NVIDIA Announces Financial Results for Second Quarter Fiscal 2019

August 17, 2018

Aug. 17, 2018 — NVIDIA today reported revenue for the second quarter ended July 29, 2018, of $3.12 billion, up 40 percent from $2.23 billion a year earlier, and down 3 percent from $3.21 billion in the previous quarter.

GAAP earnings per diluted share for the quarter were $1.76, up 91 percent from $0.92 a year ago and down 11 percent from $1.98 in the previous quarter. Non-GAAP earnings per diluted share were $1.94, up 92 percent from $1.01 a year earlier and down 5 percent from $2.05 in the previous quarter.

“Growth across every platform – AI, Gaming, Professional Visualization, self-driving cars – drove another great quarter,” said Jensen Huang, founder and CEO of NVIDIA. “Fueling our growth is the widening gap between demand for computing across every industry and the limits reached by traditional computing. Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need.

“We announced Turing this week. Turing is the world’s first ray-tracing GPU and completes the NVIDIA RTX platform, realizing a 40-year dream of the computer graphics industry. Turing is a giant leap forward and the greatest advance for computing since we introduced CUDA over a decade ago.”

Capital Return

During the first half of fiscal 2019, NVIDIA returned $837 million to shareholders through a combination of $655 million in share repurchases and $182 million in quarterly cash dividends.

For fiscal 2019, NVIDIA intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases.

NVIDIA will pay its next quarterly cash dividend of $0.15 per share on September 21, 2018, to all shareholders of record on August 30, 2018.

Q2 Fiscal 2019 Summary

GAAP
($ in millions except earnings per share) Q2 FY19 Q1 FY19 Q2 FY18 Q/Q Y/Y
Revenue $3,123 $3,207 $2,230 Down 3% Up 40%
Gross margin 63.3% 64.5% 58.4% Down 120 bps Up 490 bps
Operating expenses $818 $773 $614 Up 6% Up 33%
Operating income $1,157 $1,295 $688 Down 11% Up 68%
Net income $1,101 $1,244 $583 Down 11% Up 89%
Diluted earnings per share $1.76 $1.98 $0.92 Down 11% Up 91%

 

Non-GAAP
($ in millions except earnings per share) Q2 FY19 Q1 FY19 Q2 FY18 Q/Q Y/Y
Revenue $3,123 $3,207 $2,230 Down 3% Up 40%
Gross margin 63.5% 64.7% 58.6% Down 120 bps Up 490 bps
Operating expenses $692 $648 $533 Up 7% Up 30%
Operating income $1,290 $1,428 $773 Down 10% Up 67%
Net income $1,210 $1,285 $638 Down 6% Up 90%
Diluted earnings per share $1.94 $2.05 $1.01 Down 5% Up 92%

NVIDIA’s outlook for the third quarter of fiscal 2019 is as follows:

  • Revenue is expected to be $3.25 billion, plus or minus two percent.
  • GAAP and non-GAAP gross margins are expected to be 62.6 percent and 62.8 percent, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP operating expenses are expected to be approximately $870 million and $730 million, respectively.
  • GAAP and non-GAAP other income and expense are both expected to be income of approximately $20 million.
  • GAAP and non-GAAP tax rates are both expected to be 9 percent, plus or minus one percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.

Recent Highlights

This week, NVIDIA reinvented computer graphics with the launch of its Turing GPU architecture, the company’s most important innovation since the invention of the CUDA GPU more than a decade ago. Turing is the world’s first ray-tracing GPU. It features new RT Cores to accelerate ray tracing and new Tensor Cores for AI inferencing — which, together for the first time, make real-time ray tracing possible – as well as more powerful compute for simulation and enhanced rasterization. Turing completes the NVIDIA RTX platform, a new hybrid rendering graphics approach that combines rasterization, ray tracing, compute and AI to enable real-time ray tracing, the Holy Grail of computer graphics. Turing will reset the look of video games and open up the $250 billion visual effects industry to GPUs.

