SANTA CLARA, CA--(Marketwire - Aug 11, 2011) - NVIDIA (
- Revenue increased 5.7 percent to $1.02 billion from $962.0 million in the previous quarter.
- GAAP net income was $151.6 million, or $0.25 per diluted share; non-GAAP net income was $193.5 million, or $0.32 per diluted share.
- GAAP gross margin increased to 51.7 percent, a record for the fourth consecutive quarter; non-GAAP gross margin increased to 51.9 percent from the first quarter's 50.6 percent.
NVIDIA (
(in millions except per Q2 FY12 Q1 FY12 Q2 FY12 Q1 FY12
share data) GAAP GAAP NON-GAAP NON-GAAP
---------- ---------- ---------- ----------
Revenue $ 1,017 $ 962.0 $ 1,017 $ 962.0
---------- ---------- ---------- ----------
Gross Margin 51.7% 50.4% 51.9% 50.6%
---------- ---------- ---------- ----------
Operating Expenses $ 351.3 $ 329.6 $ 306.0 $ 296.8
---------- ---------- ---------- ----------
Net Income $ 151.6 $ 135.2 $ 193.5 $ 165.7
---------- ---------- ---------- ----------
Earnings Per Share $ 0.25 $ 0.22 $ 0.32 $ 0.27
---------- ---------- ---------- ----------
On a GAAP basis, the company recorded net income of $151.6 million, or $0.25 per diluted share, for the second quarter of fiscal 2012. This includes a two-cent dilutive impact from the Icera acquisition. It compares with net income of $135.2 million, or $0.22 per diluted share, in the prior quarter. In the same period a year earlier, the company had a net loss of $141.0 million, or $0.25 per diluted share.
On a non-GAAP basis -- which excludes stock-based compensation, amortization of acquisition-related intangible assets, other acquisition related costs, and the tax impact associated with these items -- net income was $193.5 million, or $0.32 per diluted share. That compares with net income of $165.7 million, or $0.27 per diluted share, in the prior quarter, and net income of $47.6 million, $0.08 per share, in the same period a year earlier.
GAAP gross margin was 51.7 percent, a fourth consecutive record, compared with 50.4 percent in the previous quarter and 16.6 percent in the same period a year earlier. Non-GAAP gross margin, at 51.9 percent, was also a record, and compares with 50.6 percent in the prior quarter and 39.2 percent in the same period a year earlier.
"We grew solidly this quarter," said Jen-Hsun Huang, NVIDIA president and chief executive officer. "Consumer demand for notebooks powered by our GeForce GPU, with its unique Optimus technology, resulted in record revenue for these products.
"The future of computing is mobile and visual. With Tegra's momentum and our growing GPU businesses, we are ideally positioned to lead the industry forward," he said.
Outlook
Our outlook for the third quarter of fiscal 2012 is as follows:
- Revenue is expected to be up 4 to 6 percent from the second
quarter
- GAAP and non-GAAP gross margins are expected to be flat
- GAAP operating expenses are expected to be in the range of $361 million
to $366 million; non-GAAP operating expenses are expected to be $319
million to $321 million
- Our GAAP and non-GAAP tax rates are both expected to be 15 to 17 percent
We estimate depreciation and amortization for the second quarter to be approximately $53 million to $57 million. Capital expenditures are expected to be in the range of $25 to $35 million.
Diluted shares for the third quarter are expected to be approximately 615 million.
Note: this outlook now includes Icera.
Second Quarter Fiscal 2012 and Recent Highlights:
- NVIDIA completed the Icera acquisition on June 10, 2011.
- NVIDIA launched the GeForce GTX 580M for gaming notebooks.
- Optimus™, our notebook power-saving technology, is now available through our whole range of GPUs, top to bottom, and across three generations.
- NVIDIA Tesla processors power the fastest supercomputer in Russia.
- NVIDIA and its partners launched six new Tegra®-based superphones (up from two in the previous quarter), including the Motorola Photon 4G and Samsung Galaxy R; and four new tablets, including the Samsung Galaxy Tab 10.1.
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 2012 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 2012.
Non-GAAP Measures
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 net income,
and non-GAAP net income 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 a charge related to the weak die/packaging material set that was
used in certain versions of NVIDIA's previous generation MCP and GPU
products, net of insurance reimbursement, stock-based compensation,
amortization of acquisition-related intangible assets, other
acquisition-related costs, 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 (
Certain statements in this press release including, but not limited to
statements as to: the future of computing; Tegra's momentum; the strength
of the company's GPU business; the company's positioning to shape the
future of computing; the company's financial outlook for the third quarter
of fiscal 2012; efforts to increase gross margin and control operating
expenses; the company's strategic investments in the mobile space; 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 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 May 1, 2011. 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.
