Nvidia Corporation (NVDA) has reported 120.33 percent jump in profit for the quarter ended Oct. 30, 2016. The company has earned $542 million, or $0.83 a share in the quarter, compared with $246 million, or $0.44 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $570 million, or $0.94 a share compared with $255 million or $0.46 a share, a year ago.
Revenue during the quarter surged 53.56 percent to $2,004 million from $1,305 million in the previous year period. Gross margin for the quarter expanded 279 basis points over the previous year period to 59.03 percent. Total expenses were 68.11 percent of quarterly revenues, down from 81.23 percent for the same period last year. This has led to an improvement of 1311 basis points in operating margin to 31.89 percent.
Operating income for the quarter was $639 million, compared with $245 million in the previous year period.
However, the adjusted operating income for the quarter stood at $708 million compared to $308 million in the prior year period. At the same time, adjusted operating margin improved 1173 basis points in the quarter to 35.33 percent from 23.60 percent in the last year period.
"We had a breakout quarter - record revenue, record margins and record earnings were driven by strength across all product lines," said Jen-Hsun Huang, founder and chief executive officer, NVIDIA. "Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing.
For the fourth-quarter, Nvidia Corporation projects revenue to be $2,100 million.
Working capital increases sharplyNvidia Corporation has recorded an increase in the working capital over the last year. It stood at $6,266 million as at Oct. 30, 2016, up 25.85 percent or $1,287 million from $4,979 million on Oct. 25, 2015. Current ratio was at 4.07 as on Oct. 30, 2016, down from 6.82 on Oct. 25, 2015. Cash conversion cycle (CCC) has decreased to 24 days for the quarter from 60 days for the last year period. Days sales outstanding went down to 31 days for the quarter compared with 37 days for the same period last year.
Days inventory outstanding has decreased to 38 days for the quarter compared with 69 days for the previous year period. At the same time, days payable outstanding went down to 44 days for the quarter from 46 for the same period last year.
Debt increases substantiallyNvidia Corporation has witnessed an increase in total debt over the last one year. It stood at $3,000 million as on Oct. 30, 2016, up 111.71 percent or $1,583 million from $1,417 million on Oct. 25, 2015. Short-term debt stood at $1,011 million as on Oct. 30, 2016. Total debt was 31.21 percent of total assets as on Oct. 30, 2016, compared with 19.75 percent on Oct. 25, 2015. Debt to equity ratio was at 0.56 as on Oct. 30, 2016, up from 0.32 as on Oct. 25, 2015. Interest coverage ratio improved to 39.94 for the quarter from 20.42 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