NVIDIA Research continues to push the possibilities of AI with deep learning inventions such as a new technique that produces high-quality slow-motion video from standard slow-motion video; a new technique that cleans up grainy or pixelated photos simply by looking at corrupted photos; and a new method to train robots to carry out actions by observing human activity. Its work received four honors at the recent Computer Vision and Pattern Recognition Conference. It also received a $23 million contract from the Defense Advanced Research Projects Agency to work with a team of university and industry researchers to develop post-Moore’s law systems.

Other highlights of each market platform since the first quarter earnings release include:
 
Datacenter

  • Grew Datacenter revenue by 83 percent from a year earlier to $760 million.
  • Marked the launch of Summit, the world’s fastest supercomputer, at Oak Ridge National Laboratory, powered by more than 27,000 NVIDIA® Volta Tensor Core GPUs.
  • Announced that five of the world’s seven fastest supercomputers are powered by NVIDIA GPUs, based on the new list of the world’s 500 fastest systemsNVIDIA GPUs provide 56 percent of the list’s new computing power.
  • Introduced NVIDIA HGX-2, the first unified computing platform for both AI and high performance computing. A number of partners around the world, including cloud service providers, server OEMs and ODMs, are building systems incorporating HGX-2.
  • Google Cloud integrated into its offerings the NVIDIA Tesla® P4 GPU optimized for AI inference and graphics virtualization.
  • Researchers at Fast.ai achieved the fastest-ever AI training time using NVIDIA Tesla V100 GPUs available on Amazon Web Services.
  • Launched AIRI Mini with Pure Storage and ONTAP AI with NetApp, providing enterprises with an easy-to-deploy, modular approach for implementing and scaling deep learning.

CFO Commentary

Commentary on the quarter by Colette Kress, NVIDIA’s executive vice president and chief financial officer, is available at https://investor.nvidia.com/home/default.aspx.

Conference Call and Webcast Information 

NVIDIA will conduct a conference call with analysts and investors to discuss its second quarter fiscal 2019 financial results and current financial prospects today at 2:30 p.m. Pacific time (5:30 p.m. Eastern time). To listen to the conference call, dial (877) 223-3864 in the United States or (574) 990-1377 internationally, and provide the following conference ID: 3298827. A live webcast (listen-only mode) of the conference call will be accessible at NVIDIA’s investor relations website, https://investor.nvidia.com/home/default.aspx, and at www.streetevents.com. The webcast will be recorded and available for replay until NVIDIA’s conference call to discuss its financial results for its third quarter of fiscal 2019.


Source: NVIDIA

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

LANL Researchers Simulate Billion-Atom Biomolecule

April 23, 2019

Simulating large biomolecules has long been challenging. Now, researchers from Los Alamos National Laboratory, RIKEN Center for Computational Science in Japan, the New Mexico Consortium, and New York University have succ Read more…

By John Russell

Students Gird for Cluster Mayhem at ASC19

April 23, 2019

Final cluster configurations have been set, and competitors in the ASC19 Student Supercomputer Challenge have started running the various AI models and HPC benchmarks that will determine who is declared champion. But if Read more…

By Alex Woodie

Student Cluster Season Opener: ASC19

April 22, 2019

Calling all computer sports fans! Now hear this:  The 2019 Student Cluster Competition season is officially underway with the beginning of the ASC19 event on Tuesday, April 22nd. For you millions of student cluster c Read more…

By Dan Stark

HPE Extreme Performance Solutions

HPE and Intel® Omni-Path Architecture: How to Power a Cloud

Learn how HPE and Intel® Omni-Path Architecture provide critical infrastructure for leading Nordic HPC provider’s HPCFLOW cloud service.

powercloud_blog.jpgFor decades, HPE has been at the forefront of high-performance computing, and we’ve powered some of the fastest and most robust supercomputers in the world. Read more…

