Nvidia posts first-quarter financials, plans Icera shutdown
Nvidia's first-quarter financial results are in. Revenue was $1.15 billlion, up four percent from the same time last year. Net income fell two percent year-over-year to $134 million, while gross margin rose 1.9 points to 56.7%. Here are the full details:
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In the upcoming quarter, the company will be winding down or selling off its Icera cellular modem business. If nobody steps in to buy Icera, Nvidia will incur a restructuring charge of $100-125 million at some point in the fiscal year. That charge will cover severance and employee termination benefits, tax expenses, and other costs from the shuttering. Nvidia is ditching Icera to focus on areas like deep learning, self-driving cars, and gaming.
Looking into the crystal ball, Nvidia expects revenue of $1.01 billion next quarter, ±2%, while operating expenses are forecast at $474 million. Gross margin is expected to be 55.7%. Those numbers don't reflect the Icera writedown, though.