NVIDIA Reports Record Revenue and Profit
Fourth Quarter Revenue Grows 178 Percent
Revenue for the fiscal fourth quarter ended January 31, 1999 was $65.5 million, an increase of 178 percent compared to revenue of $23.5 million for the fourth quarter ended December 31, 1997. Net income for the fiscal fourth quarter was $7.7 million, compared to $1.4 million for the fourth quarter of 1997. Diluted net income per share for the fiscal fourth quarter ended January 31, 1999 was $0.27, compared to $0.06 for the fourth quarter ended December 31, 1997.
Revenue for the fiscal year ended January 31, 1999 was $158.2 million, an increase of 444 percent compared to revenue of $29.1 million for the year ended December 31, 1997. Net income for the year ended January 31, 1999 was $4.1 million, compared to a net loss of $(3.6) million for the previous fiscal year. Diluted net income per share for the fiscal year ended January 31, 1999 was $0.15, compared to a diluted net loss per share of $(0.28) for the year ended December 31, 1997.
Financial comparisons reflect that effective February 1, 1998, the Company changed its fiscal year end to a 52- or 53-week year ending on the last Sunday in January. The Company elected not to restate its previous reporting periods ending December 31.
"NVIDIA's strong financial results reflect the dedication of our employees and our successful strategy to gain market share by consistently delivering award-winning 3D technology to the world's top PC OEMs. Graphics is a key differentiator in PCs today, as evidenced by our customers' success in winning over 200 industry awards," commented Jen-Hsun Huang, president and CEO of NVIDIA.
"NVIDIA enters fiscal year 2000 with strong momentum and a pipeline of exciting new products. Our intense focus on technology leadership and the investments we made last year in our infrastructure have strengthened our Company. We believe we are well positioned for continued growth this coming year and are excited about the opportunities ahead."
In January 1999 NVIDIA completed an initial public offering of 3.5 million shares, raising $39 million for general corporate purposes including working capital. In February 1999 the Company received an additional $5.9 million when its underwriters in the initial public offering exercised an option to sell an additional 525,000 shares. At January 31, 1999 the Company had cash and short-term investments of $50.3 million and total assets of $113.3 million. Total debt of $8.4 million consisted of a $5.0 million line of credit and $3.4 million in short and long-term capital lease obligations.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties and actual results may differ materially. Factors that may affect NVIDIA's actual results include the impact of competitive products and pricing, technological changes in products and components, the ability to timely and successfully develop and produce in volume new products and modifications to existing products, market acceptance of new products and modifications to existing products and conditions in the PC market. Further information on factors that could affect the financial results of NVIDIA is included in the Registration Statement on Form S-1, dated January 22, 1999, filed with the Securities and Exchange Commission.