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For the First Nine Months, Company Achieves Record Revenue and Increases Net Income 291 Percent
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FOR IMMEDIATE RELEASE
SANTA CLARA, CA–NOVEMBER 9, 2005–NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2006 ended October 30, 2005.
For the third quarter of fiscal 2006, revenue was $583.4 million, compared to $515.6 million for the third quarter of fiscal 2005, an increase of 13 percent. Operating income for the third quarter of fiscal 2006 experienced 149 percent year-over-year growth to $71.5 million (including a non-recurring charge of $14.2 million for the anticipated settlement of various litigation matters), compared to operating income of $28.8 million for the third quarter of fiscal 2005. Net income for the third quarter of fiscal 2006 was $65.3 million, or $0.36 per diluted share (including a $0.06 per share charge for the anticipated litigation settlements), compared to net income of $25.9 million, or $0.15 per diluted share, for the third quarter of fiscal 2005, a net income increase of 152 percent.
Revenue for the nine months ended October 30, 2005 was a record $1.74 billion, compared to revenue of $1.44 billion for the nine months ended October 24, 2004. Net income for the nine months ended October 30, 2005 was $204.5 million, or $1.13 per diluted share (including a $0.06 per share charge for the anticipated litigation settlements), compared to net income of $52.3 million, or $0.30 per diluted share, for the nine months ended October 24, 2004, a net income increase of 291 percent.
“Two years ago, with gross margins in the high twenties, we set a corporate objective to achieve gross margins in the high thirties. Seven quarters later, we delivered,” stated Jen-Hsun Huang, president and CEO at NVIDIA. “Through cross-functional profit improvement initiatives, we are re-architecting business and operational processes that will drive sustainable advantages going forward.”
Huang added, “Looking ahead, with our GPU and MCP product families continuing to lead the competition, we expect significant growth in our desktop, notebook, and handheld businesses.”
Third Quarter Fiscal 2006 Highlights:
NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2006 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 dial (706) 679-0543. A live Web cast (listen-only mode) of the conference call will be held at the NVIDIA investor relations Web site http://nvidia.com/ir and at http://www.streetevents.com. The Web cast will be recorded and available for replay until the Company’s conference call to discuss its financial results for its fourth quarter fiscal 2006.
NVIDIA Corporation is the worldwide leader in programmable graphics processor technologies. The Company creates innovative, industry-changing products for computing, consumer electronics, and mobile devices. NVIDIA is headquartered in Santa Clara, CA and has offices throughout Asia, Europe, and the Americas. For more information, visit www.nvidia.com.
Certain statements in this press release including, but not limited to, our long-term growth strategies and initiatives, anticipated litigation settlements, charges related to anticipated litigation settlements, our growth in the desktop, notebook and handheld businesses, and the benefits, advantages and improvements resulting from our cross-functional profit improvement initiatives 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, continued market acceptance of new products and technologies, prohibitive pricing of new products and technologies, manufacturing delays or defects, unanticipated expenses or inefficiencies associated with our profit improvement initiatives, continued demand for use of GPUs in devices other than the PC, continued demand for improved GPUs, difficulties in the development of new and enhanced products, the impact of technological development our dependence on third-party manufacturers, general industry trends including cyclical trends in the semiconductor and PC industries, the impact of competition including competitive products and pricing alternatives, slower than expected or unanticipated changes in industry standards and interfaces, complications in the settlement of litigation, unanticipated costs or expenses related to the settlement of litigation and other risks detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-Q for its quarter ended July 31, 2005. These forward-looking statements speak only as of the date of this release. NVIDIA disclaims any obligation to update these forward-looking statements.