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
------------------------ ------------------------
July 31, August 1, July 31, August 1,
2011 2010 2011 2010
------------ ----------- ------------ -----------
Revenue $ 1,016,517 $ 811,208 $ 1,978,556 $ 1,813,021
Cost of revenue 491,233 676,916 968,769 1,222,352
------------ ----------- ------------ -----------
Gross profit 525,284 134,292 1,009,787 590,669
Operating expenses
Research and development 247,721 210,635 479,245 428,740
Sales, general and
administrative 103,533 98,864 201,650 189,743
------------ ----------- ------------ -----------
Total operating
expenses 351,254 309,499 680,895 618,483
------------ ----------- ------------ -----------
Operating income (loss) 174,030 (175,207) 328,892 (27,814)
Interest and other income,
net 3,517 6,160 5,140 9,492
------------ ----------- ------------ -----------
Income (loss) before
income tax expense 177,547 (169,047) 334,032 (18,322)
Income tax expense
(benefit) 25,974 (28,086) 47,240 (14,955)
------------ ----------- ------------ -----------
Net income (loss) $ 151,573 $ (140,961) $ 286,792 $ (3,367)
============ =========== ============ ===========
Basic net income (loss)
per share $ 0.25 $ (0.25) $ 0.48 $ (0.01)
============ =========== ============ ===========
Diluted net income
(loss) per share $ 0.25 $ (0.25) $ 0.47 $ (0.01)
============ =========== ============ ===========
Shares used in basic per
share computation 601,340 572,764 598,077 569,971
Shares used in diluted per
share computation 613,934 572,764 615,552 569,971
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
July 31, January 30,
2011 2011
------------- -------------
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 2,474,496 $ 2,490,563
Accounts receivable, net 419,944 348,770
Inventories 361,911 345,525
Prepaid expenses and other current assets 61,206 42,092
------------- -------------
Total current assets 3,317,557 3,226,950
Property and equipment, net 550,896 568,857
Goodwill 593,513 369,844
Intangible assets, net 358,136 288,745
Deposits and other assets 93,512 40,850
------------- -------------
Total assets $ 4,913,614 $ 4,495,246
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 297,813 $ 286,138
Accrued liabilities and other current
liabilities 662,486 656,544
------------- -------------
Total current liabilities 960,299 942,682
Other long-term liabilities 241,353 347,713
Capital lease obligations, long term 22,493 23,389
Stockholders' equity 3,689,469 3,181,462
------------- -------------
Total liabilities and stockholders' equity $ 4,913,614 $ 4,495,246
============= =============
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
----------------------------- ---------------------
July 31, May 1, August 1, July 31, August 1,
2011 2011 2010 2011 2010
-------- -------- --------- ---------- ---------
GAAP gross profit $525,284 $484,503 $ 134,292 $1,009,787 $ 590,669
GAAP gross margin 51.7% 50.4% 16.6% 51.0% 32.6%
Stock-based
compensation
expense included
in cost of
revenue (A) 2,748 2,477 2,289 5,225 4,092
Net charge against
cost of revenue
arising from a
weak die/packaging
material set (B) - - 181,193 - 181,193
-------- -------- --------- ---------- ---------
Non-GAAP gross profit $528,032 $486,980 $ 317,774 $1,015,012 $ 775,954
======== ======== ========= ========== =========
Non-GAAP gross
margin 51.9% 50.6% 39.2% 51.3% 42.8%
GAAP operating
expenses $351,254 $329,641 $ 309,499 $ 680,895 $ 618,483
Stock-based
compensation
expense included
in operating
expense (A) (33,202) (29,262) (22,342) (62,464) (45,716)
Amortization of
acquisition-related
intangible assets (4,454) (2,296) (2,295) (6,750) (4,591)
Net charge against
operating
expenses arising
from a weak
die/packaging
material set (B) - - (12,705) - (12,705)
Other acquisition-
related costs (C) (7,562) (1,255) - (8,817) -
-------- -------- --------- ---------- ---------
Non-GAAP operating
expenses $306,036 $296,828 $ 272,157 $ 602,864 $ 555,471
======== ======== ========= ========== =========
GAAP net income
(loss) $151,573 $135,219 $(140,961) $ 286,792 $ (3,367)
Total pre-tax
impact of non-
GAAP adjustments 47,966 35,290 220,824 83,256 248,297
Income tax impact
of non-GAAP
adjustments (5,994) (4,796) (32,217) (10,790) (28,325)
-------- -------- --------- ---------- ---------
Non-GAAP net income $193,545 $165,713 $ 47,646 $ 359,258 $ 216,605
======== ======== ========= ========== =========
Diluted net income
(loss) per share
GAAP $ 0.25 $ 0.22 $ (0.25) $ 0.47 $ (0.01)
======== ======== ========= ========== =========
Non-GAAP $ 0.32 $ 0.27 $ 0.08 $ 0.58 $ 0.38
======== ======== ========= ========== =========
Shares used in diluted
net income (loss) per
share computation 613,934 613,474 572,764 615,552 569,971
Computation of Icera
diluted net income
(loss) impact:
Net income (loss) $(12,437)
Diluted net income
(loss) per share $ (0.02)
========
Shares used in
diluted net
income (loss) per
share computation 613,934
(A) Excludes stock-based
compensation
as follows: Three months ended Six months ended
------------------------------ ----------------------
July 31, May 1, August 1, July 31, August 1,
2011 2011 2010 2011 2010
--------- --------- ---------- ----------- ----------
Cost of revenue $ 2,748 $ 2,477 $ 2,289 $ 5,225 $ 4,092
Research and
development $ 21,697 $ 18,589 $ 14,532 $ 40,286 $ 29,146
Sales, general and
administrative $ 11,505 $ 10,673 $ 7,810 $ 22,178 $ 16,570
(B) Excludes a charge related to the weak die/packaging material set, net
of insurance reimbursement.
(C) Other acquisition-related costs comprise of transaction costs,
compensation charges and restructuring costs related to the acquisition
of Icera, Inc.
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
(In millions)
Q3 FY2012 Outlook
--------------------------
October 30, October 30,
2011 2011
------------ ------------
LOW HIGH
------------ ------------
GAAP operating expenses $ 360.5 $ 365.5
Stock-based compensation expense included in
operating expense (31.5) (32.5)
Amortization of acquisition-related
intangible assets (4.5) (5.5)
Other acquisition-related costs (A) (5.5) (6.5)
------------ ------------
Non-GAAP operating expenses $ 319.0 $ 321.0
============ ============
(A) Other acquisition related costs comprise of transaction costs,
compensation charges and restructuring costs related to the acquisition
of Icera, Inc.
Contact Information:
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