NVIDIA (
Certain statements in this press release including, but not limited to, statements as to: the benefits and impact of, and demand and enthusiasm for, NVIDIA's products and technologies; and NVIDIA's revenue outlook for the fourth quarter of fiscal 2010; 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; development of faster or more efficient technology; the impact of technological development and competition; 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-Q for the fiscal period ended July 26, 2009. Copies of reports filed with the SEC are posted on NVIDIA'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.
Copyright © 2009 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Tegra, NVIDIA ION and CUDA are registered trademarks and/or trademarks of NVIDIA Corporation in the United States and other countries. All other company and/or product names may be trade names, trademarks, and/or registered trademarks of the respective owners with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.
NVIDIA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended ------------------------- ------------------------ October 25, October 26, October 25, October 26, 2009 2008 2009 2008 ------------ ----------- ----------- ------------ Revenue $ 903,206 $ 897,655 $ 2,343,957 $ 2,943,719 Cost of revenue 511,423 529,812 1,605,755 1,911,116 ------------ ----------- ----------- ------------ Gross profit 391,783 367,843 738,202 1,032,603 Operating expenses Research and development 197,948 212,360 692,600 644,100 Sales, general and administrative 85,990 90,349 278,829 275,782 Restructuring charges - 8,338 - 8,338 ------------ ----------- ----------- ------------ Total operating expenses 283,938 311,047 971,429 928,220 ------------ ----------- ----------- ------------ Operating income (loss) 107,845 56,796 (233,227) 104,383 Interest and other income, net 2,362 4,207 11,512 23,038 ------------ ----------- ----------- ------------ Income (loss) before income tax expense 110,207 61,003 (221,715) 127,421 Income tax expense (benefit) 2,630 (745) (22,652) 9,797 ------------ ----------- ----------- ------------ Net income (loss) $ 107,577 $ 61,748 $ (199,063) $ 117,624 ============ =========== =========== ============ Basic net income (loss) per share $ 0.20 $ 0.11 $ (0.36) $ 0.21 ============ =========== =========== ============ Diluted net income (loss) per share $ 0.19 $ 0.11 $ (0.36) $ 0.20 ============ =========== =========== ============ Shares used in basic per share computation 551,283 543,807 546,737 551,623 Shares used in diluted per share computation 574,381 564,536 546,737 590,490 NVIDIA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) October 25, January 25, 2009 2009 ----------- ----------- ASSETS Current assets: Cash, cash equivalents and marketable securities $ 1,634,079 $ 1,255,390 Accounts receivable, net 397,820 318,435 Inventories 277,643 537,834 Prepaid expenses and other current assets 48,174 56,299 ----------- ----------- Total current assets 2,357,716 2,167,958 Property and equipment, net 565,296 625,798 Goodwill 369,844 369,844 Intangible assets, net 127,817 147,101 Deposits and other assets 42,901 40,026 ----------- ----------- Total assets $ 3,463,574 $ 3,350,727 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 321,530 $ 218,864 Accrued liabilities and other current liabilities 567,276 559,727 ----------- ----------- Total current liabilities 888,806 778,591 Other long-term liabilities 126,373 151,850 Capital lease obligations, long term 24,760 25,634 Stockholders' equity 2,423,635 2,394,652 ----------- ----------- Total liabilities and stockholders' equity $ 3,463,574 $ 3,350,727 =========== =========== NVIDIA CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended ---------------------------------- ------------------------ October 25, July 26, October 26, October 25, October 26, 2009 2009 2008 2009 2008 --------- ----------- ---------- ----------- ----------- GAAP gross profit $ 391,783 $ 156,723 $ 367,843 $ 738,202 $ 1,032,603 GAAP gross margin 43.4% 20.2% 41.0% 31.5% 35.1% Stock-based compensation expense included in cost of revenue (A) 2,650 4,828 3,558 9,708 10,027 Net warranty charge against cost of revenue arising from a weak die/packaging material set (B) (24,115) 119,993 - 95,878 195,954 Non-recurring charge related to a royalty dispute - - 4,500 - 4,500 Stock option purchase charge related to cost of revenue © - - - 11,412 - --------- ----------- ---------- ----------- ----------- Non-GAAP