IBM Accelerated Insights

Bridging HPC and Cloud Native Development with Kubernetes

The HPC community has historically developed its own specialized software stack including schedulers, filesystems, developer tools, container technologies tuned for performance and large-scale on-premises deployments. Read more…

A Beginner’s Guide to the ASC19 Finals

April 22, 2019

Three thousand watts. That's how much power the competitors in the 2019 ASC Student Supercomputer Challenge here in Dalian, China, have to work with. Everybody would like more juice to run compute-intensive HPC simulatio Read more…

By Alex Woodie

A Beginner’s Guide to the ASC19 Finals

April 22, 2019

Three thousand watts. That's how much power the competitors in the 2019 ASC Student Supercomputer Challenge here in Dalian, China, have to work with. Everybody Read more…

By Alex Woodie

At ASF 2019: The Virtuous Circle of Big Data, AI and HPC

April 18, 2019

We've entered a new phase in IT -- in the world, really -- where the combination of big data, artificial intelligence, and high performance computing is pushing Read more…

By Alex Woodie with Doug Black and Tiffany Trader

Interview with 2019 Person to Watch Michela Taufer

April 18, 2019

Today, as part of our ongoing HPCwire People to Watch focus series, we are highlighting our interview with 2019 Person to Watch Michela Taufer. Michela -- the Read more…

By HPCwire Editorial Team

Intel Gold U-Series SKUs Reveal Single Socket Intentions

April 18, 2019

Intel plans to jump into the single socket market with a portion of its just announced Cascade Lake microprocessor line according to one media report. This isn Read more…

By John Russell

BSC Researchers Shrink Floating Point Formats to Accelerate Deep Neural Network Training

April 15, 2019

Sometimes calculating solutions as precisely as a computer can wastes more CPU resources than is necessary. A case in point is with deep learning. In early stag Read more…

By Ken Strandberg

Intel Extends FPGA Ecosystem with 10nm Agilex

April 11, 2019

The insatiable appetite for higher throughput and lower latency – particularly where edge analytics and AI, network functions, or for a range of datacenter ac Read more…

By Doug Black

Nvidia Doubles Down on Medical AI

April 9, 2019

Nvidia is collaborating with medical groups to push GPU-powered AI tools into clinical settings, including radiology and drug discovery. The GPU leader said Monday it will collaborate with the American College of Radiology (ACR) to provide clinicians with its Clara AI tool kit. The partnership would allow radiologists to leverage AI techniques for diagnostic imaging using their own clinical data. Read more…

By George Leopold

Digging into MLPerf Benchmark Suite to Inform AI Infrastructure Decisions

April 9, 2019

With machine learning and deep learning storming into the datacenter, the new challenge is optimizing infrastructure choices to support diverse ML and DL workfl Read more…

By John Russell

The Case Against ‘The Case Against Quantum Computing’

January 9, 2019

It’s not easy to be a physicist. Richard Feynman (basically the Jimi Hendrix of physicists) once said: “The first principle is that you must not fool yourse Read more…

By Ben Criger

Why Nvidia Bought Mellanox: ‘Future Datacenters Will Be…Like High Performance Computers’

March 14, 2019

“Future datacenters of all kinds will be built like high performance computers,” said Nvidia CEO Jensen Huang during a phone briefing on Monday after Nvidia revealed scooping up the high performance networking company Mellanox for $6.9 billion. Read more…

By Tiffany Trader

ClusterVision in Bankruptcy, Fate Uncertain

February 13, 2019

ClusterVision, European HPC specialists that have built and installed over 20 Top500-ranked systems in their nearly 17-year history, appear to be in the midst o Read more…

By Tiffany Trader

Intel Reportedly in $6B Bid for Mellanox

January 30, 2019

The latest rumors and reports around an acquisition of Mellanox focus on Intel, which has reportedly offered a $6 billion bid for the high performance interconn Read more…

