NVIDIA Reports Financial Results for First Quarter Fiscal Year 2013
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NVIDIA Reports Financial Results for First Quarter Fiscal Year 2013

SANTA CLARA, CA -- (Marketwire) -- May 11, 2012 -- NVIDIA (NASDAQ: NVDA)

NVIDIA (NASDAQ: NVDA) today reported revenue of $924.9 million for the first quarter of fiscal 2013 ended Apr. 29, 2012.

"Kepler GPUs are accelerating our business," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Our newly launched desktop products are winning some of the best reviews we've ever had. Notebook GPUs had a record quarter. And Tegra is on a growth track again, driven by great mobile device wins and the upcoming Windows on ARM launch.

"Graphics is more important than ever. Look for exciting news next week at the GPU Technology Conference as we reveal new ways that the GPU will enhance mobile and cloud computing," he said.

                                                                            
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                                       Q1 FY13   Q4 FY12   Q1 FY13   Q4 FY12
                                                                            
 (in millions except per share data)    GAAP      GAAP    NON-GAAP  NON-GAAP
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Revenue                                 $924.9    $953.2    $924.9    $953.2
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Gross margin                             50.1%     51.4%     50.4%     52.5%
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Operating expenses                      $390.5    $367.7    $348.0    $325.2
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Net income                               $60.4    $116.0     $97.5    $158.1
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Earnings per share                       $0.10     $0.19     $0.16     $0.26
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Outlook

Our outlook for the second quarter of fiscal 2013 is as follows:

We estimate depreciation and amortization for the second quarter to be approximately $55 million to $57 million. Capital expenditures are expected to be in the range of $35 to $45 million.

Diluted shares for the second quarter are expected to be approximately 628 million.

First Quarter Fiscal 2013 and Recent Highlights:

                                                                            
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                     GAAP Quarterly Financial Comparison                    
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   (in millions except per share data)     Q1 FY13   Q4 FY12        Q/Q     
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Revenue                                     $924.9    $953.2         down 3%
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Gross margin                                 50.1%     51.4%   down 1.3 p.p.
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Operating expenses                          $390.5    $367.7         up 6.2%
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Net income                                   $60.4    $116.0      down 47.9%
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Earnings per share                           $0.10     $0.19      down 47.4%
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               Non-GAAP Quarterly Financial Comparison*              
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(in millions except per share data)  Q1 FY13   Q4 FY12       Q/Q     
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Revenue                               $924.9    $953.2        down 3%
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Gross margin                           50.4%     52.5%   down 2.1 p.p
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Operating expenses                    $348.0    $325.2          up 7%
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Net income                             $97.5    $158.1     down 38.3%
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Earnings per share                     $0.16     $0.26     down 38.5%
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* Non-GAAP earnings excluded stock-based compensation, amortization  
of acquisition-related intangible assets, other acquisition-related  
costs, a legal settlement in the fourth quarter of fiscal 2012, and  
the tax impact associated with such items.                           
                                                                     

CFO Commentary
Commentary on the quarter by Karen Burns, NVIDIA interim chief financial officer, is available at www.nvidia.com/ir.

Conference Call and webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2013 financial results and current financial prospects today at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time). To listen to the call, please dial (706) 679 2572. A live webcast (listen-only mode) of the conference call will be accessible at the NVIDIA investor relations web site www.nvidia.com/ir and at www.streetevents.com. The webcast will be recorded and available for replay until the company's conference call to discuss its financial results for its second quarter fiscal 2013.

Non-GAAP Measures
To supplement NVIDIA's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income tax expense, non-GAAP net income, and non-GAAP net income, or earnings, per share. In order for NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude a non-recurring charge related to a legal settlement, stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a non-recurring contribution expense, and the associated tax impact of these items, where applicable. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA
NVIDIA (NASDAQ: NVDA) awakened the world to computer graphics when it invented the GPU in 1999. Today, its processors power a broad range of products from smartphones to supercomputers. NVIDIA's mobile processors are used in cell phones, tablets and auto infotainment systems. PC gamers rely on GPUs to enjoy spectacularly immersive worlds. Professionals use them to create 3D graphics and visual effects in movies and to design everything from golf clubs to jumbo jets. And researchers utilize GPUs to advance the frontiers of science with high performance computing. The company has more than 4,500 patents issued, allowed or filed, including ones covering ideas essential to modern computing. For more information, see www.nvidia.com.

