Nvidia's financial results are in for the third quarter of its fiscal 2016, and the numbers are solid. The company made $245 million on revenue of $1.305 billion, up 15% and 7% over this time last year. Nvidia says the growth came primarily from GeForce GPU sales for gaming and automotive applications.
Here's a tabular summary of the results:
|Q3 FY 2016||Q3 FY 2015||Change (YOY)|
|Revenue||$1.305 billion||$1.225 billion||up 7%|
|Operating income||$245 million||$213 million||up 14%|
|Net income||$246 million||$173 million||up 42%|
|Gross margin||56.3%||55.2%||up 1.1%|
Nvidia made most of its revenue from GPU sales. The company sold $1.1 billion of graphics processors in the quarter, a 12% increase from a year ago. Gaming GPU revenue increased 40% from a year ago, while Quadro chips took in $190 million, an 8% decrease year-over-year. Datacenter-targeted products like Tesla and Grid accounted for $80 million in revenue, also down 8% from a year ago.
Tegra processors took in $129 million in revenue, a 23% year-on-year decline. Nvidia says that result comes from the end-of-life of Tegra chips in OEM smartphones and tablets, though the drop was offset by "Tegra development services" and the automotive business. The company says it made $79 million in revenue from automotive products like infotainment systems and product-development contracts, a 50% year-on-year increase.
For the fourth quarter of its fiscal 2016, Nvidia expects $1.3 billion in revenue, plus or minus two percent. GAAP gross margins are expected to be 57%, plus or minus half a percent, while GAAP operating expenses are expected to come in at $503 million. Those projected numbers exclude restructuring charges of $25 million to $35 million expected in the upcoming quarter.