NVIDIA to Return $1 Billion to Shareholders in Current Fiscal Year

[Gregster]

NVIDIA to Return $1 Billion to Shareholders in Current Fiscal Year

Thursday, April 11, 2013

NVIDIA today announced that it will return $1 billion this fiscal year to shareholders in the form of stock buybacks and dividend payments, including $100 million in stock being repurchased this quarter.

This will bring to $1.2 billion the total capital returned to shareholders since the company announced its quarterly dividend program in November 2012.



NVIDIA had previously disclosed the return of $200 million in capital to shareholders since November. This includes $100 million in shares repurchased in its fiscal fourth quarter ended Jan. 27, 2013 and $100 million in dividends paid in the current and previous quarters.



The return of a further $1 billion will largely be through a structured stock repurchase program, which includes the $100 million being repurchased in the current quarter. It also includes the company's quarterly dividend of $0.075 per share, which has amounted to about $50 million a quarter.



"NVIDIA's strategies are gaining traction in the market and make us confident in our ability to continue generating cash," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "We are now broadening our program of giving back cash to our shareholders and plan to return a further $1 billion by the end of this fiscal year."



Further details of the plan will be provided next month with the release of NVIDIA's financial results for the first quarter of fiscal 2014 ending April 28, 2013.



About NVIDIA
Since 1993, NVIDIA (NASDAQ: NVDA) has pioneered the art and science of visual computing. The company's technologies are transforming a world of displays into a world of interactive discovery -- for everyone from gamers to scientists, and consumers to enterprise customers. More information at http://nvidianews.nvidia.com and http://blogs.nvidia.com.



Certain statements in this press release including, but not limited to, statements as to: the company's planned return of capital to shareholders and the form of the return; the company's strategies gaining traction; and our ability to generate cash; are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners' products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-K for the fiscal period ended January 27, 2013. Copies of reports filed with the SEC are posted on the company's website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.



© 2013 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

Even with the amount Nvidia charges for a GPU, they appear to be doing well.

 

[Rroff]

Its a strange thing but nVidia still seem to sell even when they have stupidly over-priced GPUs i.e. if you asked most people they'd be of the assumption that the 7950 and 7970 had massively outsold the 670 and 680, even I would have said that without looking at the data - yet the data shows that the 670 outsold both combined *somehow* and infact it stands somewhere at about slightly over 60% share to nVidia and slightly under 40% to AMD depending on which source for the statistics your using. (Which is also roughly the overall ratio for all discrete GPUs for the 2 companies).

 

[chaparral]

Its a strange thing but nVidia still seem to sell even when they have stupidly over-priced GPUs

As the old saying goes....
You get what you pay for........


But even I would say that the titans are way over priced....And they still sell like hot cakes..

 

[Rroff]

Yeah was gonna say, doesn't seem to be a lack of motion in Titan sales despite costing best part of a grand for what is a £700 at best GPU.

 

[TheRealDeal]

Its a strange thing but nVidia still seem to sell even when they have stupidly over-priced GPUs i.e. if you asked most people they'd be of the assumption that the 7950 and 7970 had massively outsold the 670 and 680, even I would have said that without looking at the data - yet the data shows that the 670 outsold both combined *somehow* and infact it stands somewhere at about slightly over 60% share to nVidia and slightly under 40% to AMD depending on which source for the statistics your using. (Which is also roughly the overall ratio for all discrete GPUs for the 2 companies).

Nvidia cards will always sell due to there superior brand name. I think some people would still buy nvidia even if amd were twice as fast due to the nvidia logo being on the card. I think thats why amd are having to push great deals with there cards to simply get there brand name more recognised. Nvidia over the years have plastered there the twimtbp all over most of the big releases which now amd seem to be doing. It wont happen over night but if amd keep up what they are doing it should help there brand catch up.

 

[Rroff]

I think world of warcraft is a lot to blame hah, I notice at work whenever <insert non-GPU-enthusiast general member of the public> WoW player is looking to upgrade their GPU for the next expansion they are almost always talking about nVidia cards as if they are the only graphics cards that exist. I'm guessings the branding is splashed all over that game (not played it myself).

EDIT: Tho they rarely buy high end GPUs, mostly mid-range and lower mid-range.

EDIT2: This post isn't 100% serious - not quite sure how it comes across.

