NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
|
| | | | | | | |
| | Three Months Ended |
| | April 27, | | April 28, |
| | 2014 | | 2013 |
| | | | |
| Revenue | $ | 1,102,787 |
| | $ | 954,739 |
|
| Cost of revenue | 498,585 |
| | 436,171 |
|
| Gross profit | 604,202 |
| | 518,568 |
|
| Operating expenses | | | |
| Research and development | 334,263 |
| | 327,161 |
|
| Sales, general and administrative | 118,580 |
| | 108,626 |
|
| Total operating expenses | 452,843 |
| | 435,787 |
|
| Operating income | 151,359 |
| | 82,781 |
|
| Interest income | 5,710 |
| | 5,076 |
|
| Interest expense | 11,471 |
| | 853 |
|
| Other income, net | 17,684 |
| | 1,058 |
|
| Income before income tax expense | 163,282 |
| | 88,062 |
|
| Income tax expense | 26,766 |
| | 10,171 |
|
| Net income | $ | 136,516 |
| | $ | 77,891 |
|
| | | | |
| Net income per share: | | | |
| Basic | $ | 0.24 |
| | $ | 0.13 |
|
| Diluted | $ | 0.24 |
| | $ | 0.13 |
|
| | | | |
| Weighted average shares used in per share computation: | | | |
| Basic | 559,092 |
| | 616,872 |
|
| Diluted | 570,422 |
| | 619,302 |
|
|
| | | | | | | | | |
| NVIDIA CORPORATION |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| (Unaudited) |
| | | | | | |
| | | | April 27, | | January 26, |
| | | | 2014 | | 2014 |
| ASSETS | | | | |
| | | | | | |
| Current assets: | | | | |
| | Cash, cash equivalents and marketable securities | | $ | 4,347,817 |
| | $ | 4,671,810 |
|
| | Accounts receivable, net | | 396,438 |
| | 426,357 |
|
| | Inventories | | 393,280 |
| | 387,765 |
|
| | Prepaid expenses and other current assets | | 136,263 |
| | 138,779 |
|
| | Total current assets | | 5,273,798 |
| | 5,624,711 |
|
| | | | | | |
| Property and equipment, net | | 570,802 |
| | 582,740 |
|
| Goodwill | | 643,179 |
| | 643,179 |
|
| Intangible assets, net | | 277,530 |
| | 296,012 |
|
| Other assets | | 99,354 |
| | 104,252 |
|
| | Total assets | | $ | 6,864,663 |
| | $ | 7,250,894 |
|
| | | | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
| | | | | | |
| Current liabilities: | | | | |
| | Accounts payable | | $ | 309,008 |
| | $ | 324,391 |
|
| | Accrued liabilities and other current liabilities | | 588,937 |
| | 621,105 |
|
| | Total current liabilities | | 897,945 |
| | 945,496 |
|
| | | | | | |
| Long-term debt | | 1,363,276 |
| | 1,356,375 |
|
| Other long-term liabilities | | 419,774 |
| | 475,125 |
|
| Capital lease obligations, long-term | | 16,683 |
| | 17,500 |
|
| | | | | |
| Stockholders' equity | | 4,166,985 |
| | 4,456,398 |
|
| | Total liabilities and stockholders' equity | | $ | 6,864,663 |
| | $ | 7,250,894 |
|
|
| | | | | | | | | | | | |
| NVIDIA CORPORATION |
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
| (In thousands, except per share data) |
| (Unaudited) |
| | | |
| | | Three Months Ended |
| | | April 27, | | January 26, | | April 28, |
| | | 2014 | | 2014 | | 2013 |
| | | | | | | |
| GAAP gross profit | | $ | 604,202 |
| | $ | 619,242 |
| | $ | 518,568 |
|
| GAAP gross margin | | 54.8 | % | | 54.1 | % | | 54.3 | % |
