Strong Product Leadership Drives 13.5 Percent Quarter-Over-Quarter
Revenue Growth
SANTA CLARA, Calif., Aug. 7 /PRNewswire-FirstCall/ -- NVIDIA(R)
Corporation (Nasdaq: NVDA) today reported financial results for the second
quarter of fiscal 2004 ended July 27, 2003.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020613/NVDALOGO )
For the second quarter of fiscal 2004, revenue increased to $459.8
million, compared to $427.3 million for the second quarter of fiscal 2003, an
increase of 8 percent. Net income for the second quarter of fiscal 2004 was
$24.2 million, or $0.14 per diluted share, compared to net income of $5.3
million, or $0.03 per diluted share, for the second quarter of fiscal 2003.
Revenue for the six months ended July 27, 2003 was $864.8 million,
compared to revenue of $1.01 billion for the six months ended July 28, 2002.
Net income for the six months ended July 27, 2003 was $43.9 million, or $0.26
per diluted share, compared to net income of $88.5 million, or $0.51 per
diluted share, for the six months ended July 28, 2002.
"The broad adoption of our new FX family of GPUs in the desktop, notebook,
workstation, and media center segments is driving our revenue growth," stated
Jen-Hsun Huang, president and CEO of NVIDIA. "The FX GPUs were designed to
bring Cinematic Computing to every platform and segment we serve, and as a
result, NVIDIA has the strongest GPU offering available in the market today."
"Earlier this week, we announced our acquisition of MediaQ, the leading
provider of graphics and multimedia technology for wireless mobile devices,"
added Huang. "With our combined strengths, we are in a terrific position to
deliver rich media experiences in the three most important visual computing
platforms -- personal computers, digital consumer electronics and handhelds."
NVIDIA will conduct a conference call with analysts and investors to
discuss its second quarter fiscal 2004 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 visit the Investor Relations section of the NVIDIA web
site at http://www.nvidia.com/ir. A live web cast (listen-only mode) of the
conference call will be held at the NVIDIA investor relations website 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 third quarter fiscal 2004.
About NVIDIA
NVIDIA Corporation is a market leader in visual computing technology
dedicated to creating products that enhance the interactive experience on
consumer and professional computing platforms. Its graphics and
communications processors have broad market reach and are incorporated into a
wide variety of computing platforms, including consumer digital-media PCs,
enterprise PCs, professional workstations, digital content creation systems,
notebook PCs, military navigation systems and video games consoles. NVIDIA is
headquartered in Santa Clara, California and employs more than 1,600 people
worldwide. For more information, visit the Company's web site at
www.nvidia.com.
Certain statements in this press release regarding earnings in the second
quarter of fiscal 2004, including the statements relating to the Company's
expectations for NVIDIA's family of products and expectations of market
position and growth, are forward-looking statements that are subject to risks
and uncertainties that could cause results to be materially different than
expectations. Such risks and uncertainties include, but are not limited to,
manufacturing and other delays relating to new products, difficulties in the
fabrication process and dependence of the Company on third-party
manufacturers, general industry trends including cyclical trends in the PC and
semiconductor industries, manufacturing costs and the pricing of components
such as memory, the impact of competitive products and pricing alternatives,
changes in industry standards and interfaces, market acceptance of the
Company's new products, the Company's dependence on third-party developers and
publishers and the impact of litigation and other proceedings. Investors are
advised to read the Company's Annual Report on Form 10-K filed on April 25,
2003, particularly those sections entitled "Business Risks," for a fuller
discussion of these and other risks and uncertainties.
NOTE: Registered trademark NVIDIA(R) Corporation, Copyright 2003. All
company and/or product names are trademarks and/or registered trademarks of
their respective manufacturers.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
July 27, July 28, July 27, July 28,
2003 2002 2003 2002
Revenue $459,774 $427,285 $864,757 $1,010,190
Cost of revenue 329,800 327,983 608,215 703,723
Gross profit 129,974 99,302 256,542 306,467
Operating expenses:
Research and development 65,620 57,229 124,930 109,721
Sales, general and
administrative 39,722 35,908 80,632 73,390
Total operating expenses 105,342 93,137 205,562 183,111
Operating income 24,632 6,165 50,980 123,356
Interest and other income, net 2,029 1,340 3,891 3,071
Income before income tax expense 26,661 7,505 54,871 126,427
Income tax expense (A) 2,511 2,251 10,974 37,928
Net income $24,150 $5,254 $43,897 $88,499
Basic net income per share $0.15 $0.03 $0.28 $0.58
Diluted net income per share $0.14 $0.03 $0.26 $0.51
Shares used in basic per share
computation 160,077 152,296 159,350 151,490
Shares used in diluted per share
computation 174,551 168,770 170,653 172,628
(A) The effective income tax rate for the three and six months ended
July 27, 2003 was 9.4% and 20%, respectively. The effective income
tax rate for the three and six months ended July 28, 2002 was 30%.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 27, January 26,
2003 2003
ASSETS
Current assets:
Cash, cash equivalents and
marketable securities $1,011,587 $1,028,413
Accounts receivable, net 190,213 154,501
Inventories 217,859 145,046
Prepaid and other current assets 15,135 12,393
Prepaid and deferred taxes 11,249 11,249
Total current assets 1,446,043 1,351,602
Property and equipment, net 198,945 135,152
Deposits and other assets 12,720 10,473
Prepaid and deferred taxes 43,317 43,317
Goodwill 55,139 54,227
Intangible assets, net 23,949 22,244
Total assets $1,780,113 $1,617,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $282,397 $141,129
Accrued liabilities 183,196 228,467
Current portion of note and capital
lease obligations 6,528 5,676
Interest payable 4,117 4,176
Total current liabilities 476,238 379,448
Capital lease obligations, less
current portion 3,522 4,880
Long-term convertible debenture 300,000 300,000
Long-term liabilities 4,500 --
Stockholders' equity 995,853 932,687
Total liabilities and
stockholders' equity $1,780,113 $1,617,015
SOURCE NVIDIA Corporation
CONTACT:
Mohamed Siddeek, Investor Relations,
+1-408-486-7371, or
msiddeek@nvidia.com, or
Derek Perez, Public Relations,
+1-408-486-2512, or
dperez@nvidia.com,
both of NVIDIA Corporation |
