Semiconductor Company Nvidia Corp. (NASDAQ: NVDA) posted a 44 percent rise in quarterly profit as the firm's operational margins improved, but missed analyst expectations.
The chipmaker said that net income rose to $132.3 million, or 33 cents per share. Revenue also increased 24 percent to $844.3 million, compared to $681.8 million in the same period last year.
Analysts expected profit of 39 cents per share according to Thomson Financial.
We maintained leadership positions in each of our core product lines, which positions us for continued growth throughout the year, said Jen-Hsun Huang, Nvidiaâ€™s president and CEO in a statement.
Nvidia makes specialized graphics hardware that powers cell phones, computers, and some game consoles, including Microsoft's original Xbox and Sony's Playstation 3 game console.
Its GeForce graphics chips, used in notebook computers, saw revenues grow 71 percent for the year. Likewise, its workstation and motherboard chip divisions saw 39 and 25 percent growth, respectively.
The firm also tightened its operations across the company. Gross margins increased to 45.4 percent, a new company high, it said.
Shares of the Santa Clara based company fell 62 cents, or $1.85 percent to close at $32.82 on Thursday, before reporting its quarterly results.