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 Financial Results for Second Quarter Fiscal Year 2013

Aug 09, 2012 (Marketwire via COMTEX) --NVIDIA (NASDAQ: NVDA)

  • Revenue of $1.04 billion.
  • GAAP net income was $119.0 million, or $0.19 per diluted share. Non-GAAP net income was $170.4 million, or $0.27 per diluted share.
  • GAAP gross margin was 51.8 percent. Non-GAAP gross margin was 52.0 percent.

NVIDIA (NASDAQ: NVDA) today reported revenue of $1.04 billion for the second quarter of fiscal 2013 ended July 29, 2012.

"Our investments in mobile computing and visual computing are both paying off," said Jen-Hsun Huang, president and chief executive officer of NVIDIA. "Tegra has achieved record sales as tablets come into their own. Our GPU business made strong gains in a weak market, boosted by our breakthrough Kepler architecture. Looking ahead, we're optimistic, as our investments position us right at the center of the fastest growing segments of computing."

               
(in millions except per
share data)
Q2 FY13
GAAP
  Q1 FY13
GAAP
  Q2 FY13
NON-GAAP
  Q1 FY13
NON-GAAP
Revenue $1,044.3   $924.9   $1,044.3   $924.9
Gross margin 51.8%   50.1%   52.0%   50.4%
Operating expenses $401.1   $390.5   $342.5   $348.0
Net income $119.0   $60.4   $170.4   $97.5
Earnings per share $0.19   $0.10   $0.27   $0.16
               

Outlook

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

  • Revenue is expected to be between $1.15 billion and $1.25 billion.

  • GAAP and non-GAAP gross margins are expected to be flat relative to the prior quarter, at 51.8 percent and 52.0 percent, respectively.

  • GAAP operating expenses are expected to be approximately $390 million; non-GAAP operating expenses are expected to be approximately $350 million. 

  • GAAP and non-GAAP tax rates are expected to be approximately 20 percent, plus or minus one percentage point, excluding any discrete tax events that may occur during the quarter, which, if realized, may increase or decrease our third quarter GAAP and non-GAAP tax rates. If the U.S. research tax credit is reinstated into tax law, we estimate our annual effective tax rate for the fiscal year 2013 to be approximately 16 percent.

We estimate depreciation and amortization for the third quarter to be approximately $57 million to $59 million. Capital expenditures are expected to be in the range of $30 million to $40 million.

Diluted shares for the third quarter are expected to be approximately 630 million.

Second Quarter Fiscal 2013 and Recent Highlights:

  • Google announced that Tegra 3 powers its Nexus 7 tablet -- a fully-fledged tablet priced at just $199 -- which is the first device to run Jelly Bean, the latest version of Android.

  • Microsoft announced that Tegra® is the processor powering the company's Surface for Windows RT tablet.

  • Kepler drove market share gains in the notebook market as OEMs announced Kepler-based notebooks. Among the products announced were new notebooks from Apple, Samsung, Dell, HP, Asus, Acer, Lenovo, and Sony.

  • At its third annual GPU Technology Conference, NVIDIA launched cloud computing technologies for consumers and enterprise customers, which represent new business opportunities for the company. These leverage original software and new Kepler™ features to deliver virtualized GPUs.

 
GAAP Quarterly Financial Comparison
(in millions except per share data)   Q2 FY13   Q1 FY13   Q/Q
Revenue   $1,044.3   $924.9    up 12.9%
Gross margin   51.8%   50.1%    up 1.7 p.p.
Operating expenses   $401.1   $390.5   up 2.7%
Net income   $119.0   $60.4    up 97.0%
Earnings per share   $0.19   $0.10    up 90.0%
             
 
Non-GAAP Quarterly Financial Comparison*
(in millions except per share data)   Q2 FY13   Q1 FY13   Q/Q
Revenue   $1,044.3   $924.9    up 12.9%
Gross margin   52.0%   50.4%    up 1.6 p.p.
Operating expenses   $342.5   $348.0    down 1.6%
Net income   $170.4   $97.5   up 74.8%
Earnings per share   $0.27   $0.16    up 68.8%
             

*Non-GAAP earnings excluded stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a contribution expense in the second quarter of fiscal 2013, 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 second quarter fiscal 2013 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 (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 third quarter fiscal 2013.