By Doug Black

It’s Official: Aurora on Track to Be First US Exascale Computer in 2021

March 18, 2019

The U.S. Department of Energy along with Intel and Cray confirmed today that an Intel/Cray supercomputer, "Aurora," capable of sustained performance of one exaf Read more…

By Tiffany Trader

Looking for Light Reading? NSF-backed ‘Comic Books’ Tackle Quantum Computing

January 28, 2019

Still baffled by quantum computing? How about turning to comic books (graphic novels for the well-read among you) for some clarity and a little humor on QC. The Read more…

By John Russell

IBM Quantum Update: Q System One Launch, New Collaborators, and QC Center Plans

January 10, 2019

IBM made three significant quantum computing announcements at CES this week. One was introduction of IBM Q System One; it’s really the integration of IBM’s Read more…

By John Russell

Deep500: ETH Researchers Introduce New Deep Learning Benchmark for HPC

February 5, 2019

ETH researchers have developed a new deep learning benchmarking environment – Deep500 – they say is “the first distributed and reproducible benchmarking s Read more…

By John Russell

Leading Solution Providers

SC 18 Virtual Booth Video Tour

Advania @ SC18 AMD @ SC18
ASRock Rack @ SC18
DDN Storage @ SC18
HPE @ SC18
IBM @ SC18
Lenovo @ SC18 Mellanox Technologies @ SC18
NVIDIA @ SC18
One Stop Systems @ SC18
Oracle @ SC18 Panasas @ SC18
Supermicro @ SC18 SUSE @ SC18 TYAN @ SC18
Verne Global @ SC18

IBM Bets $2B Seeking 1000X AI Hardware Performance Boost

February 7, 2019

For now, AI systems are mostly machine learning-based and “narrow” – powerful as they are by today's standards, they're limited to performing a few, narro Read more…

By Doug Black

The Deep500 – Researchers Tackle an HPC Benchmark for Deep Learning

January 7, 2019

How do you know if an HPC system, particularly a larger-scale system, is well-suited for deep learning workloads? Today, that’s not an easy question to answer Read more…

By John Russell

Arm Unveils Neoverse N1 Platform with up to 128-Cores

February 20, 2019

Following on its Neoverse roadmap announcement last October, Arm today revealed its next-gen Neoverse microarchitecture with compute and throughput-optimized si Read more…

By Tiffany Trader

Intel Launches Cascade Lake Xeons with Up to 56 Cores

April 2, 2019

At Intel's Data-Centric Innovation Day in San Francisco (April 2), the company unveiled its second-generation Xeon Scalable (Cascade Lake) family and debuted it Read more…

By Tiffany Trader

France to Deploy AI-Focused Supercomputer: Jean Zay

January 22, 2019

HPE announced today that it won the contract to build a supercomputer that will drive France’s AI and HPC efforts. The computer will be part of GENCI, the Fre Read more…

By Tiffany Trader

Oil and Gas Supercloud Clears Out Remaining Knights Landing Inventory: All 38,000 Wafers

March 13, 2019

The McCloud HPC service being built by Australia’s DownUnder GeoSolutions (DUG) outside Houston is set to become the largest oil and gas cloud in the world th Read more…

By Tiffany Trader

Intel Extends FPGA Ecosystem with 10nm Agilex

April 11, 2019

The insatiable appetite for higher throughput and lower latency – particularly where edge analytics and AI, network functions, or for a range of datacenter ac Read more…

By Doug Black

UC Berkeley Paper Heralds Rise of Serverless Computing in the Cloud – Do You Agree?

February 13, 2019

Almost exactly ten years to the day from publishing of their widely-read, seminal paper on cloud computing, UC Berkeley researchers have issued another ambitious examination of cloud computing - Cloud Programming Simplified: A Berkeley View on Serverless Computing. The new work heralds the rise of ‘serverless computing’ as the next dominant phase of cloud computing. Read more…

By John Russell

  • arrow
  • Click Here for More Headlines
  • arrow
Do NOT follow this link or you will be banned from the site!
Share This