Tablet growth pays off for Nvidia

The growth in demand for its graphic chips from the smartphone and tablet market helped boost Nvidia's third quarter numbers and allow the vendor to introduce its first quarterly dividend

The growth in sales of smart phones and tablets helped swell the turnover at graphic chip maker Nvidia and lead it to take the decision to pay the first quarterly dividend in its history.

Compared to Intel, which had to admit in its last set of numbers that its failure so far to crack the tablet market had hit revenues, Nvidia has demonstrated the positive impact being firmly involved in that hardware segment can deliver to turnover and income.

Revenue for the vendor's third quarter increased by 13% to £1.2bn with the consumer activity in smartphones and tablets leading the way, with a 28% increase in the performance of that division.

"Revenue for our Consumer Products Business – which includes Tegra-based smartphone and tablet products, Icera baseband processors and RF transceivers, embedded products, and license, royalty, and other revenue associated with game consoles – was $243.9 million, up 35.7 percent sequentially and 27.6 percent year-over-year," stated the firm.

Net income also climbed by 17% to $209m up from $178.3m in the same period last year producing numbers that have caused the firm to take the step of offering a a quarterly dividend for the first time.

"Investments in our new growth strategies paid off this quarter," said Jen-Hsun Huang, president and CEO of NVIDIA. "Tegra is powering some of the most innovative tablets, phones and cars in the market."

"We are pleased to start paying our shareholders a quarterly cash dividend. We have confidence in our businesses and our continued ability to grow," he added.

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