Investor Relations
 
News Release

Investor Toolkit:  
Print Page Print Page | E-mail Page E-mail Page | RSS Feeds RSS Feeds | E-mail Alerts E-mail Alerts | Financial Tear Sheet Financial Tear Sheet

Printer Friendly Version View printer-friendly version
<< Back
NVIDIA Reports Record Results for Fourth Quarter and Fiscal Year 2008

Company Achieves Record Quarterly Revenue and Record Annual Revenue; Annual Net Income Increases 78 Percent Year-Over-Year

SANTA CLARA, Calif., Feb. 13 /PRNewswire-FirstCall/ -- NVIDIA Corporation (Nasdaq: NVDA), the world leader in visual computing technologies, today reported financial results for the fourth quarter of fiscal 2008 and the fiscal year ended January 27, 2008.

For the fourth quarter of fiscal 2008, revenue increased to a record $1.20 billion, compared to $878.9 million for the fourth quarter of fiscal 2007, an increase of 37 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2008 was $257.0 million, or $0.42 per diluted share, compared to net income of $163.5 million, or $0.27 per diluted share, for the fourth quarter of fiscal 2007, a net income increase of 57 percent.

Non-GAAP net income for the fourth quarter of fiscal 2008, which excludes stock-based compensation charges, a charge for in-process research and development related to an acquisition closed during the quarter, and the associated tax impact, was $292.6 million, or $0.49 per diluted share.

Annual revenue for the fiscal year ended January 27, 2008 was a record $4.10 billion, compared to revenue of $3.07 billion for the fiscal year ended January 28, 2007, an increase of 34 percent. GAAP net income for the fiscal year ended January 27, 2008 was $797.6 million, or $1.31 per diluted share, compared to GAAP net income of $448.8 million, or $0.76 per diluted share, for the fiscal year ended January 28, 2007, a net income increase of 78 percent.

Non-GAAP net income for the fiscal year ended January 27, 2008, which excludes stock-based compensation charges, a charge for in-process research and development related to an acquisition closed during the year, and the associated tax impact, was $919.3 million, or $1.56 per diluted share.

"Fiscal 2008 was another outstanding and record year for us. Strong demand for GPUs in all market segments drove our growth. Relative to Q4 one year ago, our discrete GPU business grew 80%. Our growth reflects the ever-increasing use of rich graphics in applications from Google Earth to Apple iTunes to online virtual worlds," said Jen-Hsun Huang, president and CEO of NVIDIA.

Mr. Huang continued: "This is the era of visual computing. The richness of the graphics is increasingly central to our computing experience. And at the core of that experience is the GPU, the processor that defines the modern PC."

    Fourth Quarter, Fiscal Year 2008, and Recent Highlights:

    -- Fourth Quarter revenue grew 37 percent year-over-year to a record
       $1.20 billion.
    -- Annual revenue increased 34 percent year-over-year to a record
       $4.10 billion.
    -- GAAP annual net income increased 78 percent year-over-year to a record
       $797.6 million.
    -- GAAP annual gross margin reached a Company high of 45.6 percent, a
       year-over-year increase of 320 basis points.
    -- We launched multiple industry-defining products and initiatives:
       * GeForce(R) 8800 graphics processing family, including the
         highly-acclaimed 8800GT
       * GeForce 7000 mGPU -- the first single-chip motherboard GPU for Intel
         systems
       * Tesla (TM) computing system -- the high performance computing
         industry's first C-programmable GPU
       * Hybrid SLI(R) technology -- the first hybrid technology for PC
         platforms
       * CUDA(TM) technology -- the first C-compiler for the GPU
       * PureVideo(R) HD technology -- the first video decode and post
         processing technology for Blu-ray and HD DVD
    -- NVIDIA(R) held #1 segment share in desktop and notebook GPU (Mercury
       Research PC Graphics 2008 Market Strategy and Forecast Report).
    -- NVIDIA held #1 segment share in workstation solutions (Jon Peddie
       Research Q3'07 Workstations and Professional Graphics Report).
    -- NVIDIA was named Most Respected Public Company by members of the
       Fabless Semiconductor Association for the second consecutive year.
    -- NVIDIA was named Forbes Company of the Year.
    -- We acquired Mental Images, the industry's leading photorealistic
       rendering technology provider.  Mental Image's Mental Ray is the most
       pervasive ray tracing renderer in industry.
    -- In February, we announced and completed the acquisition of AGEIA, the
       industry leader in gaming physics technology.

