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FOR IMMEDIATE RELEASE:
SANTA CLARA, CA. – November 7, 2002 – NVIDIA® Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2003 ended October 27, 2002.
For the third quarter of fiscal 2003, revenues increased to $430.3 million, compared to $365.0 million for the third quarter of fiscal 2002, an increase of 18 percent. Net loss for the third quarter of fiscal 2003 was $48.6 million, or $0.32 per diluted share, compared to net income of $41.3 million, or $0.24 per diluted share, for the third quarter of fiscal 2002.
The net loss for the third quarter of fiscal 2003 included a special charge of $61.8 million that resulted from the exchange of certain out-of-the-money employee stock options that had an exercise price equal to or greater than $27.00 per share for fully vested shares of the Company’s common stock. For each stock option tendered, an employee received common stock with a value equal to the number of shares underlying the stock option, multiplied by $3.20. This resulted in the issuance of 3.8 million shares of common stock and the cancellation of approximately 18.8 million options.
Revenues for the nine months ended October 27, 2002 were $1.44 billion, an increase of 66 percent compared to revenues of $865.8 million for the nine months ended October 28, 2001. Net income for the nine months ended October 27, 2002 was $39.9 million, or $0.24 per diluted share, compared to net income of $100.9 million, or $0.60 per diluted share, for the nine months ended October 28, 2001.
“We are very pleased with the performance of our core product families,” stated Jen-Hsun Huang, president and CEO of NVIDIA. “Our mainstream desktop GPUs continue to demonstrate competitive strength, and we are seeing excellent momentum and market share gains in our mobile and platform processor segments. Looking ahead, we are intensely focused on delivering our highly anticipated next generation GPU architecture which will once again redefine the market and break new ground in visual computing.”
NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2003 financial results and current financial prospects today at 2:00 P.M. Pacific Time (5:00 P.M. Eastern Time). To listen to the call, please visit the Investor Relations section of the NVIDIA web site at http://www.nvidia.com/ir. A live web cast (listen-only mode) of the conference call will be available at the NVIDIA investor relations web site and at http://www.streetevents.com. The web cast will be recorded and available for replay until November 14, 2002.
NVIDIA Corporation is a visual computing technology and market leader dedicated to creating products that enhance the interactive experience on consumer and professional computing platforms. Its graphics and communications processors have broad market reach and are incorporated into a wide variety of computing platforms, including consumer digital-media PCs, enterprise PCs, professional workstations, digital content creation systems, notebook PCs, military navigation systems and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 1,400 people worldwide. For more information, visit the company’s web site at www.nvidia.com.
Certain statements in this press release regarding earnings in the third quarter of fiscal 2003, including the statements relating to the Company's expectations for NVIDIA's family of products and market position, 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, manufacturing costs and the pricing of components such as memory, the impact of competitive products and pricing alternatives, changes in industry standards and interfaces, market acceptance of the Company's new products, the Company's dependence on third-party developers and publishers and the impact of litigation and other proceedings. Investors are advised to read the Company's Annual Report on Form 10-K filed on May 14, 2002, particularly those sections entitled "Business Risks," for a fuller discussion of these and other risks and uncertainties.
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