<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>e15441ex99_1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
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.
<PAGE>
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.
<PAGE>
NVIDIA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
July 27, July 28, July 27, July 28,
2003 2002 2003 2002
-------- -------- -------- ----------
<S> <C> <C> <C> <C>
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
</TABLE>
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(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%.
<PAGE>
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
========== ==========
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