'We gave it our best shot' Nvidia CEO tells Wall Street after failed Arm deal
'We gave it our best shot. But the headwinds were too strong and we could not give regulators the comfort they needed to approve our deal'
"The parties agreed to terminate because of significant regulatory challenges preventing the consummation of the transaction," Colette Kress, $NVIDIA (NVDA.US)$ 's chief financial officer, noted [PDF] alongside the release of her company's Q4 figures this week.
The chip goliath also disclosed in its fourth-quarter financial results on Wednesday that it will write off $1.36bn as a result walking away from the acquisition. This operating expense will be accounted for in the first quarter of Nvidia's fiscal 2023, which began on February 1.
'The year-on-year increases for the quarter and fiscal year reflect higher sales of GeForce GPUs'
A little under half of the quarterly revenue came from sales of gaming GPUs, which totaled $3.4bn, up by 37 per cent from the year-ago quarter. The rest was mostly data-center-grade accelerators ($3.3bn) and professional graphics products ($640m).
GPUs have been in short supply with prices going up and available inventories being swiped by scalpers and crypto-miners. Nvidia claimed it was trying to push GPUs into the hands of gamers, and away from cryptocurrency mining, with its Lite Hash Rate feature to discourage mining use.
"Our GPUs are capable of cryptocurrency mining, though we have limited visibility into how much this impacts our overall GPU demand. Volatility in the cryptocurrency market including changes in the prices of cryptocurrencies or method of verifying transactions, such as proof of work or proof of stake, can impact demand for our products and our ability to accurately estimate it," Kress wrote.
For the full fiscal year, Nvidia reported revenue of $26.9bn, which was up by 61 per cent year-over-year. Net profit tallied $9.75bn, up by 125 per cent.
Nvidia is projecting first-quarter fiscal 2023 revenue to be about $8.1bn, plus or minus two per cent. That $1.36bn Arm write-off will appear as an operating expense. To put it in context, Nvidia's operating expenses for its fourth quarter were $2bn, already up 23 per cent year on year.
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