Conference Call and Web Cast Information

NVIDIA will conduct a conference call with analysts and investors to discuss its fourth 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; no password is required. 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/investor 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 first quarter fiscal 2009.

Non-GAAP Measures

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, in-process research & development charges related to acquisitions, 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.

About NVIDIA

NVIDIA is the world leader in visual computing technologies and the inventor of the GPU, a high-performance processor which generates breathtaking, interactive graphics on workstations, personal computers, game consoles, and mobile devices. NVIDIA serves the entertainment and consumer market with its GeForce products, the professional design and visualization market with its Quadro(R) products, and the high-performance computing market with its Tesla products. NVIDIA is headquartered in Santa Clara, Calif. and has offices throughout Asia, Europe, and the Americas. For more information, visit http://www.nvidia.com.

Certain statements in this release including, but not limited to, statements as to: the use and importance of graphics; visual computing; and the role of the GPU 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 anticipated adoption of new technologies or development of a market; the impact of competition and competitive products; technological advances; the development of more effective or efficient GPUs or CPUs; changes in consumer preferences or product uses; incompatibility of technologies; changes in industry standards; 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 October 28, 2007. Copies of reports filed with the SEC are posted on our 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 (C) 2008 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Tesla, Hybrid SLI, CUDA, PureVideo, and Quadro are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries. Other company and product names may be trademarks of the respective companies with which they are associated.

     Michael Hara                         Calisa Cole
     Investor Relations                   Corporate Communications
     NVIDIA Corporation                   NVIDIA Corporation
     (408) 486-2511                       (408) 486-6263
     mhara@nvidia.com                     ccole@nvidia.com



                              NVIDIA CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                    (In thousands, except per share data)
                                 (Unaudited)

                               Three Months Ended        Twelve Months Ended
                            January 27,  January 28,   January 27, January 28,
                                2008         2007          2008        2007

    Revenue                 $1,202,730     $878,873    $4,097,860  $3,068,771
    Cost of revenue            653,133      493,167     2,228,580   1,768,322
    Gross profit               549,597      385,706     1,869,280   1,300,449
    Operating expenses:
     Research and
      development              195,835      162,276       691,637     553,467
     Sales, general and
      administrative            91,263       84,916       341,297     293,530
         Total operating
          expenses             287,098      247,192     1,032,934     846,997
    Operating income           262,499      138,514       836,346     453,452
    Interest and other income,
     net                        17,403       13,045        64,995      41,028
    Income before income tax
     expense                   279,902      151,559       901,341     494,480
    Income tax expense /
     (benefit) (A)              22,909      (11,947)      103,696      46,350
    Income before change in
     accounting principle      256,993      163,506       797,645     448,130
    Cumulative effect of change
     in accounting principle,
     net of income tax (B)           -            -             -         704
    Net income                $256,993     $163,506      $797,645    $448,834
    Basic net income
     per share                   $0.46        $0.30         $1.45       $0.85
    Diluted net income
     per share                   $0.42        $0.27         $1.31       $0.76
    Shares used in basic per
     share computation (C)     557,143      538,172       550,108     528,606
    Shares used in diluted
     per share computation (C) 609,173      598,491       606,732     587,256



    (A) The effective income tax rate for the three and twelve months ended
        January 27, 2008 was 8.2% and 11.5%, respectively. The effective
        income tax (benefit)/expense rate for the three and twelve months
        ended January 28, 2007 was (7.9%) and 9.4%, respectively.
    (B) Reflects the net cumulative impact of estimating forfeitures as a
        result of adoption of SFAS 123R.
    (C) Reflects a three-for-two stock split on September 10, 2007.



