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 toward gaming, automotive and cloud computing
applications.
Gross margin rose to a record 56.7% in the April quarter from
54.8% a year earlier, while the company saw growth from GeForce
gaming products and automotive "infotainment" systems.
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 1.3% to $22.20 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.
For the period ended April 26, Nvidia reported a profit of $134
million, or 24 cents a share, compared with $137 million, or 24
cents a share, a year earlier. Excluding stock-based compensation
and other items, earnings rose to 33 cents from 29 cents. Analysts
polled by Thomson Reuters expected per-share profit of 26
cents.
Revenue rose 4% to $1.15 billion. The company had projected
revenue of $1.16 billion, plus or minus 2%, implying a range
between $1.14 billion and $1.18 billion.
Nvidia increased its quarterly dividend to 9.75 cents from 8.5
cents, part of a plan to increase its return to shareholders to
$800 million from the previously stated $600 million for the year
ending in January. The plan also includes an extended stock-buyback
program.
Write to Josh Beckerman at josh.beckerman@wsj.com
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