Nvidia Corp. said its profit fell 2% in the April quarter as the
graphics chip maker increased its dividend 15%.
The company also said it will post restructuring charges of
about $100 million to $125 million related to the decision
announced Tuesday to wind down its Icera modem operations as it
shifts its focus towards gaming, automotive and cloud computing
applications.
Gross margin rose to a record 56.7% in the April quarter from
54.8% a year earlier.
For the current quarter, Nvidia projects revenue of $1.01
billion, plus or minus 2%, indicating a range between $999 million
and $1.03 billion. Analysts polled by Thomson Reuters project
$1.185 billion.
Shares fell 1.9% to $22.06 in recent after-hours trading.
Nvidia, which said Tuesday it is open to a sale of Icera
technology or operations, purchased the business in 2011 to compete
in the smartphone segment. But that business proved volatile.
Rivals such as Qualcomm Inc. snapped up most of the available
market in smartphones, while several Android-based tablets using
Nvidia's chipset failed to sell well.
Most of Nvidia's business comes from graphics-processing chips
embedded in high-end PCs and workstations, used by specialists like
graphic designers, as well as gamers, who need the extra
horsepower. That high-end focus helps offset a structural decline
in PC sales.
Write to Josh Beckerman at josh.beckerman@wsj.com
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