Surfer Chick

As much as I would like to be at SIGGRAPH, one of the reasons to visit would be to see Lenovo’s latest launch of their Haswell-E Desktop Workstation series. One of the key elements to the workstation market in recent quarters is to develop a professional-grade system that can encompass all the critical industries that require horsepower under the desk: engineering, media, energy, medical, finance and others. These systems have to be verified with industry standards to even be considered by these markets, but also the shift to Haswell-E and DDR4 will be an all-important factor for those that rely on speed and performance. One of the issues that these system manufacturers have is to define themselves in the market – Lenovo is already a big player in many other PC-related industries, so listening to customers is all important when trying to develop market share.

The new ThinkStation P series will be based around the LGA2011-3 socket, using Xeon processors and high capacity DDR4 memory. Given the nature of the platform, we can assume that the DDR4 will be ECC by default. For GPU Compute Quadro is being used, with the top line P900 model supporting dual Xeons alongside up to three Quadro K6000 graphics cards and up to 14 storage devices. All the P series will be certified to work on all key ISV applications, and via Intel they are quoted as supporting Thunderbolt 2, which should make for interesting reading regarding the PCIe lane distribution or PLX chip distribution depending if it is onboard or via an optional add-in-card.

In terms of that all important product differentiation, the P series will use ‘tri-channel cooling’ and air baffles to direct the cool air immediately to the component in question and then out of the chassis without touching other components. This essentially becomes a more integrated solution than the compartmentalized chassis we see in the consumer market, except when the company makes the whole system, the company can control the experience to a much tighter level.

The P series also runs a trio of ‘FLEX’ themed additions. The FLEX Bay is designed to support an optical drive or the FLEX module which can hold an ultraslim ODD, media reader or firewire hub. The FLEX Tray on the P900 allows each of the seven HDD trays to support either one 3.5” drive or two 2.5” drives, hence the fourteen drive support mentioned earlier. The FLEX Connector is a mezzanine card allowing users to add in storage related cards without sacrificing rear PCIe slots, meaning that this connector brings this extra card away from the other devices, presumably at right angles. Lenovo is also wanting to promote their tool-less power supply removal without having to adjust the cables on the P700 and P500, which suggests that the PSU connects into a daughter PCB with all the connectors pre-connected, allowing the PSU to be replaced easily.

Lenovo is also adorning their components with QR codes so if a user has an issue the code can be scanned such that the user will be directed to the specific webpage dealing with the component. The chassis will have integrated handles for easier movement or rack mounting. Lenovo is also promoting its diagnostic port, allowing the user to plug in an Android smartphone or tablet via USB for system analysis using the ThinkStation app.

Until Haswell-E and the motherboard chipsets are officially announced, Lenovo cannot unfortunately say more about the specifications regarding the series beyond memory capacities, DRAM support and power supply numbers, however they do seem confident in their ability to provide support and an experience to their ThinkStation users. We have been offered a review sample later in the year when we can test some of these features.

Source: Lenovo

Addition: Ryan recently met with Lenovo last week where we were allowed to take some images of the chassis and design:

On Thursday August 7^th, NVIDIA released their results for the second quarter of their fiscal year 2015. Year-over-year, they had an excellent quarter based on strong growth in the PC GPU market, Datacenter and Cloud (GRID), and mobile with the Tegra line.

GAAP Revenue for the quarter came in at $1.103 billion which is flat from Q1 2015, but up 13% from $977 million at the same time last year. Gross margin for Q2 was up both sequentially and year-over-year at 56.1%. Net income for the quarter came in at $128 million, down 6% from Q1 and up 33% from Q2 2014. These numbers resulted in diluted earnings per share of $0.22, down 8% from Q1 and up 38% from Q2 last year but beating analysts expectations.

NVIDIA Q2 2015 Financial Results (GAAP)
In millions except EPS	Q2'2015	Q1'2015	Q2'2014	Q/Q	Y/Y
Revenue	$1103	$1103	$977	0%	+13%
Gross Margin	56.1%	54.8%	55.8%	+1.3%	+0.3%
Operating Expenses	$456	$453	$440	+1%	+4%
Net Income	$128	$137	$96	-6%	+33%
EPS	$0.22	$0.24	$0.16	-8%	+38%

 

NVIDIA Q2 2015 Financial Results (Non-GAAP)
In millions except EPS	Q2'2015	Q1'2015	Q2'2014	Q/Q	Y/Y
Revenue	$1103	$1103	$977	0%	+13%
Gross Margin	56.4%	55.1%	56.3%	+1.3%	+0.1%
Operating Expenses	$411	$411	$401	0%	+2%
Net Income	$173	$166	$133	+4%	+30%
EPS	$0.30	$0.29	$0.23	+3%	+30%

The GPU business is the primary source of revenue for NVIDIA, and includes GeForce for desktops and notebook PCs, Quadro for workstations, Tesla for high performance computing, and GRID for cloud-enabled graphic solutions. This quarter, the GPU revenue rose 2% over Q2 2014 with $878 million in revenue. This is down 2% from the previous quarter due to the seasonal decline of consumer PCs. Revenue from the PC GPU line rose 10% over last year and was helped by the introduction of the GeForce GTX 750 and 750 Ti Maxwell based boards. They are also seeing growth in the Tesla datacenter business. Quadro revenue also increased, citing strong growth in mobile workstations.

The mobile side of NVIDIA hasn’t seen as many product wins compared to Qualcomm, but the Tegra business is still growing strongly for NVIDIA. Tegra revenue was up 14% from Q1 2015, and 200% from Q2 2014 with a total revenue of $159 million for the quarter. Tegra continues to have strong demand in the automotive infotainment sector, with a 74% growth in that market year-over-year. This could be a lucrative market, with automotive systems generally locking in for at least several years compared to the mobile sector which might see a product replaced in less than a single year. The Tegra K1 has just come to market though, and it has shown itself to be a capable performer and may win some more designs soon.

The last avenue of income for NVIDIA is $66 million per quarter in a licensing deal with Intel.

NVIDIA Quarterly Revenue Comparison (GAAP)
In millions	Q2'2015	Q1'2015	Q2'2014	Q/Q	Y/Y
GPU	$878	$898	$858	-2%	+2%
Tegra Processor	$159	$139	$53	+14%	+200%
Other	$66	$66	$66	flat	flat

The company projected this quarter to be flat on revenue as compared to Q1, and they were exactly right. Projections for Q3 2015 are for revenue of $1.2 billion plus or minus 2%.

During the quarter, $47 million was paid in dividends and NVIDIA purchased 6.8 million shares back from investors. This brings them to $594 million of the $1 billion promised to shareholders for FY 2015. The next dividend of $0.085 per share will be paid on September 12^th to all stockholders of record as of August 21^st.

It was an excellent quarter for NVIDIA, and their stock prices jumped after the numbers were released. All segments of the company are growing at the moment, and with the recent release of the Tegra K1 they can only be hoping to have another strong quarter of mobile grown in Q3 after a great 200% jump in Tegra revenue since last year. The stronger than expected PC sales have helped their biggest business as well, with the GPU division up 2%. CEO Jen-Hsun Huang has worked to bring the company a more diversified portfolio, and with the recent gains in mobile and datacenter computing, the company has certainly had some recent success.