NVIDIA Reports Operating Results For The Third Quarter Of Fiscal Year 2007

NVIDIA Reports Operating Results For The Third Quarter Of Fiscal Year 2007

NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2007 ended October 29, 2006. For the third quarter of fiscal 2007, revenue increased to a record $820.6 million, compared to $583.4 million for the third quarter of fiscal 2006, an increase of 41 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2007 was $106.5 million, or $0.27 per diluted share. GAAP net income for the third quarter of fiscal 2007 includes expenses of $42.6 million, net of tax, which is comprised primarily of stock-based compensation expense plus a one-time charge associated with licensing certain patents.

Non-GAAP net income for the third quarter of fiscal 2007, which excludes SFAS 123R and other stock-based compensation charges and the related tax impact, was $149.2 million, or $0.39 per diluted share. For the second quarter of fiscal 2007 ended July 30, 2006, previously reported revenue was $687.5 million. GAAP net income for the second quarter of fiscal 2007 was $86.8 million, or $0.22 per diluted share. GAAP net income for the second quarter of fiscal 2007 includes stock-based compensation expense net of tax of $25.3 million.

Non-GAAP net income for the second quarter of fiscal 2007, which excludes SFAS 123R and other stock-based compensation charges and the related tax impact, was $112.0 million, or $0.29 per diluted share. Revenue for the nine months ended October 29, 2006 was a record $2.19 billion, compared to revenue of $1.74 billion for the nine months ended October 30, 2005, an increase of 26 percent. “The third quarter was one of the best in NVIDIA’s history,” said Jen-Hsun Huang, president and CEO of NVIDIA. “For the third consecutive quarter, we delivered record revenue as we continued to gain share in each of our core businesses.”

“This week, we made two announcements that set the foundation for continued strong growth in the coming year and beyond. First, we announced the GeForce 8800 and nForce 680i, which represent the most ambitious undertaking in the history of the Company. The GeForce 8800 is the world’s first DX10 unified shader GPU. The nForce 680i is the highest performance motherboard supporting Intel’s exciting Core 2 Duo processors. The combination of GeForce 8800 and nForce 680i delivers what we believe are the perfect technologies to support the biggest confluence of technology changes to hit our industry in the last 10 years — Windows Vista, DX10 and Blu-ray/HD. Second, we announced the acquisition of PortalPlayer. By combining our GPU technology with PortalPlayer’s application processor expertise, we intend to be a major player in the mobile industry by delivering the two most essential technologies for next generation handheld devices,” Huang said.

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