NVIDIA Reports Record Results For Third Quarter Of Fiscal 2008
Company Sets New Quarterly Revenue Record, Surpassing $1 Billion; Net Income and Gross Margin Also Reach Record Highs
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FOR IMMEDIATE RELEASE
SANTA CLARA, CA—NOVEMBER 8, 2007
—NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2008 ended October 28, 2007.
For the third quarter of fiscal 2008, revenue increased to a record $1.12 billion compared to $820.6 million for the third quarter of fiscal 2007, an increase of 36 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2008 was a record $235.7 million, or $0.38 per diluted share, an increase of 121 percent compared to the third quarter of fiscal 2007. GAAP gross margin improved by 550 basis points from a year ago to a record 46.2 percent.
Non-GAAP net income for the third quarter of fiscal 2008, which excludes stock-based compensation charges and the associated tax impact, was $264.2 million, or $0.44 per diluted share, an increase of 77 percent compared to the third quarter of fiscal 2007. Non-GAAP gross margin improved to a record 46.4 percent, an increase of 350 basis points from a year ago.
For the nine months ended October 28, 2007, revenue increased to a record $2.90 billion compared to $2.19 billion for the nine months ended October 29, 2006, an increase of 32 percent. GAAP net income for the nine months ended October 28, 2007 was $540.7 million, or $0.89 per diluted share, compared to $285.3 million, or $0.50 per diluted share, for the nine months ended October 29, 2006.
Non-GAAP net income for the nine months ended October 28, 2007, which excludes stock-based compensation charges and the associated tax impact was $626.7 million, or $1.06 per diluted share, compared to $372.3 million, or $0.66 per diluted share, for the nine months ended October 29, 2006.
"We are very proud to have achieved our first billion dollar quarter. And, while it is a wonderful milestone to reach, we believe this is just the beginning," said Jen-Hsun Huang, president and CEO of NVIDIA. "Our core businesses are continuing to grow as the GPU becomes increasingly central to today's computing experience in both the consumer and professional market segments."
Mr. Huang added: "This is the era of visual computing and NVIDIA is at the forefront. People want a delightful, compelling experience when they interact with their computing devices, whether it's on a phone, notebook, game console, or workstation. NVIDIA is leading the way in making this experience more intuitive and rewarding through our relentless pace of innovation and focus on execution."
Third Quarter Fiscal 2008 and Recent Highlights:
Conference Call and Web Cast Information
- As the first GPU company to reach the $1 billion quarter level, NVIDIA continues to be one of the fastest growing semiconductor technology companies in the world.
- The GeForce® desktop and notebook GPU product lines each achieved record revenue. The desktop GPU product line grew 33 percent year-over-year and the notebook GPU product line grew 120 percent year-over-year.
- NVIDIA shipped its first-ever single-chip motherboard GPUs (mGPUs) for Intel-processor-based desktop PCs – the NVIDIA GeForce 7000 mGPU family. The GeForce 7000 mGPU family delivers the performance of an entry-level discrete GPU when compared against traditional integrated graphics solutions.
- NVIDIA launched the new GeForce 8800 GT GPU, which combines best-of-class gaming performance and HD playback at the $199 price point.
- The Quadro® Professional Solutions Business achieved record revenue, growing 37 percent year-over-year. NVIDIA launched seven new Quadro solutions during the third quarter of fiscal 2008, most notably the Quadro FX 370 and 570, which deliver ISV-certified hardware at the sub-$200 price point.
- NVIDIA began shipments of the Tesla™ C870 GPU computing processor and D870 desk-side supercomputer products during the third quarter of fiscal 2008. The adoption of Tesla and the CUDA C-language programming environment and tool suite continues to accelerate.
NVIDIA will conduct a conference call with analysts and investors to discuss its third 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 (212) 231-2901. 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 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 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 gross profit, non-GAAP net income, and non-GAAP diluted net income per share. In order for our investors to be better able to compare our current results with those of previous periods, we have shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, patent license fees for past usage, 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, where applicable. We believe the presentation of our non-GAAP financial measures enhances the user's overall understanding of our historical financial performance. The presentation of our non-GAAP financial measures 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: role of the GPU in computing; our revenue; our growth and growth of core businesses; the era of visual computing; NVIDIA's leadership, innovation and focus on execution; adoption of Tesla and the CUDA C language programming environment and tool suite; 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 market or adoption of a product or technology; the impact of technological development and competition; the impact of competitive products and technologies; our reliance on third-parties to manufacture, assemble, package and test our products; whether customers continue to adopt our technologies and products; changes in consumer preferences; 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-Q for the period ended July 29, 2007. Copies of reports filed with the SEC are posted on our Web site 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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