NVIDIA (
Certain statements in this press release including, but not limited to statements as to: the company's financial outlook for the first quarter of fiscal 2012; the company's expectations with respect to the number of new products to be introduced by PC manufacturers that use the company's graphics; the company's expectations with respect to the use of its products by customers, including Audi, Samsung, BMW and Tesla Motors; the company's development plans for a custom CPU that will use the ARM instruction set; the company's transformation; the company's extension of leadership in visual computing; the company's investment in mobile and parallel computing driving growth; Tegra's position in revolutionizing super phones and tablets; the company's prospects; the company's quad-core mobile processor being ahead of the competition; timing of release of tablets and phones; and the effects of the company's patents on modern computing 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 faster or more efficient technology; 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 October 31, 2010. 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.
© 2011 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Tegra and Tesla 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.
ARM, AMBA and ARM Powered are registered trademarks of ARM Limited. Cortex, MPCore and Mali are trademarks of ARM Limited. All other brands or product names are the property of their respective holders. "ARM" is used to represent ARM Holdings plc; its operating company ARM Limited; and the regional subsidiaries ARM Inc.; ARM KK; ARM Korea Limited.; ARM Taiwan Limited; ARM France SAS; ARM Consulting (Shanghai) Co. Ltd.; ARM Germany GmbH; ARM Embedded Technologies Pvt. Ltd.; ARM Norway, AS and ARM Sweden AB.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
--------------------- --------------------------
January 30, January 31, January 30, January 31,
2011 2010 2011 2010
-------- -------- ---------- ----------
Revenue $886,376 $982,488 $3,543,309 $3,326,445
Cost of revenue 460,017 543,767 2,134,219 2,149,522
-------- -------- ---------- ----------
Gross profit 426,359 438,721 1,409,090 1,176,923
Operating expenses
Research and
development 215,563 216,251 848,830 908,851
Sales, general and
administrative 88,018 88,188 361,513 367,017
Legal settlement (57,000) (A) - (57,000) (A) -
-------- -------- ---------- ----------
Total operating
expenses 246,581 304,439 1,153,343 1,275,868
-------- -------- ---------- ----------
Operating income
(loss) 179,778 134,282 255,747 (98,945)
Interest and other
income, net 6,128 5,139 15,422 16,651
-------- -------- ---------- ----------
Income (loss) before
income tax expense 185,906 139,421 271,169 (82,294)
Income tax expense
(benefit) 14,255 8,345 18,023 (14,307)
-------- -------- ---------- ----------
Net income (loss) $171,651 $131,076 $ 253,146 $ (67,987)
======== ======== ========== ==========
Basic net income
(loss) per share $ 0.29 $ 0.24 $ 0.44 $ (0.12)
======== ======== ========== ==========
Diluted net income
(loss) per share $ 0.29 $ 0.23 $ 0.43 $ (0.12)
======== ======== ========== ==========
Shares used in basic
per share computation 583,439 557,479 575,177 549,574
Shares used in diluted
per share computation 601,559 582,081 588,684 549,574
(A) On January 10, 2011, the Company and Intel entered into a new six-year
cross licensing agreement and both parties also agreed to settle all
outstanding legal disputes. For accounting purposes, the fair valued
benefit prescribed to the settlement portion was $57.0 million.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
January 30, January 31,
2011 2010
----------- -----------
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $ 2,490,563 $ 1,728,227
Accounts receivable, net 348,770 374,963
Inventories 345,525 330,674
Prepaid expenses and other current assets 42,092 46,966
----------- -----------
Total current assets 3,226,950 2,480,830
Property and equipment, net 614,431 571,858
Goodwill 369,844 369,844
Intangible assets, net 243,171 120,458
Deposits and other assets 40,850 42,928
----------- -----------
Total assets $ 4,495,246 $ 3,585,918
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 286,138 $ 344,527
Accrued liabilities and other current liabilities 656,544 439,851
----------- -----------
Total current liabilities 942,682 784,378
Other long-term liabilities 347,713 111,950
Capital lease obligations, long term 23,389 24,450
Stockholders' equity 3,181,462 2,665,140
----------- -----------
Total liabilities and stockholders' equity $ 4,495,246 $ 3,585,918
=========== ===========
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
-----------------------------------------
