NVIDIA Announces Financial Results for Third Quarter Fiscal 2017

SANTA CLARA, CA -- (Marketwired) -- Nov 10, 2016 -- NVIDIA (NASDAQ: NVDA)

Record revenue of $2.00 billion, up 54 percent from a year ago.
Record GAAP EPS of $0.83, up 89 percent from a year ago, and non-GAAP EPS of $0.94, up 104 percent from a year ago.
Record GAAP gross margin at 59.0 percent and non-GAAP gross margin at 59.2 percent.
Quarterly cash dividend raised 22 percent to $0.14 per share. Company to return $1.25 billion to shareholders in fiscal 2018.

NVIDIA (NASDAQ: NVDA) today reported revenue for the third quarter ended October 30, 2016, of $2.00 billion, up 54 percent from $1.30 billion a year earlier, and up 40 percent from $1.43 billion in the previous quarter.

GAAP earnings per diluted share for the quarter were $0.83, up 89 percent from $0.44 a year ago and up 102 percent from $0.41 in the previous quarter. Non-GAAP earnings per diluted share were $0.94, up 104 percent from $0.46 a year earlier and up 77 percent from $0.53 in the previous quarter.

"We had a breakout quarter - record revenue, record margins and record earnings were driven by strength across all product lines," said Jen-Hsun Huang, founder and chief executive officer, NVIDIA. "Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing.

"We have invested years of work and billions of dollars to advance deep learning. Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing," he said.

Capital Return
During the first nine months of fiscal 2017, NVIDIA paid $509 million in share repurchases and $185 million in cash dividends. As a result, the company has returned an aggregate of $694 million to shareholders in the first nine months of the fiscal year. The company intends to return $1.0 billion to shareholders in fiscal 2017.

For fiscal 2018, NVIDIA intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases. The company's board of directors has authorized an additional $2.00 billion under the company's stock repurchase program for a total of $2.96 billion available through the end of December 2020.

The company announced a 22 percent increase in its quarterly cash dividend to $0.14 per share from $0.115 per share, to be paid with its next quarterly cash dividend on December 19, 2016, to all shareholders of record on November 28, 2016.

Q3 FY2017 Summary

                                                                            
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                                    GAAP                                    
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($ in millions except                                                       
 earnings per share)       Q3 FY17  Q2 FY17  Q3 FY16     Q/Q         Y/Y    
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Revenue                   $  2,004 $  1,428 $  1,305      Up 40%      Up 54%
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Gross margin                 59.0%    57.9%    56.3%  Up 110 bps  Up 270 bps
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Operating expenses        $    544 $    509 $    489       Up 7%      Up 11%
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Operating income          $    639 $    317 $    245     Up 102%     Up 161%
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Net income*               $    542 $    261 $    246     Up 108%     Up 120%
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Diluted earnings per                                                        
 share*                   $   0.83 $   0.41 $   0.44     Up 102%      Up 89%
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                                  Non-GAAP                                  
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($ in millions except                                                       
 earnings per share)       Q3 FY17  Q2 FY17  Q3 FY16     Q/Q         Y/Y    
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Revenue                   $  2,004 $  1,428 $  1,305      Up 40%      Up 54%
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Gross margin                 59.2%    58.1%    56.5%  Up 110 bps  Up 270 bps
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Operating expenses        $    478 $    448 $    430       Up 7%      Up 11%
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Operating income          $    708 $    382 $    308      Up 85%     Up 130%
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Net  income                                $        570  $        313  $        255            Up  82%          Up  124%
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Diluted  earnings  per                                                                                                                
  share                                        $      0.94  $      0.53  $      0.46            Up  77%          Up  104%
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