View Full Version : Nvidia stocks up, ATI stocks down, as Nvidia exceeds their expectations

11-07-03, 02:48 PM
Regardless of how much you like or dislike the GeForce FX series, it is apparent Nvidia has marketed their products quite well.


"UPDATE 3-Nvidia swings to profit, revenue rises 13 pct
Thu November 6, 2003 06:29 PM ET

(Updates with outlook, share price)
SAN FRANCISCO, Nov 6 (Reuters) - Graphics chip designer Nvidia Corp. (NVDA.O: Quote, Profile, Research) said on Thursday it swung to a quarterly net profit as revenue rose a stronger-than-expected 13 percent and that current-quarter sales will be above Wall Street's average estimate on strong growth across its product line.

Shares in Nvidia jumped 7.4 percent in after-market trade following its quarterly results and outlook, helped by confident statements by the company's chief executive.

"Nvidia had a solid quarter and our business fundamentals have turned the corner," Nvidia CEO Jen-Hsun Huang said.

The company reported third-quarter net income of $6.4 million, or 4 cents a share, compared with a net loss of $48.6 million, or 32 cents, a year earlier.

Nvidia said its latest results included a charge of $3.5 million for the write-off of research and development that resulted from its acquisition of MediaQ Inc. in August, and a charge of $13.1 million for the full redemption of $300 million of its 4.75 percent convertible subordinated notes last month.

Nvidia, whose chips are used by PC makers Apple Computer Inc. (AAPL.O: Quote, Profile, Research) , Dell Inc. (DELL.O: Quote, Profile, Research) , Gateway Inc. (GTW.N: Quote, Profile, Research) and International Business Machines Corp. (IBM.N: Quote, Profile, Research) , said its third-quarter revenue rose to $486.1 million from $430.3 million a year earlier.

Analysts had on average expected sales of $479.4 million, according to Reuters Research, a unit of Reuters Group Plc.

Nvidia Chief Financial Officer Marvin Burkett said the company expects strong growth across its graphics processor product lines, and he forecast current, fourth-quarter revenue to be flat with third-quarter's $486.1 million in sales.

Analysts on average had expected fourth-quarter sales of $479.2 million.

Analyst Peter Labe of Nutmeg Securities noted Nvidia presented a strong balance sheet in its third-quarter report. "They now have no debt and $612 million in cash," he said. "That's a plus."

Shares in Nvidia rose to $19.51 in after-market trade from their close at $18.17 on Nasdaq."

"Shares of ATI Technologies Inc. (ATY.TO: Quote, Profile, Research) (ATYT.O: Quote, Profile, Research) fell almost 5 percent on Wednesday morning after the company's president said he would sell up to a million shares of the graphics chips manufacturer, depending on market conditions.

ATI shares were down 62 cents at $14.31 on Nasdaq, and were down 87 cents at C$19.08 in Toronto"

11-07-03, 03:11 PM
Of course the loss from $48.6 million loss also included $60+ millions in stock exchanging it did with its employees at the time.

X-bit labs has some more in-depth analysis (http://www.xbitlabs.com/news/video/display/20030811083058.html).

Overall I thought the most interesting part was getting some revenue numbers on the Xbox parts (~19%), so I'm guessing they are none-too-happy losing X2.

Overall picture certainly isn't bleak, but it isn't as pretty as they'd like to paint it.


<edit>And this is where I sigh after finding out my Google search revealed a good SECOND quarter report, but threw it as a top match and I didn't pay enough attention. Still, numbers I hadn't seen before and people may want to keep in mind anyway. ^_^ I'll root around for more info for third quarter. </edit>

11-07-03, 03:28 PM
Just a note on the ATI stock move, Orton's got 2 million shares, so this represents only half of his holdings. He's still got a million more. Apparently, he's selling his stock to engage in some real-estate activity.

He's doing this the right way so as to avoid any complaints or allegations of insider trading. This shouldn't be seen as a lack of confidence on the company or as an indication of future results.

Just my two cents since the headline provided doesn't tell the whole story.