| Stock-based compensation expense included in cost of revenue (A) | | 2,919 |
| | 2,777 |
| | 2,653 |
|
| Legal settlement | | $ | — |
| | $ | 1,450 |
| | $ | — |
|
| Credit from a weak die/packaging material set (B) | | $ | — |
| | $ | (7,782 | ) | | $ | — |
|
| Non-GAAP gross profit | | $ | 607,121 |
| | $ | 615,687 |
| | $ | 521,221 |
|
| Non-GAAP gross margin | | 55.1 | % | | 53.8 | % | | 54.6 | % |
| | | | | | | |
| GAAP operating expenses | | $ | 452,843 |
| | $ | 452,318 |
| | $ | 435,787 |
|
| Stock-based compensation expense included in operating expense (A) | | (32,602 | ) | | (33,427 | ) | | (30,744 | ) |
| Acquisition-related costs (C) | | (9,441 | ) | | (9,250 | ) | | (8,861 | ) |
| Other expense (D) | | — |
| | (1,845 | ) | | — |
|
| Non-GAAP operating expenses | | $ | 410,800 |
| | $ | 407,796 |
| | $ | 396,182 |
|
| | | | | | | |
| GAAP interest and other income, net | $ | 11,923 |
| | $ | 1,964 |
| | $ | 5,281 |
|
| Gain on sale of a non-affiliated investment | | $ | (16,982 | ) | | $ | (3,074 | ) | | $ | — |
|
| Interest expense related to amortization of debt discount | | $ | 6,901 |
| | $ | 4,600 |
| | $ | — |
|
| Non-GAAP interest and other income, net | $ | 1,842 |
| | $ | 3,490 |
| | $ | 5,281 |
|
| | | | | | | |
| GAAP net income | | $ | 136,516 |
| | $ | 146,917 |
| | $ | 77,891 |
|
| Total pre-tax impact of non-GAAP adjustments | | 34,881 |
| | 42,493 |
| | 42,258 |
|
| Income tax impact of non-GAAP adjustments | | (5,342 | ) | | (1,924 | ) | | (6,348 | ) |
| Non-GAAP net income | | $ | 166,055 |
| | $ | 187,486 |
| | $ | 113,801 |
|
| | | | | | | |
| Diluted net income per share | | | | | | |
| GAAP | | $ | 0.24 |
| | $ | 0.25 |
| | $ | 0.13 |
|
| Non-GAAP | | $ | 0.29 |
| | $ | 0.32 |
| | $ | 0.18 |
|
| | | | | | | |
| Shares used in diluted net income per share computation | | 570,422 |
| | 577,356 |
| | 619,302 |
|
| | | | | | | |
| Metrics: | | | | | | |
| GAAP net cash flow provided by operating activities | | $ | 151,022 |
| | $ | 400,712 |
| | $ | 175,650 |
|
| Purchase of property and equipment and intangible assets | | (29,068 | ) | | (66,374 | ) | | (65,667 | ) |
| Free cash flow | | $ | 121,954 |
| | $ | 334,338 |
| | $ | 109,983 |
|
|
| | | | | | | | | | | | |
| (A) Excludes stock-based compensation as follows: | | | | | | |
| | | Three Months Ended |
| | | April 27, | | January 26, | | April 28, |
| | | 2014 | | 2014 | | 2013 |
| Cost of revenue | | $ | 2,919 |
| | $ | 2,777 |
| | $ | 2,653 |
|
| Research and development | | $ | 20,494 |
| | $ | 21,548 |
| | $ | 21,935 |
|
| Sales, general and administrative | | $ | 12,108 |
| | $ | 11,879 |
| | $ | 8,809 |
|
| | | | | | | |
| (B) Release of the remaining warranty reserve related to a weak die/packaging material set, as of January 26, 2014. |
| | | | | | | |
| (C) Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges, and other credits related to acquisitions. |
| | | | | | | |
| (D) Includes intangible asset write-off and legal settlement costs, net of credits. |
