Business is booming at NVIDIA this year. The graphics card manufacturer released its quarterly financial statement that reports a record profit for the third quarter 2014.
The Singapore-based vendor recorded a profit of $US1.23 billion, up from $US1.05 billion the previous year. The firm also experienced a profit increase from the previous quarter this year of 15 per cent.
Revenue for the first three quarters of the current fiscal year was a record $US3.43 billion, up 15 per cent from $US2.99 billion in the previous corresponding period.
NVIDIA president and chief executive, Jen-Hsun Huang, said the firm's focus on creating visual computing platforms for datacentre, mobile and PC drove record revenue in the quarter.
"Growth drivers have kicked in for us on several fronts. High-performance computing, virtualisation and web service providers have created demand for our GPU-accelerated datacentre platforms. Automakers are using Tegra to help reinvent the driving experience. And our new Maxwell architecture is a giant leap forward that has triggered a major upgrade cycle by PC gamers."
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During the reporting period, NVIDIA paid $US46 million in cash dividends and received 16.8 million shares under a $US310 million structured repurchase agreement it entered into in the quarter. During the first three quarters of fiscal 2015, the company paid $US140 million in cash dividends and repurchased 44.2 million shares. As a result, the company has returned to shareholders $US950 million in the first three quarters of fiscal 2015.
The firm recently released its newest iteration of graphics cards for the consumer market, the 900 series. With sales of the cards being slower than expected, profits are due mainly to its foray into datacentre. NVIDIA expects the current profit trend to continue in the following quarters and hence is expecting the consumer side of the business to experience a resurgence.