 

[Gregster]

Its a strange thing but nVidia still seem to sell even when they have stupidly over-priced GPUs i.e. if you asked most people they'd be of the assumption that the 7950 and 7970 had massively outsold the 670 and 680, even I would have said that without looking at the data - yet the data shows that the 670 outsold both combined *somehow* and infact it stands somewhere at about slightly over 60% share to nVidia and slightly under 40% to AMD depending on which source for the statistics your using. (Which is also roughly the overall ratio for all discrete GPUs for the 2 companies).

3. Increasing PC Gaming Hardware Demand

AMD (NASDAQ:AMD) is Nvidia’s closest competitor in discrete graphics for PCs – desktops and notebooks. Nvidia has historically been the leader in both these markets and continues to account for a majority share, despite increasing competition from AMD’s GPUs.

Nvidia sells its PC graphic processors to original equipment manufacturers (OEM) and PC gaming enthusiasts who buy GPUs to generate realistic and interactive graphics on PCs. While sales to OEMs have slowed down, the robust PC gaming market led to an increase in Nvidia’s GPU shipments in 2012. Jon Peddie Reasearch valued the PC gaming hardware market at $23.6 billion in 2012, and forecasts the global gaming market to cross $30 billion by 2015. [1]

Massively multiplayer games and growth in cloud gaming continued to drive the PC gaming market in 2012. As per market research firm Newzoo, the global massively mutiplayer games revenues grew 21% in 2012 reaching $13 billion. [2] Cloud gaming is a category of online gaming which allows direct and on-demand streaming of games on a computer. Nvidia has around six partners and is in the process of evaluating new middleware partners who provide cloud gaming to various telcos around the world.

Nvidia’s GeForce is the gamers’ choice of GPU by a margin of almost 2:1. [3] Earlier this year, Nvidia launched “Project Shield”, an Android based portable gaming console which can also be connected to a PC. Project Shield will attract great games to Tegra Zone, a free application available in the Android market, which can then be played on any Tegra powered device. Tegra Zone has already been downloaded 6 million times until now.

http://www.trefis.com/stock/nvda/ar...growth-ahead-on-pc-market-recovery/2013-04-01

Surprising that Nvidia are in more computers by almost 2 -1. I thought the market would have been closer with AMD doing well on the Never Settle bundles.

 

[illuz]

Yeah was gonna say, doesn't seem to be a lack of motion in Titan sales despite costing best part of a grand for what is a £700 at best GPU.

Not only is it gamers buying them, it's companies who use them for their compute power.

The titan IIRC is basically this card:
YOUR BASKET
1 x PNY Nvidia Tesla K20 Workstation Solution Graphics Card - 5GB - GDDR5 SDRAM £2999.99
Total : £3,010.79 (includes shipping : £9.00).




Why pay 3K for it, when you can pay £800-1000

 

[The Slayer_UK]

Not only is it gamers buying them, it's companies who use them for their compute power.

The titan IIRC is basically this card:
YOUR BASKET
1 x PNY Nvidia Tesla K20 Workstation Solution Graphics Card - 5GB - GDDR5 SDRAM £2999.99
Total : £3,010.79 (includes shipping : £9.00).




Why pay 3K for it, when you can pay £800-1000

quick question, are these cards any good for gaming forget price for a moment as i know it would be complete waste of money buying one of these for gaming but im just curious if they could be used for gaming and if so what kind of performance would you get, at a guess i would say you cant as theres things that they add to the gaming cards ( not sure what) but as i said im just curious

 

[spookywillow]

Its a strange thing but nVidia still seem to sell even when they have stupidly over-priced GPUs i.e. if you asked most people they'd be of the assumption that the 7950 and 7970 had massively outsold the 670 and 680, even I would have said that without looking at the data - yet the data shows that the 670 outsold both combined *somehow* and infact it stands somewhere at about slightly over 60% share to nVidia and slightly under 40% to AMD depending on which source for the statistics your using. (Which is also roughly the overall ratio for all discrete GPUs for the 2 companies).

Yeah I agree it's quite shocking tbh, Just looked at the steam hardware survey for just those 3 cards.

NVIDIA GeForce GTX 680....1.01%
NVIDIA GeForce GTX 670....1.33%

ATI Radeon HD 7950...........0.55%
ATI Radeon HD 7970...........0.56%

 

[Stanners]

Someone one said that amd were massively outselling nvidia the other day, I did search for anything on it and could not find it. Does anyone know the actual figures?