January 30, October 31, January 31,
2011 2010 2010
----------- ----------- -----------
GAAP gross profit $ 426,359 $ 392,062 $ 438,721
GAAP gross margin 48.1% 46.5% 44.7%
Net charge against cost of
revenue arising from a weak
die/packaging material set - - -
Stock option purchase charge
related to cost of revenue - - -
----------- ----------- -----------
Non-GAAP gross profit $ 426,359 $ 392,062 $ 438,721
=========== =========== ===========
Non-GAAP gross margin 48.1% 46.5% 44.7%
GAAP operating expenses $ 246,581 $ 288,279 $ 304,439
Net charge against operating
expenses arising from a
weak die/packaging material
set - - -
Stock option purchase charge
related to operating
expenses - - -
Legal settlement 57,000 (C) - -
----------- ----------- -----------
Non-GAAP operating expenses $ 303,581 $ 288,279 $ 304,439
=========== =========== ===========
GAAP net income (loss) $ 171,651 $ 84,862 $ 131,076
Total pre-tax impact of
non-GAAP adjustments (57,000) - -
Income tax impact of
non-GAAP adjustments 24,359 (D) - -
----------- ----------- -----------
Non-GAAP net income $ 139,010 $ 84,862 $ 131,076
=========== =========== ===========
Diluted net income (loss) per
share
GAAP $ 0.29 $ 0.15 $ 0.23
=========== =========== ===========
Non-GAAP $ 0.23 $ 0.15 $ 0.23
=========== =========== ===========
Shares used in GAAP diluted net
income (loss) per share
computation 601,559 582,648 582,081
Cumulative impact of
non-GAAP adjustments - - -
----------- ----------- -----------
Shares used in non-GAAP diluted
net income (loss) per share
computation 601,559 582,648 582,081
=========== =========== ===========
Metrics:
GAAP net cash flow provided by
operating activities $ 434,674 $ 212,177 $ 69,245
Purchase of property and
equipment and intangible
assets (21,344) (21,823) (22,575)
----------- ----------- -----------
Free cash flow $ 413,330 $ 190,354 $ 46,670
=========== =========== ===========
Twelve Months Ended
--------------------------------
January 30, January 31,
2011 2010
----------- -----------
GAAP gross profit $ 1,409,090 $ 1,176,923
GAAP gross margin 39.8% 35.4%
Net charge against cost of
revenue arising from a weak
die/packaging material set 181,193 (A) 95,878 (A)
Stock option purchase charge
related to cost of revenue - 11,412 (B)
----------- -----------
Non-GAAP gross profit $ 1,590,283 $ 1,284,213
=========== ===========
Non-GAAP gross margin 44.9% 38.6%
GAAP operating expenses $ 1,153,343 $ 1,275,868
Net charge against operating
expenses arising from a
weak die/packaging material
set (12,705) (A) 1,929 (A)
Stock option purchase charge
related to operating
expenses - (128,829) (B)
Legal settlement 57,000 (C) -
----------- -----------
Non-GAAP operating expenses $ 1,197,638 $ 1,148,968
=========== ===========
GAAP net income (loss) $ 253,146 $ (67,987)
Total pre-tax impact of
non-GAAP adjustments 136,898 234,190
Income tax impact of
non-GAAP adjustments (8,469) (D) (24,820) (D)
----------- -----------
Non-GAAP net income $ 381,575 $ 141,383
=========== ===========
Diluted net income (loss) per
share
GAAP $ 0.43 $ (0.12)
=========== ===========
Non-GAAP $ 0.65 $ 0.25
=========== ===========
Shares used in GAAP diluted net
income (loss) per share
computation 588,684 549,574
Cumulative impact of
non-GAAP adjustments - 18,488 (E)
----------- -----------
Shares used in non-GAAP diluted
net income (loss) per share
computation 588,684 568,062
=========== ===========
Metrics:
GAAP net cash flow provided by
operating activities $ 675,797 $ 487,807
Purchase of property and
equipment and intangible
assets (97,890) (77,601)
----------- -----------
Free cash flow $ 577,907 $ 410,206
=========== ===========
(A) Excludes a charge related to the weak die/packaging material set that
was used in certain versions of our previous generation chips, net of
insurance reimbursement.
(B) 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.
(C) On January 10, 2011, the Company and Intel entered into a new six-year
cross licensing agreement and both parties also agreed to settle all
outstanding legal disputes. For accounting purposes, the fair valued
benefit prescribed to the settlement portion was $57.0 million.
(D) The income tax impact of non-GAAP adjustments has only been reported
during fiscal quarters that include other GAAP to non-GAAP reconciling
items, as well as in the full fiscal year results during which the GAAP
to non-GAAP reconciling items occur. As such, any effective tax rate
differences between GAAP and non-GAAP results that result from such
adjustments have not been reported separately in the non-GAAP results
for a fiscal quarter that does not contain other GAAP to non-GAAP
reconciling items.
(E) Reflects an adjustment to diluted shares to reflect a non-GAAP net
income versus a GAAP net loss.
