Nvidia's Q3 sales, revenue down from last year; outlook soft

Summary:Today in the tech marketplace: Twitter got the glory. Groupon fell apart. Nvidia was there too.

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While everyone was mesmerized by the Twitter IPO and witnessed Groupon shares plummet, Nvidia quietly published its third quarter earnings report after the closing bell on Thursday.

The GPU maker reported a net income of $118.7 million, or 20 cents per share (statement).

Non-GAAP earnings were 26 cents per share on a revenue of $1.054 billion, down 12.5 percent year-over-year. EPS was down by a whopping 39.4 percent from the same quarter last year.

Nevertheless, Nvidia still beat estimates given that Wall Street was looking for earnings of at least 20 cents per share on a revenue of $1.05 billion.

That was good enough for some shareholders as Nvidia stock was up by approximately three percent in after-hours trading.

Following the first shipment of Tegra 4 devices during the three-month period, CEO Jen-Hsun Huang focused on the bigger picture in prepared remarks:

Visual computing is increasingly important to more and more markets. It's creating demand for GPUs and opening up large opportunities. The proof can be seen in the proliferation of Tegra into new verticals like automotive and set-top boxes, in our all-time high Quadro and Tesla revenues, and in the record number of customer trials for our GRID datacenter initiative. At a time when many are struggling with the decline in the mainstream PC market, our visual computing leadership has positioned us well to grow with the accelerating adoption of GPUs in the cloud and the world of connected devices.

For the fourth quarter, Wall Street is expecting Nvidia to return with earnings of approximately 22 cents per share on a revenue of $1.08 billion.

But Nvidia only offered guidance of $1.05 billion in revenue, plus or minus two percent.

Topics: Hardware, Mobility, Processors, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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