 

[andybird123]

quick question, are these cards any good for gaming forget price for a moment as i know it would be complete waste of money buying one of these for gaming but im just curious if they could be used for gaming and if so what kind of performance would you get, at a guess i would say you cant as theres things that they add to the gaming cards ( not sure what) but as i said im just curious

doesn't have any video outputs, so can't run games full stop

 

[andybird123]

Someone one said that amd were massively outselling nvidia the other day, I did search for anything on it and could not find it. Does anyone know the actual figures?

the problem with GPU figures is that they don't provide enough of a breakdown to be certain, GPU includes everything from CPU's with GPU cores through to Titan... they often do AIB stats as well, but again these include everything from a GT610 through to Titan

so anyone on here with a preference for AMD will tell you that these figures are meaningless, as are profit figures

the answer is, we don't know which sells the most, 670/680 or 7950/7970

all we know is that overall, nvidia have the biggest market share, and they make massive profits, compared with AMD who make big losses

 

[TheRealDeal]

Someone one said that amd were massively outselling nvidia the other day, I did search for anything on it and could not find it. Does anyone know the actual figures?

The q1 2013 results have not been released yet but I think amd will have gained some market share as they seem to be really happy at 7 series sales as of late.

 

[CAT-THE-FIFTH]

I quoted the relevant bits.

NVIDIA today announced that it will return $1 billion this fiscal year to shareholders in the form of stock buybacks and dividend payments, including $100 million in stock being repurchased this quarter.

This will bring to $1.2 billion the total capital returned to shareholders since the company announced its quarterly dividend program in November 2012.



NVIDIA had previously disclosed the return of $200 million in capital to shareholders since November. This includes $100 million in shares repurchased in its fiscal fourth quarter ended Jan. 27, 2013 and $100 million in dividends paid in the current and previous quarters.



The return of a further $1 billion will largely be through a structured stock repurchase program, which includes the $100 million being repurchased in the current quarter.

What Nvidia is doing is buying back shares themselves,meaning there are less publically available shares of Nvidia which can be traded.

This is done in general by companies for several purposes. One of them is to protect share prices,if the company thinks the price is too low.

They keep it at the new level and simply increase the divident gained for each share which should help increase the price.

They can then re-issue shares at a later date,when they are at a higher price.

 

[PhysicsMan94]

The reason why many people (including I) opt for nVidia is evidenced by the projects and endeavors they are getting involved in as shown partially by the videos of their annual GTC. Remember that nVidia is generally involved in a lot more than just GPUs for gaming, they support sciences, companies both big and small and generally do a lot of work to advance and save people's lives.

Whilst that may sound like PR nonsense, it is true - and it is one of the reasons I like to support their company by purchasing their GPUs given that they are involved with projects that I feel are important for the progression of science and human society as a whole.

Furthermore, from my experience (and also by reading articles across the net) nVidia graphics cards tend to be more reliable and offer a smoother experience than AMD GPUs given that I've tried both.

 

[CAT-THE-FIFTH]

Furthermore, from my experience (and also by reading articles across the net) nVidia graphics cards tend to be more reliable and offer a smoother experience than AMD GPUs given that I've tried both.

Please don't spread FUD. When it comes to hardware both have had issues,and in many cases it is down to the OEMs,and custom designs anyway not even AMD or Nvidia themselves.

However,Nvidia had to spend between $150 to $200 million due to the issues with a number with the G84 and G86 failures:

http://www.tomshardware.com/news/Nvidia-GPU-failure,6248.html

That was down to the fault of Nvidia themselves. It was a poor design decision.

Edit!!

Not to say that AMD had no hardware issues either,ie, GSOD,etc.

However,more to the point none of them are "more reliable" than the other. Each company has hardware issues.

 

[melmac]

Yeah, I agree with Cat, I read elsewhere that this was done to stop the share price drop after Nvidia announced that their Tegra business would be flat this year after pushing the release of tegra 4 back another quarter.

 

[PhysicsMan94]

Please spread FUD.

Look I can quote-mine too.

See, I didn't attempt to claim that nVidia GPUs are definitely more reliable than their AMD counterparts - just that this is the case from my own experience.

 

[arc@css]

just that this is the case from my own experience.

+1