Certain statements in this press release including, but not limited to statements as to: the impact of Kepler GPUs on our business; reviews of our newly launched desktop products; the growth of Tegra, driven by great mobile device wins and the upcoming Windows on ARM launch; important news at our GPU Technology Conference; new ways that the GPU will enhance mobile and cloud computing; the company's financial outlook for the second quarter of fiscal 2013; the company's tax rate for the second quarter and fiscal year 2013; and the effects of the company's patents on modern computing 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: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-K for the fiscal year ended January 29, 2012. Copies of reports filed with the SEC are posted on the company's 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.

© 2012 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Kepler, and Tegra are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

                                                                            
                                                                            
                             NVIDIA CORPORATION                             
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME                
                    (In thousands, except per share data)                   
                                 (Unaudited)                                
                                                                            
                                                      Three Months Ended    
                                                 ---------------------------
                                                   April 29,       May 1,   
                                                      2012          2011    
                                                 ------------- -------------
                                                                            
Revenue                                          $     924,877 $     962,039
Cost of revenue                                        461,513       477,536
                                                 ------------- -------------
Gross profit                                           463,364       484,503
Operating expenses                                                          
  Research and development                             283,902       231,524
  Sales, general and administrative                    106,636        98,117
                                                 ------------- -------------
    Total operating expenses                           390,538       329,641
                                                 ------------- -------------
Operating income                                        72,826       154,862
Interest and other income, net                           4,269         1,623
                                                 ------------- -------------
Income before income tax expense                        77,095       156,485
Income tax expense                                      16,658        21,266
                                                 ------------- -------------
Net income                                       $      60,437 $     135,219
                                                 ============= =============
                                                                            
Basic net income per share                       $        0.10 $        0.23
                                                 ============= =============
Diluted net income per share                     $        0.10 $        0.22
                                                 ============= =============
                                                                            
Shares used in basic per share computation             615,780       594,802
Shares used in diluted per share computation           623,786       613,474
                                                                            
                                                                            
                                                                            
                                                                            
                             NVIDIA CORPORATION                             
                    CONDENSED CONSOLIDATED BALANCE SHEETS                   
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                                   April 29,    January 29, 
                                                      2012          2012    
                                                 ------------- -------------
ASSETS                                                                      
                                                                            
Current assets:                                                             
  Cash, cash equivalents and marketable                                     
   securities                                    $   3,130,812 $   3,129,576
  Accounts receivable, net                             411,155       336,143
  Inventories                                          342,707       340,297
  Prepaid expenses and other current assets            147,442        99,342
                                                 ------------- -------------
    Total current assets                             4,032,116     3,905,358
                                                                            
Property and equipment, net                            553,541       560,072
Goodwill                                               641,030       641,030
Intangible assets, net                                 363,395       326,136
Other assets                                           118,085       120,332
                                                 ------------- -------------
    Total assets                                 $   5,708,167 $   5,552,928
                                                 ============= =============
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current liabilities:                                                        
  Accounts payable                               $     395,578 $     335,072
  Accrued liabilities and other current                                     
   liabilities                                         551,826       594,886
                                                 ------------- -------------
    Total current liabilities                          947,404       929,958
                                                                            
Other long-term liabilities                            452,505       455,807
Capital lease obligations, long term                    20,830        21,439
                                                                            
Stockholders' equity                                 4,287,428     4,145,724
                                                 ------------- -------------
                                                                            
    Total liabilities and stockholders' equity   $   5,708,167 $   5,552,928
                                                 ============= =============
                                                                            
                                                                            
                                                                            
                                                                            
                             NVIDIA CORPORATION                             
           RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES            
                   (In thousands, except per share data)                    
                                (Unaudited)                                 
                                                                            
                                                Three Months Ended          
                                      ------------------------------------- 
                                       April 29,   January 29,     May 1,   
                                          2012         2012         2011    
                                      -----------  -----------  ----------- 
                                                                            
