NVIDIA Corporation Reports 543% Increase in Revenue for Second Quarter of Fiscal 2000
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 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.
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.