- Revenue grew 2 percent quarter-on-quarter to $1.0 billion
- GAAP net income increased to $137.6 million, or $0.23 per diluted share
- GAAP gross margin improved to 45.6 percent
($ in millions except per share Quarterly Highlights data) ------------------------------------- Q1 FY2011 Q4 FY2010 Q1 FY2010 ----------- ----------- ----------- Revenue $ 1,001.8 $ 982.5 $ 664.2 ----------- ----------- ----------- GAAP: ----------- ----------- ----------- Gross margin 45.6% 44.7% 28.6% ----------- ----------- ----------- Net income (loss) $ 137.6 $ 131.1 $ (201.3) ----------- ----------- ----------- Income (loss) per share $ 0.23 $ 0.23 $ (0.37) ----------- ----------- -----------"With our new Fermi-class GPUs in full production, NVIDIA's key profit drivers are fully engaged," said Jen-Hsun Huang, NVIDIA CEO and president. "We shipped a few hundred thousand Fermi processors into strong consumer demand. Our Quadro business for workstations grew strongly, fueled by pent up demand from enterprise customers and new growth markets like video editing. And we had record revenue from Tesla processors for high-end servers. We anticipate continued strength in these businesses over the coming quarters." Outlook The outlook for the second quarter of fiscal 2011 is as follows:
- Revenue is expected to be down seasonally 3 to 5 percent from the first quarter.
- GAAP gross margin is expected to increase to 46 to 47 percent.
- GAAP operating expenses are expected to be flat.
- Tax rate of 12 to 14 percent, assuming a renewal of the U.S. R&D tax credit. Otherwise, tax rate of 14 to 16 percent.
- NVIDIA launched and shipped the GeForce® GTX 480 and GeForce GTX 470, the first GPUs based on the company's Fermi™ architecture.
- The first phones using NVIDIA's Tegra® processors shipped, the KIN ONE and KIN TWO from Microsoft.
- NVIDIA launched major new stereo 3D technologies, including NVIDIA® 3DTV Play and the Quadro® Digital Video Pipeline™. Epic Games announced that it had incorporated 3D Vision into its popular Unreal Engine 3 game engine.
- CUDA™ registered another major success: Adobe started shipping Creative Suite 5 in April. This version of Adobe Premiere Pro exclusively uses CUDA to accelerate the new Adobe Mercury Playback Engine, which allows real-time previews for multi-layer projects.
- NVIDIA began shipments of the GeForce 320M integrated chipset to Apple for incorporation into the latest 13-inch MacBook Pro. The 320M delivers up to an 80 percent performance increase over the previous GeForce 9400M GPU. In addition, the new 15- and 17-inch MacBook Pro both come standard with the new GeForce GT 330M.
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2011 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) 231-2900. A live Web cast (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 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 2011. About NVIDIA
NVIDIA (
NVIDIA CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended ---------------------------------- May 2, January 31, April 26, 2010 2010 2009 ----------- ----------- ---------- Revenue $ 1,001,813 $ 982,488 $ 664,231 Cost of revenue 545,436 543,767 463,123 Cost of revenue related to stock option purchase - - 11,412 (A) ----------- ----------- ---------- Gross profit 456,377 438,721 189,696 Operating expenses Research and development 218,105 216,251 211,341 Sales, general and administrative 90,879 88,188 80,491 Stock option purchase - - 128,829 (A) ----------- ----------- ---------- Total operating expenses 308,984 304,439 420,661 ----------- ----------- ---------- Operating income (loss) 147,393 134,282 (230,965) Interest and other income, net 3,332 5,139 6,144 ----------- ----------- ---------- Income (loss) before income tax expense 150,725 139,421 (224,821) Income tax expense (benefit) 13,131 8,345 (23,483) ----------- ----------- ---------- Net income (loss) $ 137,594 $ 131,076 $ (201,338) =========== =========== ========== Basic net income (loss) per share $ 0.24 $ 0.24 $ (0.37) =========== =========== ========== Diluted net income (loss) per share $ 0.23 $ 0.23 $ (0.37) =========== =========== ========== Shares used in basic per share computation 567,183 557,479 542,307 Shares used in diluted per share computation 590,997 582,081 542,307 (A) During the three months ended April 26, 2009, the Company completed a tender offer to purchase outstanding stock options which resulted in a charge of $140.2 million, $11.4 million of which was associated with cost of revenue and $128.8 million with operating expenses. NVIDIA CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) May 2, January 31, 2010 2010 ----------- ----------- ASSETS Current assets: Cash, cash equivalents and marketable securities $ 1,764,896 $ 1,728,227 Accounts receivable, net 529,663 374,963 Inventories 388,139 330,674 Prepaid expenses and other current assets 44,282 46,966 ----------- ----------- Total current assets 2,726,980 2,480,830 Property and equipment, net 548,916 571,858 Goodwill 369,844 369,844 Intangible assets, net 115,423 120,458 Deposits and other assets 41,867 42,928 ----------- ----------- Total assets $ 3,803,030 $ 3,585,918 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 362,740 $ 344,527 Accrued liabilities and other current liabilities 402,553 439,851 ----------- ----------- Total current liabilities 765,293 784,378 Other long-term liabilities 152,994 111,950 Capital lease obligations, long term 24,098 24,450 Stockholders' equity 2,860,645 2,665,140 ----------- ----------- Total liabilities and stockholders' equity $ 3,803,030 $ 3,585,918 =========== ===========
Contact Information: For further information, contact: Michael Hara Investor Relations NVIDIA Corporation (408) 486-2511 mhara@nvidia.com Robert Sherbin Corporate Communications NVIDIA Corporation (408) 566-5150 rsherbin@nvidia.com