NVIDIA Reports Operating Results for Third Quarter Fiscal Year 2004
Notebook and Platform Momentum Help Drive Revenue Growth
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FOR IMMEDIATE RELEASE
SANTA CLARA, CA – November 6, 2003 – NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2004 ended October 26, 2003.
For the third quarter of fiscal 2004, revenue increased to $486.1 million, compared to $430.3 million for the third quarter of fiscal 2003, an increase of 13 percent. Net income for the third quarter of fiscal 2004 was $6.4 million, or $0.04 per diluted share, compared to a net loss of $48.6 million, or $0.32 per diluted share, for the third quarter of fiscal 2003. The financial results for the third quarter of fiscal 2004 included a charge to operating expense of $3.5 million for the write-off of in-process research and development that resulted from NVIDIA’s acquisition of MediaQ, Inc. in August 2003, and a charge of $13.1 million to other expense related to the full redemption of NVIDIA’s $300 million of 4 ¾% Convertible Subordinated Notes in October 2003.
Revenue for the nine months ended October 26, 2003 was $1.35 billion, compared to revenue of $1.44 billion for the nine months ended October 27, 2002. Net income for the nine months ended October 26, 2003 was $50.3 million, or $0.29 per diluted share, compared to net income of $39.9 million, or $0.24 per diluted share, for the nine months ended October 27, 2002. The financial results for the nine months ended October 27, 2002 included a charge of $61.8 million that resulted from the exchange of certain out-of-the-money employee stock options.
“NVIDIA had a solid quarter and our business fundamentals have turned the corner,” stated Jen-Hsun Huang, president and CEO of NVIDIA. “The full potential of our GeForce™ FX architecture is just being realized and is propelling our momentum and leadership across all of our products.” Mr. Huang added, “Driven by exciting market dynamics such as Microsoft® DirectX® 9, Microsoft Media Center, 64-bit computing and ultra-low power, each of our businesses are set for strong growth.”
Third Quarter Fiscal 2004 Highlights
- NVIDIA began shipping the most powerful desktop GPUs in the PC industry with the introduction of the GeForce FX 5950 and GeForce FX 5700. Both desktop GPUs deliver cinematic-quality graphics and studio-quality color, and are the only full 128-bit precision computation GPUs in the industry. The GeForce FX 5700 is NVIDIA’s first GPU produced at IBM’s 0.13 micron foundry in East Fishkill, NY.
- Notebook revenue was a record and reflected a successful transition to the GeForce FX Go notebook GPU product line. The GeForce FX Go family is the only top-to-bottom product line to support Microsoft’s DirectX 9 API.
- NVIDIA captured an overwhelming majority of the new design wins launched with Microsoft’s XP Media Center Edition 2004.
NVIDIA graphics were highlighted as Microsoft launched the Media Center Edition in Europe.
- Platform processor revenue rebounded strongly with sequential revenue growth of 60 percent. In October, NVIDIA shipped its 6 millionth NVIDIA nForce™2.
- Completed acquisition of MediaQ, marking NVIDIA’s entry into the wireless mobile segments. MediaQ extends NVIDIA’s competencies in ultra-low power design methodologies and system-on-chip designs, as well as in the Microsoft Pocket PC, Microsoft SmartPhone, Palm and Symbian operating systems.
NVIDIA will conduct a conference call with analysts and investors to discuss its third quarter fiscal 2004 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://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 fourth quarter fiscal 2004.
NVIDIA Corporation is a market leader in visual computing technology 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 games consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 1,700 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 2004, including the statements relating to the Company's expectations for NVIDIA's family of products and expectations of market position and growth, 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 April 25, 2003, particularly those sections entitled "Business Risks," for a more complete discussion of these and other risks and uncertainties.
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