NVIDIA REPORTS OPERATING RESULTS FOR FIRST QUARTER FISCAL YEAR 2005
SANTA CLARA, CA. – May 6, 2004 –NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the first quarter of fiscal 2005 ended April 25, 2004.
For the first quarter offiscal 2005, revenue increased to $471.9 million, compared to $405.0 million for the first quarter of fiscal 2004, an increase of 17 percent. Net income for the first quarter of fiscal 2005 was $21.3 million, or $0.12 per diluted share, compared to net income of $19.7 million, or $0.12 per diluted share, for the first quarter of fiscal 2004.
“I am pleased that our core businesses delivered steady growth and gross margin continued to improve,” stated Jen-Hsun Huang, president and CEO of NVIDIA. “We also reached a number of significant milestones in the quarter. The aggressive investments we’ve made in our GPU, MCP and wireless media processors enabled us to introduce a record number of market changing products.”
First Quarter Fiscal 2005 Highlights
Introduced the most powerfulGraphics Processing Unit (GPU) in our history, the GeForce™ 6800 – the industry’s first superscalar GPU to support Microsoft DirectX 9.0 Shader Model 3.0. Launched production of the NVIDIA nForce™ 3 250Gb, the industry’s first single-chip Media and Communications Processor (MCP) to offer gigabit Ethernet, dual independent serial ATA controllers, industry leading RAID features and hardware security processing.
Introduced two exciting new wireless media processors, the GoForce™ 4000 and 3000, and announced the availability of the AR10 3D core for use in cellular phones. These processors deliver some of the most advanced features available today yet require as little as one-tenth of the powercompared to equivalent software-based cameras. Motorola announced the incorporation of the GoForce 4000 in their upcoming new 3G mobile phones.
Gross margin improved 220 basis points over the gross margin for the fourth quarterfiscal 2004.
Introduced the NVIDIA Quadro® FX 4000 and 4000 SDI graphics solutions, enabling NVIDIA’s entry into new professional markets including on-air HD broadcast.
Announced Gelato™, the first 3D final-film renderer to use GPUs to achieve high levels of performance forwhat was previously slow, offline rendering.
Led the PCI Express transition with the only top-to-bottom family of PCI Express GPUs.
Purchased assets from iReady that will further enable our server and workstation business opportunities created by our line of NVIDIA nForce3 Professional MCPs.
Gained share in both the overall PC market and the desktop PC segment.
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2005 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) 679-0543. A live web cast (listen-only mode) of the conference call will be held at the NVIDIA investor relations web sitehttp://nvidia.com/ir and athttp://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 second quarter fiscal 2005.
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 game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 1,900 people worldwide. For more information, visit the Company’s Web site atwww.nvidia.com <http://www.nvidia.com>.
Certain statements in this press release regarding earnings in the first quarter of fiscal 2005, 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 Co mpany'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 for the fiscal year ended January 25, 2004, filed with the Securities and Exchange Commission on March 29, 2004, particularly those sections entitled "Business Risks," for a more complete discussion of these and other risks and uncertainties.
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