NVIDIA Reports Results for First Quarter 2008
Company Achieves 24 Percent Revenue Growth and 44 Percent Net Income Growth Year-Over-Year; Gross Margins Reach New High of 45 Percent
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FOR IMMEDIATE RELEASE
|Jen-Hsun Huang - Co-Founder, President, and Chief Executive Officer
|Marv Burkett - Chief Financial Officer
| NVIDIA Corporate Headquarters, Santa Clara, California
SANTA CLARA, CA—MAY 10, 2007—NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the first quarter of fiscal 2008 ended April 29, 2007.
For the first quarter of fiscal 2008 revenues were $844.3 million, compared to $681.8 million for the first quarter of fiscal 2007, an increase of 24 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2008 was $132.3 million, or $0.33 per diluted share, an increase of 44 percent compared to the first quarter of fiscal 2007.
Non-GAAP net income for the first quarter of fiscal 2008, which excludes stock-based compensation charges and the associated tax impact, was $164.4 million, or $0.42 per diluted share, an increase of 48 percent compared to the first quarter of fiscal 2007.
"Compared to last year, first quarter revenue grew 24 percent and non-GAAP net income increased 48 percent. With our continued focused on operational excellence, gross margins achieved a company record. We maintained leadership positions in each of our core product lines, which positions us for continued growth throughout the year," stated Jen-Hsun Huang, president and CEO of NVIDIA.
"Our growth reflects the ever growing importance of the GPU across a broad range of computing and digital devices. The GPU is one of the most important enablers for the digital consumer era. Over the next 10 years, we estimate that over 10 billion GPUs will be needed to power PCs, mobile devices, cars, TVs, and game consoles. Our strategy is clear and focused - to be the world leader in GPUs and capitalize on this exciting opportunity," added Mr. Huang.
First Quarter Fiscal 2008 Highlights:
- Non-GAAP gross margin reached a Company record of 45.4 percent, an increase of 120 basis points sequentially from the fourth quarter of fiscal 2007, and 290 basis points year-over-year. GAAP gross margin was 45.0 percent.
- The GeForce® notebook product line achieved record revenue for the fifth consecutive quarter with revenue growth of 71 percent year-over-year. According to Mercury Research, GeForce is the market leader in Standalone Notebooks with 60 percent segment share.
- NVIDIA nForce® MCP product line revenue increased 25 percent year-over-year and continues to hold the leadership position for the AMD segment.
- The NVIDIA Quadro® workstation product line had a record quarter, with revenue growth of 39 percent year-over-year. New products include Quadro FX 4600, Quadro FX 5600, and Quadro Plex VCS Model IV.
- NVIDIA launched a partnership with University of Illinois at Urbana-Champaign to offer a new class in parallel computing based on CUDA™ technology and G80-class GPUs. The course is designed to meet a growing industry need for better prepared students, as parallel processors are quickly becoming the computing standard.
- EE Times honored NVIDIA with the Annual Creativity in Electronics (ACE) Award for Company of the Year. The award recognizes a company that exhibits the highest degree of professionalism, employee development and retention, customer focus, technical excellence, and profitability.
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2008 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 www.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 second quarter fiscal 2008.
To supplement the Company's Condensed Consolidated Statements of Income presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP net income, non-GAAP basic and diluted net income per share, and other non-GAAP line items from the Condensed Consolidated Statements of Income, including cost of revenue information, gross profit, gross margin, operating expenses (including research and development, and sales, general and administrative expenses) and income tax expense. In order for our investors to be better able to compare our current results with those of previous periods, we have shown a non-GAAP presentation of our Condensed Consolidated Statements of Income as reconciled against the GAAP presentation. Our non-GAAP results adjust our GAAP results to exclude stock-based compensation, a non-recurring credit associated with the net cumulative impact of estimating forfeitures as a result of the adoption of SFAS 123R, and the associated tax impact. We believe the presentation of our non-GAAP results enhances the user's overall understanding of our historical financial performance. The presentation of our non-GAAP financial results is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
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, statements as to: the role and uses of GPUs; our growth; our strategy; target markets; and the use of non-GAAP financial measures are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: slower than expected growth of a target market; loss of an opportunity; delays in the launch of new products or technologies; manufacturing or software defects; our reliance on third-party manufacturers; development of faster or more efficient GPUs; the impact of technological development and competition; general industry trends; changes in industry standards and interfaces as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-K for the fiscal year ended January 28, 2007. Copies of reports filed with the SEC are posted on our website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
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