Nvidia's Q2 results strong courtesy of Tegra sales

Summary:Nvidia design wins for Google's Nexus 7 tablet and Microsoft's Surface tablet highlighted momentum for the company's Tegra processor.

Nvidia reported better-than-expected second quarter results and said that its Tegra chips delivered record sales.

The graphics processor company reported second quarter earnings of $119 million, or 19 cents a share, on revenue of $1.04 billion. Non-GAAP earnings for the quarter were 27 cents a share.

Wall Street was expecting Nvidia to report second quarter earnings of 14 cents a share on revenue of $1.01 billion.

Jen-Hsun Huang, CEO of Nvidia, was upbeat about the company's prospects.

Tegra has achieved record sales as tablets come into their own. Our GPU business made strong gains in a weak market, boosted by our Kepler architecture. Looking ahead, we're optimistic.

Indeed, Nvidia's Tegra 3 processor powers Google's Nexus 7 tablet as well as Microsoft's upcoming Surface device.

As for the outlook, Nvidia projected third quarter revenue between $1.15 billion to $1.25 billion. Wall Street was expecting third quarter revenue of $1.09 billion. Margins in the third quarter are expected to be flat, or about 52 percent, with the second quarter.

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Topics: Mobility, Hardware, Processors, Smartphones, Tablets

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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