GAAP gross profit                     $   463,364  $   490,013  $   484,503 
  GAAP gross margin                          50.1%        51.4%        50.4%
    Stock-based compensation expense                                        
     included in cost of revenue (A)        2,526        3,048        2,477 
    Legal settlement (B)                        -        7,300            - 
                                      -----------  -----------  ----------- 
Non-GAAP gross profit                 $   465,890  $   500,361  $   486,980 
                                      ===========  ===========  =========== 
  Non-GAAP gross margin                      50.4%        52.5%        50.6%
                                                                            
GAAP operating expenses               $   390,538  $   367,696  $   329,641 
    Stock-based compensation expense                                        
     included in operating expense                                          
     (A)                                  (33,043)     (32,388)     (29,262)
    Amortization of acquisition-                                            
     related intangible assets             (4,342)      (5,041)      (2,296)
    Other acquisition-related costs                                         
     (C)                                   (5,171)      (5,052)      (1,255)
                                      -----------  -----------  ----------- 
Non-GAAP operating expenses           $   347,982  $   325,215  $   296,828 
                                      ===========  ===========  =========== 
                                                                            
GAAP net income                       $    60,437  $   116,025  $   135,219 
    Total pre-tax impact of non-GAAP                                        
     adjustments                           45,082       52,829       35,290 
    Income tax impact of non-GAAP                                           
     adjustments                           (7,989)     (10,718)      (4,796)
                                      -----------  -----------  ----------- 
Non-GAAP net income                   $    97,530  $   158,136  $   165,713 
                                      ===========  ===========  =========== 
                                                                            
Diluted net income per share                                                
    GAAP                              $      0.10  $      0.19  $      0.22 
                                      ===========  ===========  =========== 
    Non-GAAP                          $      0.16  $      0.26  $      0.27 
                                      ===========  ===========  =========== 
                                                                            
Shares used in diluted net income per                                       
 share computation                        623,786      618,599      613,474 
                                                                            
                                                                            
                                                                            
(A) Excludes stock-based compensation                                       
as follows:                                     Three Months Ended          
                                      ------------------------------------- 
                                       April 29,   January 29,     May 1,   
                                          2012         2012         2011    
                                      -----------  -----------  ----------- 
     Cost of revenue                  $     2,526  $     3,048  $     2,477 
     Research and development         $    21,207  $    20,908  $    18,589 
     Sales, general and                                                     
     administrative                   $    11,836  $    11,480  $    10,673 
                                                                            
(B) On February 7, 2012, the Company and Rambus entered into a licensing    
agreement and both parties also agreed to settle all outstanding legal      
disputes. For accounting purposes, a charge of $7.3 million associated with 
the fair value prescribed to the settlement portion was recognized for the  
year ended January 29, 2012.                                                
                                                                            
(C) Other acquisition-related costs are comprised of transaction costs,     
compensation charges and restructuring costs related to the acquisition of  
Icera, Inc. that was completed on June 10, 2011.                            
                                                                            
                                                                            
                                                                            
                                                                            
                             NVIDIA CORPORATION                             
                 RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK                 
                                                                            
                                                          Q2 FY2013 Outlook 
                                                          ----------------- 
                                                                            
GAAP gross margin                                                      51.2%
  Impact of stock-based compensation (A)                                0.3%
                                                          ----------------- 
Non-GAAP gross margin                                                  51.5%
                                                          ================= 
                                                                            
                                                                            
                                                          Q2 FY2013 Outlook 
                                                          ----------------- 
                                                            (In millions)   
                                                                            
GAAP operating expenses                                   $           418.0 
  Stock-based compensation expense included in operating                    
   expense                                                            (29.8)
  Amortization of acquisition-related intangible assets                (4.5)
  Other acquisition-related costs (B)                                  (4.7)
  Contribution expense                                                (25.0)
                                                          ----------------- 
Non-GAAP operating expenses                               $           354.0 
                                                          ================= 
                                                                            
(A) Represents $2.6 million of stock-based compensation expense included in 
cost of revenue.                                                            
                                                                            
(B) Other acquisition related costs are comprised of transaction costs,     
compensation charges and restructuring costs related to the acquisition of  
Icera, Inc. that was completed on June 10, 2011.                            
                                                                            
                                                                            
                                                                            
                                                                            

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