NVIDIA Reports Operating Results for the Fourth Quarter and Fiscal Year 2003
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FOR IMMEDIATE RELEASE:
SANTA CLARA, CA. – FEBRUARY 13, 2003 – NVIDIA® Corporation (Nasdaq: NVDA) today reported financial results for the fourth quarter of fiscal 2003 and the fiscal year ended January 26, 2003.
For the fourth quarter of fiscal 2003, revenues were $469.0 million, compared to $503.7 million for the fourth quarter of fiscal 2002. Net income for the fourth quarter of fiscal 2003 was $50.9 million, or $0.30 per diluted share, compared to net income of $76.0 million, or $0.43 per diluted share, for the fourth quarter of fiscal 2002.
On February 6, 2003, NVIDIA and Microsoft announced the settlement of all issues related to pricing of the Microsoft Xbox GPU and MCP chips. As a result of the settlement NVIDIA recognized $40.4 million in additional revenue in the fourth quarter of fiscal year 2003. Of the $40.4 million, revenues associated with unit sales in the fourth quarter of fiscal 2003 were $4.8 million and revenues associated with unit sales in prior quarters were $35.6 million.
Revenues for the fiscal year ended January 26, 2003 were $1.91 billion, an increase of 39 percent compared to revenues of $1.37 billion for the fiscal year ended January 27, 2002. Net income for the fiscal year ended January 26, 2003 was $90.8 million, or $0.54 per diluted share, compared to net income of $176.9 million, or $1.03 per diluted share, for the fiscal year ended January 27, 2002.
“As a result of growth in each of our businesses, we executed on a solid quarter and banner year,” stated Jen-Hsun Huang, president and CEO of NVIDIA. “Our results demonstrate that we have developed into a multi-faceted business, with product leadership in each of the segments that we serve – desktop GPU, mobile GPU, workstations, consumer electronics, and core logic. Our investments this year in GeForce FX, Cg, the nForce MCP, and the Media Center PC have put us in a position to achieve yet another strong year.”
NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter and fiscal year 2003 financial results and current financial prospects today at 1:30 P.M. Pacific Time (4:30 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 held at the NVIDIA investor relations web site and at http://www.streetevents.com. The web cast will be recorded and available for replay until February 20, 2003.
Certain statements in this press release regarding earnings in the fourth 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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