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SANTA CLARA, CA – AUGUST 18, 1999 – NVIDIA™ Corporation (Nasdaq: NVDA) today reported operating results and profit for its second quarter of fiscal 2000 and for the six months ended August 1, 1999.
Revenue for the second quarter of fiscal 2000 ended August 1, 1999 was $78.0 million, an increase of 543 percent compared to revenue of $12.1 million for the second quarter of fiscal 1999, which ended July 26, 1998. Net income for the second fiscal quarter was $6.7 million, compared to a net loss of $(9.7) million for the second quarter of fiscal 1999. Diluted net income per share for the second quarter of fiscal 2000 was $0.19, compared to a diluted net loss of $(0.68) per share for the second quarter of fiscal 1999.
Revenue for the six months ended August 1, 1999 was $149.0 million, an increase of 269 percent compared to revenue of $40.4 million for the six months ended July 26, 1998. Net income for the six months ended August 1, 1999 was $12.9 million, compared to a net loss of $(10.7) million for the six months ended July 26, 1998. Diluted net income per share for the first half of fiscal 2000 was $0.37, compared to a diluted net loss per share of $(0.75) for the first half of fiscal 1999.
According to Jen-Hsun Huang, president and CEO of NVIDIA, results for the second quarter demonstrated the strength of the company's product line and the quality of its execution.
"I am very pleased with our accomplishments in the second fiscal quarter and in achieving our fourth record quarter in a row. The second fiscal quarter was also a strategically important quarter for NVIDIA. We transitioned from a single product offering to a broad range of products that span the enthusiast, workstation, performance, and mainstream PC markets," said Huang, who won Ernst & Young LLP's Entrepreneur of the Year Award in June 1999.
"As we enter the third quarter, we are enthusiastic about the outlook for the remainder of this fiscal year. The momentum of the RIVA TNT2™ family of processors is very strong, and we are planning to announce an industry-changing next-generation product. All of us at NVIDIA are fully committed to staying intensely focused on execution and continue our march to become the dominant supplier of desktop PC graphics. I am confident that our recent performance and on-going endeavors will create a strong position for NVIDIA in the future."
Introduced in March, NVIDIA's RIVA TNT2 Ultra set a new standard for performance and quality by combining best-of-class 3D and 2D performance with 32-bit true color rendering, 32-bit Z-buffer and a 32MB frame buffer. TNT2's performance leadership has been validated through numerous benchmark round-ups. According to a review published by Mercury Research in July, for all six test runs of Quake3 Arena, three TNT2 Ultra-based accelerators took the top three spots. Dean McCarron, senior analyst, Mercury Research stated that "three boards built around NVIDIA's RIVA TNT2 Ultra bested the competition in our latest testing round," in Ziff-Davis' WinBench® 99 benchmark.
The RIVA TNT2 has continued NVIDIA's tradition of success with the top tier PC OEMs. NVIDIA has secured OEM design wins with Dell, Compaq, IBM, Hewlett-Packard, Micron, Gateway, Acer, ABIT, ASUSTeK, Leadtek and others, strengthening its leadership in delivering high performance solutions to the world's top PC manufacturers. The TNT2 was also adopted by top workstation suppliers, including: Dell, Compaq, IBM, Hewlett-Packard and Siemens. And since its retail availability in June, products based on TNT2 Ultra have been the only graphics products consistently in the Top 10 on CNET Shopper's 100 Most Popular Products.
Also in the quarter, NVIDIA announced a broad patent cross license and strategic partnership with Silicon Graphics, Inc. (SGI). This major initiative between the two companies is expected to bring a significant price/performance discontinuity to the visualization market and accelerate product time-to-market of groundbreaking products. Under the terms of the partnership, SGI will incorporate NVIDIA's graphics technology into new desktop graphics systems.
For more financial information, please access the investor relations portion of the Company's web site at http://www.nvidia.com.
NVIDIA Corporation (Nasdaq: NVDA), the world's leading supplier of performance 3D graphics processors, is the only independent top-to-bottom supplier of 3D graphics solutions for mainstream PCs. NVIDIA designs, markets and sells an award-winning family of 3D processors, delivering industry-leading performance and visual quality for a broad range of PC-based applications, including enterprise visualization, e-commerce, e-business, education and entertainment. Used by the top PC OEMs in the world, NVIDIA's products are distributed through a worldwide channel that includes PC OEM, add-in card and motherboard partners in Europe, Asia and North America. 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: Please note that the recommended way of writing NVIDIA, RIVA 128, RIVA 128ZX, RIVA TNT and RIVA TNT2 is all CAPITALS.
NVIDIA, the NVIDIA logo, RIVA TNT, RIVA TNT2 and NVIDIA Vanta are trademarks of NVIDIA Corporation. RIVA, RIVA 128 and RIVA 128ZX are trademarks of NVIDIA Corporation and STMicroelectronics. Other company and product names may be trademarks or registered trademarks of the respective companies with which they are associated.
A full-text copy of this announcement may be obtained by calling the Company's fax-on-demand line at (800) 925-4305. It may also be printed from NVIDIA's web site at http://www.nvidia.com.