For Further Information Contact:
Mary Ann Allencourt
Investor Relations Specialist
Public Relations Manager
For Immediate Release
SANTA CLARA, CA – MAY 16, 2000 – NVIDIA™ Corporation (Nasdaq: NVDA) today reported record revenues and earnings for the first quarter of fiscal 2001 ended April 30, 2000.
For the first quarter of fiscal 2001, revenues increased to $148.5 million, compared to $71.0 million for the first quarter of fiscal 2000, an increase of 109 percent. Operating income for the first quarter was $25.6 million, compared to $9.0 million in the first quarter of fiscal 2000. Net income for the first quarter of fiscal 2001 was $18.3 million, or $0.47 per fully diluted share, compared to $6.3 million, or $0.18 per fully diluted share for the first quarter of fiscal 2000.
In addition, NVIDIA's Board of Directors authorized a two-for-one stock split to be effected through a 100% stock dividend. Shares resulting from the split are expected to be distributed by the transfer agent on or about June 26, 2000 to all stockholders of record as of June 12, 2000.
"The first quarter of fiscal 2001 was a landmark quarter for NVIDIA," stated Jen-Hsun Huang, president and CEO at NVIDIA. "We continued to strengthen our technology leadership position with the introduction of the GeForce2 GTS at WinHEC 2000 in New Orleans in April. With our Tier One OEM and add-in card partners, we reached a new industry milestone by delivering GeForce2 GTS-based products to market only three days after its introduction.
"In March 2000, we officially announced our entry into the consumer electronics market with Microsoft's launch of the X-Box game console. Microsoft selected NVIDIA to build both the custom graphics processing unit and the media/communications processor for this revolutionary product. X-Box represents a radical new platform for the digital entertainment market, and we are very excited to be playing a major role.
"As our results demonstrate, we continue to raise the competitive barriers with our new products and remain extremely focused on execution as we build a sustainable and successful franchise."
For more financial information, please access the investor relations' portion of NVIDIA's web site at http://www.nvidia.com.
The computing industry recognizes NVIDIA as a global leader in advanced graphics processing technology for mainstream platforms, honoring the company with the most awards in the history of the PC graphics industry. The breadth of the NVIDIA product family enables gripping multimedia experiences for the entire desktop computer market from workstations to internet-enabled appliances. In use by large corporations, small- to medium-sized businesses, and home-based consumers, NVIDIA products are used by the top PC OEMs, add-in card designers, and system builders worldwide. NVIDIA graphics processors deliver superior performance and crisp visual quality for PC based applications such as manufacturing, science, e-business, entertainment, and education. For more information, please visit the company's Web site at http://www.nvidia.com.
Certain statements in this press release, including the statements relating to the Company's performance expectations for NVIDIA's family of products and expectations of continued revenue 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, manufacturing and other delays relating to new products, difficulties in the fabrication process, and dependence of the Company on third-party manufacturers, general industry trends including cyclical trends in the PC and semiconductor industries, the impact of competitive products and pricing alternatives, market acceptance of the Company's new products, and the Company's dependence on third-party developers and publishers. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Factors Affecting Operating Results," for a fuller discussion of these and other risks and uncertainties.
Notes to Editors: GeForce 256 and GeForce2 GTS should be written with an uppercase G and F, all other letters lowercase, and a space between GeForce and 256 as well as a space between GeForce2 and GTS. GTS is ALL CAPITALS. The recommended format for Vanta and Quadro is title case. The recommended format for NVIDIA, RIVA 128, RIVA 128ZX, NVIDIA TNT, and NVIDIA TNT2 is ALL CAPITALS.
NVIDIA, the NVIDIA logo, NVIDIA TNT, NVIDIA TNT2, Vanta, Quadro, GeForce 256, and GeForce2 GTS are trademarks of NVIDIA Corporation. Other company and product names may be trademarks of the respective companies with which they are associated.