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 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 smart phones to supercomputers. NVIDIA's mobile processors are used in cell phones, tablets and auto infotainment systemsPC gamers rely on GPUs to enjoy spectacularly immersive worlds. Professionals use them to create visual effects in movies and design everything from golf clubs to jumbo jets. And researchers utilize GPUs to advance the frontiers of science with high-performance computing. The company holds more than 5,000 patents issued, allowed or filed. For more information, see www.nvidia.com.

Certain statements in this press release including, but not limited to statements as to: the company's investments in both mobile and visual computing and the impact and benefits of such investments; the benefits and impact of Tegra and the company's Kepler architecture; mobile and visual computing as the fastest growing segments of computing; cloud computing technologies as new business opportunities for the company; the company's financial outlook for the third quarter of fiscal 2013; and the company's tax rate for the third quarter and fiscal year 2013 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-Q for the fiscal period ended April 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, Icera, 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   Six Months Ended
    July 29,   July 31,   July 29,   July 31,
    2012   2011   2012   2011
                         
Revenue   $ 1,044,270   $ 1,016,517   $ 1,969,147   $ 1,978,556
Cost of revenue     503,551     491,233     965,064     968,769
Gross profit     540,719     525,284     1,004,083     1,009,787
Operating expenses                        
  Research and development     281,193     247,721     565,095     479,245
  Sales, general and administrative     119,903     103,533     226,539     201,650
    Total operating expenses     401,096     351,254     791,634     680,895
Operating income     139,623     174,030     212,449     328,892
Interest and other income, net     5,585     3,517     9,854     5,140
Income before income tax expense     145,208     177,547     222,303     334,032
Income tax expense     26,162     25,974     42,820     47,240
Net income   $ 119,046   $ 151,573   $ 179,483   $ 286,792
                         
Basic net income per share   $ 0.19   $ 0.25   $ 0.29   $ 0.48
Diluted net income per share   $ 0.19   $ 0.25   $ 0.29   $ 0.47
                         
Shares used in basic per share computation     618,996     601,340     617,388     598,077
Shares used in diluted per share computation     623,143     613,934     623,397     615,552
                         
                         
 
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
         
    July 29,   January 29,
    2012   2012
ASSETS            
             
Current assets:            
  Cash, cash equivalents and marketable securities   $ 3,278,100   $ 3,129,576
  Accounts receivable, net     445,312     336,143
  Inventories     387,185     340,297
  Prepaid expenses and other current assets     103,254     99,342
    Total current assets     4,213,851     3,905,358
             
Property and equipment, net     574,056     560,072
Goodwill     641,030     641,030
Intangible assets, net     346,938     326,136
Other assets     116,006     120,332
    Total assets   $ 5,891,881   $ 5,552,928
             
LIABILITIES AND STOCKHOLDERS' EQUITY            
             
Current liabilities:            
  Accounts payable   $ 417,250   $ 335,072
  Accrued liabilities and other current liabilities     604,710     594,886
    Total current liabilities     1,021,960     929,958
             
Other long-term liabilities     396,019     455,807
Capital lease obligations, long term     20,237     21,439
             
Stockholders' equity     4,453,665     4,145,724
             
    Total liabilities and stockholders' equity   $ 5,891,881   $ 5,552,928
             
             
                       
NVIDIA CORPORATION  
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES  
(In thousands, except per share data)  
(Unaudited)  
                       
    Three Months Ended   Six Months Ended  
    July 29,   April 29,   July 31,   July 29,   July 31,  
    2012   2012   2011   2012   2011  
                                 
