EX-99.1 3 e15441ex99_1.txt PRESS RELEASE Exhibit 99.1 NVIDIA REPORTS OPERATING RESULTS FOR SECOND QUARTER FISCAL YEAR 2004 Strong Product Leadership Drives 13.5 Percent Quarter-Over-Quarter Revenue Growth SANTA CLARA, CA. - August 7, 2003 - NVIDIA(R) Corporation (Nasdaq: NVDA) today reported financial results for the second quarter of fiscal 2004 ended July 27, 2003. 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. 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 ========== ==========