NVIDIA Enjoys Good Quarter, But Faces Tough Mobile Market

NVIDIA today reported revenue of $962.0 million for the first quarter of fiscal 2012 ended May 1, 2011, up 8.5 percent from the prior quarter, and down 4.0 percent from $1.0 billion from the same period a year earlier. On a GAAP basis, the company recorded net income of $135.2 million, or $0.22 per diluted share, for the first quarter of fiscal 2012. That compares with net income of $171.7 million, or $0.29 per diluted share, in the previous quarter, which included a $57.0 million credit to operating expenses related to the legal settlement in connection with a new Intel licensing agreement. In the same period a year earlier, the company had net income of $137.6 million, or $0.23 per diluted share. The news caused NVIDIA shares to drop 10.93% to close at $18.26. It looks like adjusted earnings of 27 cents a share on revenue of $962 million didn’t impress investors as there is heightened competition in the smartphone and tablet markets these days. Tegra is going to face some competition! For example Texas Instruments has secured the reference design for Ice Cream Sandwich. Ice Cream Sandwich is the code name for the next generation of Google Inc.s popular Android platform for mobile devices.