X-bit Labs has thrown up an article with NVIDIA his financial results for the third quarter of fiscal 2004 ended October 26, 2003. In spite of all recent problems NVIDIA is still making a lot of profit. Here are some of NVIDIA his expectations for the future :
Expectations for the future, financials:
The company expects revenues to rise across
all markets the firm serves.
XBOX revenues to decline by $80 million, but
the decline will be offset by the growth of sales in other segments, the
Revenues will be approximately flat from Q3
to Q4, according to NVIDIA.
CFO supposes gross margins will go up.
CFO also anticipates that the gross margins
will improve with each new product introduction and its actual revenue
shipments. As “new products” ramp up, the company expects better product
costs and higher gross margins.
CEO added that the company has implemented a
“re-tuned model” to address product cost issues. He also said about
increasing margins with every new product.
NVIDIA believes GeForce FX 5700 and nForce3
chipset will generally help to increase margins already in the Q4 (looks
like the transition between GeForce FX 5600 to the GeForce FX 5700 will be
unbelievably rapid, editor).
Marvin Burkett also noted the company was
able to achieve better FX product costs from TSMC.
The company expects its gross margin to be
up 1% in the fourth quarter of fiscal 2004 (a significant improvement
keeping in mind that sales of lucrative XBOX core-logic sets will be down).
Operation expenses are expected to increase
3% to 5% quarter-to-quarter (they mean the growth over the figure – around
$115 million – that excluded one-time expenses from the Q3, editor). Some
increases are due to impact of MediaQ acquisition, some are because of
increase number of tapeouts of future products GPUs and MCPs.
Management anticipates ASPs to improve in Q4
Expectations for the future, products:
Aims to deliver “an exiting roadmap of
digital processors” for handhelds market. 60 ex-MediaQ engineers to join
Mr. Jen-Hsun Huang mentioned
“design-wins” for the GoForce 2150 for lace>
and the lace>
The co projects new lineup of ultra
low-power media processors for handhelds.
The management also talked about exciting
DTV products during the conference call, but provided not details or
timeframes for the devices.
The CEO talked on a future MCP with native
Gigabit Ethernet and Serial ATA-150. Claimed the company will bring
“MCP’s features and performance to a new level during the quarter”.
No updates on nForce for Intel CPUs.
The officials from NVIDIA confirmed a
“whole-new” NV4x family to be launched next year (probably, calendar
year, editor) and bring “programmable shading and cinematic computing to a
In Q1 some of NV4x will be in production. By
Q2 many of NV4x will be in production to bring the margins up. By Q3
“almost entire” family of NV4x will be ramping up in production. No
indications whether “calendar” or “fiscal” quarters, though.
When asked about NV40 tapeout, the
management did not comment saying “We do not comment on tapeouts; we just
comment on production ramps and design wins. There will be time to talk
about NV40, today is our time to talk about 5950 and 5700…”
NVIDIA will offer top-to-bottom lineup of
GPUs and MCPs with support for PCI Express.
NVIDIA is now sampling customers with its
“first PCI Express technology”.
NVIDIA is excited about the PCI Express and
will surely be on track with it, but denied to talk about the speed of
NVIDIA anticipates “something like” 10
different versions of GPU products next year, the majority of which will be
PCI Express, as I understood from Jen-Hsun Huang, NVIDIA’s CEO.
Both NVIDIA’s product redesigns and
IBM’s manufacturing technologies allow shrinking 0.13 micron cycle time at
IBM (65 days versus TSMC’s 80 days, according to a report from Pacific
Crest issued earlier this month, editor).