gross profit $ 370,318 $ 281,544 $ 375,901 $ 855,200 $ 1,243,084 ========= =========== ========== =========== =========== Non-GAAP gross margin 41.0% 36.3% 41.9% 36.5% 42.2% GAAP net income (loss) $ 107,577 $ (105,302) $ 61,748 $ (199,063) $ 117,624 Stock- based compensation expense (A) 22,982 25,376 38,384 82,471 120,873 Net warranty charge against cost of revenue arising from a weak die/packaging material set (B) (25,105) 119,054 - 93,949 195,954 Restructuring charges - - 8,338 - 8,338 Non-recurring charge related to a royalty dispute - - 4,500 - 4,500 Stock option purchase charge © - - - 140,241 - Income tax impact of non-GAAP adjustments 4,876 (1,398) (1,540) (16,212) (49,624) --------- ----------- ---------- ----------- ----------- Non-GAAP net income $ 110,330 $ 37,730 $ 111,430 $ 101,386 $ 397,665 ========= =========== ========== =========== =========== Diluted net income (loss) per share GAAP $ 0.19 $ (0.19) $ 0.11 $ (0.36) $ 0.20 ========= =========== ========== =========== =========== Non-GAAP $ 0.19 $ 0.07 $ 0.20 $ 0.18 $ 0.68 ========= =========== ========== =========== =========== Shares used in GAAP diluted net income (loss) per share computation 574,381 546,639 564,536 546,737 590,490 Impact of non-GAAP adjustments on dilutive share computation (1,190) 15,996 (3,374) 16,291 (9,058) --------- ----------- ---------- ----------- ----------- Shares used in non-GAAP diluted net income per share computation 573,191 562,635 561,162 563,028 581,432 ========= =========== ========== =========== =========== Metrics: GAAP net cash flow provided by operating activities $ 141,317 $ 135,117 $ 43,003 $ 418,562 $ 269,205 Purchase of property and equipment and intangible assets (16,593) (17,656) (109,008) (55,026) (364,695) --------- ----------- ---------- ----------- ----------- Free cash flow $ 124,724 $ 117,461 $ (66,005) $ 363,536 $ (95,490) ========= =========== ========== =========== =========== GAAP cost of revenue [1] $ 511,423 $ 619,797 $ 529,812 $ 1,605,755 $ 1,911,116 GAAP inventory [2] $ 277,643 $ 279,216 $ 523,988 $ 277,643 $ 523,988 Days in period [3] 91 91 91 273 273 --------- ----------- ---------- ----------- ----------- GAAP days sales in inventory [2]*[3]÷[1] 49 41 90 47 75 ========= =========== ========== =========== =========== GAAP revenue $ 903,206 $ 776,520 $ 897,655 $ 2,343,957 $ 2,943,719 Less: Non-GAAP gross profit (370,318) (281,544) (375,901) (855,200) (1,243,084) --------- ----------- ---------- ----------- ----------- Non-GAAP cost of revenue [4] $ 532,888 $ 494,976 $ 521,754 $ 1,488,757 $ 1,700,635 ========= =========== ========== =========== =========== GAAP ending inventory [5] $ 277,643 $ 279,216 $ 523,988 $ 277,643 $ 523,988 Days in period [6] 91 91 91 273 273 Non-GAAP days sales in inventory [5]*[6]÷[4] 47 51 91 51 84 ========= =========== ========== =========== =========== (A) Results include stock-based compensation expense as follows (in thousands): Three Months Ended Nine Months Ended ----------------------------------- ------------------------- October 25, July 26, October 26, October 25, October 26, 2009 2009 2008 2009 2008 ---------- ------------ ----------- ------------ ------------ Cost of revenue $ 2,650 $ 4,828 $ 3,558 $ 9,708 $ 10,027 Research and development $ 12,853 $ 13,268 $ 22,740 $ 47,391 $ 71,500 Sales, general and adminis- trative $ 7,479 $ 7,280 $ 12,086 $ 25,372 $ 39,346 (B) Excludes a charge related to the weak die/packaging material set that was used in certain versions of our previous generation chips, net of insurance reimbursement. (C) During the three months ended April 26, 2009, the Company completed a tender offer to purchase an aggregate of 28.5 million outstanding stock options for a total cash payment of $78.1 million. As a result of the tender offer the Company incurred a charge of $140.2 million, consisting of the remaining unamortized stock-based compensation expenses associated with the unvested portion of the options tendered in the offer, stock-based compensation expense resulting from amounts paid in excess of the fair value of the underlying options, plus associated payroll taxes and professional fees. The $140.2 million stock option purchase charge for the three months ended April 26, 2009 relates to personnel associated with cost of revenue (for manufacturing personnel), research and development, and sales, general and administrative of $11.4 million, $90.5 million, and $38.3 million, respectively.