Company Achieves Record Annual Revenue Exceeding $2 Billion, Quarterly Net Income Increases 99 Percent Year-Over-Year
NVIDIA Reports Operating Results for the Fourth Quarter and Fiscal Year 2005
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FOR IMMEDIATE RELEASE
SANTA CLARA, CA─February 17, 2005─NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the fourth quarter of fiscal 2005 and the fiscal year ended January 30, 2005.
For the fourth quarter of fiscal 2005, revenue increased to $566.5 million, compared to $472.1 million for the fourth quarter of fiscal 2004, an increase of 20 percent. Net income for the fourth quarter of fiscal 2005 was $48.0 million, or $0.27 per diluted share, compared to net income of $24.2 million, or $0.14 per diluted share, for the fourth quarter of fiscal 2004, an increase of 99 percent.
Revenue for the fiscal year ended January 30, 2005 was $2.01 billion, compared to revenue of $1.82 billion for the fiscal year ended January 25, 2004. Net income for the fiscal year ended January 30, 2005 was $100.4 million, or $0.57 per diluted share, compared to net income of $74.4 million, or $0.43 per diluted share, for the fiscal year ended January 25, 2004.
"2004 was a turning point for NVIDIA. We produced a record number of market-leading products and platform-changing initiatives, and set the stage for growth in the coming years," stated Jen-Hsun Huang, president and CEO of NVIDIA. "Besides achieving record revenue, we continued to expand our market footprint beyond PC graphics and now have growing businesses in all of the major digital media device markets – PCs, cell phones, and consumer electronics."
Huang added, "Our results also reflected a major focus across the company to drive profitable growth and improve gross margins back toward historical levels."
Fourth Quarter Fiscal 2005 Highlights
- NVIDIA and Sony Computer Entertainment Incorporated (SCEI) entered into a collaboration to jointly develop graphics and computer entertainment technology for the highly-anticipated next-generation PlayStation computer entertainment system.
- NVIDIA and Intel signed a broad, multi-year patent cross license agreement and front-side bus license agreement that enables the Company to deliver the NVIDIA nForce™ platform technology on Intel-based systems.
- NVIDIA launched and delivered volume production of four new desktop and notebook GeForce™ 6 graphics processing units (GPUs) designed for the value, mid-range and enthusiast segments including the GeForce 6200 with TurboCache™ technology, Go 6800, Go 6600 and Go 6200. Unit shipments of all GeForce 6 GPUs more than doubled over the previous quarter.
- The first NVIDIA® SLI™-Ready multi-GPU motherboard, the ASUS A8N-SLI, became available for the AMD64 platform. Nearly every enthusiast system builder is now shipping NVIDIA SLI technology-based systems. NVIDIA SLI technology earned the Popular Science "Best of What's New" Award and Maximum PC’s coveted Gear of the Year Award.
- NVIDIA extended its share from 64 percent to 67 percent from the third quarter of calendar 2004 to the fourth quarter of calendar 2004 in the Performance DX9 Desktop GPU segment, and gained 3 percent during the fourth calendar quarter in the Total Desktop and Notebook segment according to Mercury Research’s Fourth Quarter PC Graphics Report 2004.
- The NVIDIA nForce4 media and communication processor (MCP) set record sales growth during the fourth quarter by shipping nearly one million NVIDIA nForce4 MCPs since the product’s availability in December 2004. From the third calendar quarter of 2004 to the fourth calendar quarter of 2004, NVIDIA nForce MCPs increased their share of the AMD64 segment to 48%, as reported by Mercury Research for the quarter ending December 31, 2004. The NVIDIA nForce product line also achieved record revenue for the fourth quarter.
- NVIDIA announced in February 2005 the new GoForce 3D 4800 wireless media processor (WMP) which integrates highly-realistic 3D graphics, multi-megapixel still imaging, and high-quality video capture and playback. The 4800 includes a hardware encoder called “NVIDIA FotoPack™” technology which automatically optimizes JPEG compression to allow users to store up to three times more photos in the limited memory space on cell phones. The WMP business unit also achieved record revenue for the fourth quarter.
- NVIDIA announced the NVIDIA nForce Professional MCP, the industry’s only PCI-Express core-logic family for AMD Opteron processor-based server and workstation platforms. The NVIDIA nForce Professional family includes the 2200 and 2050 MCP.
- NVIDIA announced PureVideo™ technology, a combination of dedicated video processing hardware and software technologies designed to accelerate the playback of MPEG-2 and high-definition video content at home theater levels of quality.
NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal year 2005 financial results and current financial prospects today at 2:00 PM Pacific Time (5:00 PM Eastern Time). To listen to the call, please dial (706) 679-0543; no password is required. A live web cast (listen-only mode) of the conference call will be held at the NVIDIA investor relations web site http://nvidia.com/ir
and at http://www.streetevents.com
. The web cast will be recorded and available for replay until the Company’s conference call to discuss its financial results for its first quarter fiscal 2006.
NVIDIA Corporation is a worldwide leader in graphics and digital media processors. The Company’s products enhance the end-user experience on consumer and professional computing devices. NVIDIA graphics processing units (GPUs), media and communications processors (MCPs), and wireless media processors (WMPs) have broad market reach and are incorporated into a variety of platforms, including consumer and enterprise PCs, notebooks, workstations, PDAs, mobile phones, and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 2,000 people worldwide. For more information, visit the Company’s Web site at www.nvidia.com
Certain statements in this press release including, but not limited to, statements as to expansion of market footprint beyond PC graphics, profitable growth, gross margins and overall growth are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, market acceptance of our new products, manufacturing and other delays relating to our current or new products, the impact of technological development and competition, unexpected expenditures or decreases in average selling prices, difficulties in the fabrication process, our dependence on third-party manufacturers, general industry trends including cyclical trends in the PC, handheld and semiconductor industries, manufacturing costs and the pricing of components, the impact of competitive products and pricing alternatives, changes in industry standards and interfaces, our dependence on third-party developers and publishers and the impact and cost of litigation and other proceedings and other risks detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-Q for the quarter ended October 24, 2004.These forward-looking statements speak only as of the date of this release. NVIDIA disclaims any obligation to update these forward-looking statements.
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