago, while adjusted gross margin increased to 56.3% from 52.0% last year.
Revenue for the second quarter fell 6.4% to $977.24 million from $1.04 billion in the same quarter last year. Thirty analysts had a consensus revenue estimate of $976.43 million for the second quarter.
The company's GPU business had second quarter revenue of $858.6 million, up 7.5% from a year earlier. On the other hand, the Tegra Processor business generated revenue of $52.6 million in the second quarter, down 70.7% year over year.
Looking forward, the company said it expects third quarter revenue to be $1.050 billion, plus or minus 2%. Analysts currently expect the company to post revenue of $1.10 billion for the third quarter.
Reported and adjusted gross margins are expected to be approximately flat relative to the prior quarter at 56.0% and 56.3%, respectively.
Nvidia will pay its next quarterly cash dividend of $0.075 per share on September 13 to all shareholders of record on August 22.
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