GAAP gross profit   $ 540,719   $ 463,364   $ 525,284   $ 1,004,083   $ 1,009,787  
  GAAP gross margin     51.8 %   50.1 %   51.7 %   51.0 %   51.0 %
                                   
    Stock-based compensation expense included in cost of revenue (A)     2,649     2,526     2,748     5,175     5,225  
Non-GAAP gross profit   $ 543,368   $ 465,890   $ 528,032   $ 1,009,258   $ 1,015,012  
  Non-GAAP gross margin     52.0 %   50.4 %   51.9 %   51.3 %   51.3 %
                                 
GAAP operating expenses   $ 401,096   $ 390,538   $ 351,254   $ 791,634   $ 680,895  
    Stock-based compensation expense included in operating expense (A)     (29,606 )   (33,043 )   (33,202 )   (62,649 )   (62,464 )
    Amortization of acquisition-related intangible assets     (4,065 )   (4,342 )   (4,454 )   (8,407 )   (6,750 )
    Other acquisition-related costs (B)     (4,794 )   (5,171 )   (7,562 )   (9,965 )   (8,817 )
    Contribution expense (C)     (20,127 )   -     -     (20,127 )   -  
Non-GAAP operating expenses   $ 342,504   $ 347,982   $ 306,036   $ 690,486   $ 602,864  
                                 
GAAP net income   $ 119,046   $ 60,437   $ 151,573   $ 179,483   $ 286,792  
    Total pre-tax impact of non-GAAP adjustments     61,241     45,082     47,966     106,323     83,256  
    Income tax impact of non-GAAP adjustments     (9,839 )   (7,989 )   (5,994 )   (17,828 )   (10,790 )
Non-GAAP net income   $ 170,448   $ 97,530   $ 193,545   $ 267,978   $ 359,258  
                                 
Diluted net income per share                                
    GAAP   $ 0.19   $ 0.10   $ 0.25   $ 0.29   $ 0.47  
    Non-GAAP   $ 0.27   $ 0.16   $ 0.32   $ 0.43   $ 0.58  
                                 
Shares used in diluted net income per share computation     623,143     623,786     613,934     623,397     615,552  
                                 
                                 
                                 
                                 
(A) Excludes stock-based compensation as follows:   Three Months Ended   Six Months Ended  
    July 29,   April 29,   July 31,   July 29,   July 31,  
    2012   2012   2011   2012   2011  
    Cost of revenue   $ 2,649   $ 2,526   $ 2,748   $ 5,175   $ 5,225  
    Research and development   $ 18,885   $ 21,207   $ 21,697   $ 40,092   $ 40,286  
    Sales, general and administrative   $ 10,721   $ 11,836   $ 11,505   $ 22,557   $ 22,178  
                                 
(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.  
                                 
(C) Net present value of a $25 million chartitable contribution pledged on June 12, 2012 to Stanford Hospital and Clinic, payable over a ten year period.  
   
   
       
NVIDIA CORPORATION  
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK  
   
    Q3 FY2013 Outlook  
         
GAAP gross margin     51.8 %
  Impact of stock-based compensation (A)     0.2 %
Non-GAAP gross margin     52.0 %
         
    Q3 FY2013 Outlook  
    (In millions)  
         
GAAP operating expenses   $ 390.0  
  Stock-based compensation expense included in operating expense     (30.0 )
  Amortization of acquisition-related intangible assets     (5.0 )
  Other acquisition-related costs (B)     (5.0 )
         
Non-GAAP operating expenses   $ 350.0  
         
         
(A) Represents $2.6 million of stock-based compensation expense included in cost of revenue.  
   
(B) Other acquisition related costs are comprised primarily of compensation charges related to the acquisition of Icera, Inc. that was completed on June 10, 2011.  
   
   
For further information, contact:
        
        Rob Csongor
        Investor Relations
        NVIDIA Corporation
        (408) 566-6373
        rcsongor@nvidia.com
        
        Robert Sherbin
        Corporate Communications
        NVIDIA Corporation
        (408) 566-5150
        rsherbin@nvidia.com