                              NVIDIA CORPORATION
            RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
                    (In thousands, except per share data)
                                 (Unaudited)

                             Three Months Ended          Twelve Months Ended
                         January 27,    January 28,    January 27, January 28,
                             2008           2007           2008        2007

    GAAP gross profit      $549,597       $385,706     $1,869,280  $1,300,449
      Stock-based
       compensation
       expense included
       in cost of revenue     2,809          2,922         10,886       8,200
      Patent license fee
       for past usage
       included in cost
       of revenue                 -              -              -      16,000
    Non-GAAP gross profit  $552,406       $388,628     $1,880,166  $1,324,649
    GAAP net income        $256,993       $163,506       $797,645    $448,834
      Stock-based
       compensation
       expense (A)           34,497         33,909        133,365     116,735
      Income tax impact of
       non-GAAP adjustments  (2,902)        (5,239)       (15,755)    (17,862)
      Patent license fees
       for past usage             -              -              -      17,500
      In-process research &
       development charges
       related to
       acquisitions           4,000         13,400          4,000      13,400
      Cumulative effect of
       change in accounting
       principle, net (B)         -              -              -        (704)
    Non-GAAP net income    $292,588       $205,576       $919,255    $577,903
    Diluted net income
     per share
      GAAP                    $0.42          $0.27          $1.31       $0.76
      Non-GAAP                $0.49          $0.35          $1.56       $1.00
    Shares used in GAAP
     diluted net income
     per share
     computation (C)        609,173        598,491        606,732     587,256
      Cumulative impact of
      non-GAAP
      adjustments (D)       (15,837)       (11,220)       (16,148)    (10,752)
    Shares used in
     non-GAAP diluted net
     income per share
     computation (C)        593,336        587,271        590,584     576,504



    (A) Results include stock-based compensation expense as follows (in
        thousands):

                               Three Months Ended       Twelve Months Ended
                             January 27, January 28,   January 27, January 28,
                                 2008        2007          2008        2007

      Cost of revenue            $2,809      $2,922     $10,886      $8,200
      Research and
       development              $19,146     $20,333     $76,617     $70,077
      Sales, general and
       administrative           $12,542     $10,654     $45,862     $38,458



    (B) Reflects the net cumulative impact of estimating forfeitures as a
         result of adoption of SFAS 123R.
    (C) Reflects a three-for-two stock split on September 10, 2007.
    (D) Reflects an adjustment to the diluted outstanding shares calculated
        under SFAS 123R to conform to diluted outstanding shares calculated
        under prior accounting standards (APB 25).



                              NVIDIA CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                            January 27,       January 28,
                                                2008              2007
    ASSETS
    Current assets:
      Cash, cash equivalents and
       marketable securities                $1,809,478        $1,117,850
      Accounts receivable, net                 666,494           518,680
      Inventories                              358,521           354,680
      Prepaid expenses and other current
       assets                                   54,336            40,560
        Total current assets                 2,888,829         2,031,770
    Property and equipment, net                359,808           260,828
    Goodwill                                   354,057           301,425
    Intangible assets, net                     106,926            45,511
    Deposits and other assets                   38,051            35,729
        Total assets                        $3,747,671        $2,675,263



    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                        $492,099          $272,075
      Accrued liabilities                      475,062           366,732
        Total current liabilities              967,161           638,807
    Other long-term liabilities                162,598            29,537
    Stockholders' equity                     2,617,912         2,006,919
        Total liabilities and
         stockholders' equity               $3,747,671        $2,675,263

SOURCE NVIDIA Corporation

CONTACT: investor relations, Michael Hara, +1-408-486-2511,
mhara@nvidia.com, or corporate communications, Calisa Cole, +1-408-486-6263,
ccole@nvidia.com, both of NVIDIA Corporation