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 first quarter fiscal 2013 financial results and current financial prospects today at 5:00 a.m. Pacific Time (8:00 a.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 second quarter fiscal 2013.
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 income tax expense, non-GAAP net income, and non-GAAP net income, or earnings, 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 non-recurring charge related to a legal settlement, stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a non-recurring contribution expense, 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 impact of Kepler GPUs on our business; reviews of our newly launched desktop products; the growth of Tegra, driven by great mobile device wins and the upcoming Windows on ARM launch; important news at our GPU Technology Conference; new ways that the GPU will enhance mobile and cloud computing; the company's financial outlook for the second quarter of fiscal 2013; the company's tax rate for the second quarter and fiscal year 2013; 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-K for the fiscal year ended January 29, 2012. 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.
© 2012 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Kepler, and Tegra 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 INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
---------------------------
April 29, May 1,
2012 2011
------------- -------------
Revenue $ 924,877 $ 962,039
Cost of revenue 461,513 477,536
------------- -------------
Gross profit 463,364 484,503
Operating expenses
Research and development 283,902 231,524
Sales, general and administrative 106,636 98,117
------------- -------------
Total operating expenses 390,538 329,641
------------- -------------
Operating income 72,826 154,862
Interest and other income, net 4,269 1,623
------------- -------------
Income before income tax expense 77,095 156,485
Income tax expense 16,658 21,266
------------- -------------
Net income $ 60,437 $ 135,219
============= =============
Basic net income per share $ 0.10 $ 0.23
============= =============
Diluted net income per share $ 0.10 $ 0.22
============= =============
Shares used in basic per share computation 615,780 594,802
Shares used in diluted per share computation 623,786 613,474
NVIDIA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
April 29, January 29,
2012 2012
------------- -------------
ASSETS
Current assets:
Cash, cash equivalents and marketable
securities $ 3,130,812 $ 3,129,576
Accounts receivable, net 411,155 336,143
Inventories 342,707 340,297
Prepaid expenses and other current assets 147,442 99,342
------------- -------------
Total current assets 4,032,116 3,905,358
Property and equipment, net 553,541 560,072
Goodwill 641,030 641,030
Intangible assets, net 363,395 326,136
Other assets 118,085 120,332
------------- -------------
Total assets $ 5,708,167 $ 5,552,928
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 395,578 $ 335,072
Accrued liabilities and other current
liabilities 551,826 594,886
------------- -------------
Total current liabilities 947,404 929,958
Other long-term liabilities 452,505 455,807
Capital lease obligations, long term 20,830 21,439
Stockholders' equity 4,287,428 4,145,724
------------- -------------
Total liabilities and stockholders' equity $ 5,708,167 $ 5,552,928
============= =============
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
Three Months Ended
-------------------------------------
April 29, January 29, May 1,
2012 2012 2011
----------- ----------- -----------
GAAP gross profit $ 463,364 $ 490,013 $ 484,503
GAAP gross margin 50.1% 51.4% 50.4%
Stock-based compensation expense
included in cost of revenue (A) 2,526 3,048 2,477
Legal settlement (B) - 7,300 -
----------- ----------- -----------
Non-GAAP gross profit $ 465,890 $ 500,361 $ 486,980
=========== =========== ===========
Non-GAAP gross margin 50.4% 52.5% 50.6%
GAAP operating expenses $ 390,538 $ 367,696 $ 329,641
Stock-based compensation expense
included in operating expense
(A) (33,043) (32,388) (29,262)
Amortization of acquisition-
related intangible assets (4,342) (5,041) (2,296)
Other acquisition-related costs
(C) (5,171) (5,052) (1,255)
----------- ----------- -----------
Non-GAAP operating expenses $ 347,982 $ 325,215 $ 296,828
=========== =========== ===========
GAAP net income $ 60,437 $ 116,025 $ 135,219
Total pre-tax impact of non-GAAP
adjustments 45,082 52,829 35,290
Income tax impact of non-GAAP
adjustments (7,989) (10,718) (4,796)
----------- ----------- -----------
Non-GAAP net income $ 97,530 $ 158,136 $ 165,713
=========== =========== ===========
Diluted net income per share
GAAP $ 0.10 $ 0.19 $ 0.22
=========== =========== ===========
Non-GAAP $ 0.16 $ 0.26 $ 0.27
=========== =========== ===========
Shares used in diluted net income per
share computation 623,786 618,599 613,474
(A) Excludes stock-based compensation
as follows: Three Months Ended
-------------------------------------
April 29, January 29, May 1,
2012 2012 2011
----------- ----------- -----------
Cost of revenue $ 2,526 $ 3,048 $ 2,477
Research and development $ 21,207 $ 20,908 $ 18,589
Sales, general and
administrative $ 11,836 $ 11,480 $ 10,673
(B) On February 7, 2012, the Company and Rambus entered into a licensing
agreement and both parties also agreed to settle all outstanding legal
disputes. For accounting purposes, a charge of $7.3 million associated with
the fair value prescribed to the settlement portion was recognized for the
year ended January 29, 2012.
(C) Other acquisition-related costs are comprised of transaction costs,
compensation charges and restructuring costs related to the acquisition of
Icera, Inc. that was completed on June 10, 2011.
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Q2 FY2013 Outlook
-----------------
GAAP gross margin 51.2%
Impact of stock-based compensation (A) 0.3%
-----------------
Non-GAAP gross margin 51.5%
=================
Q2 FY2013 Outlook
-----------------
(In millions)
GAAP operating expenses $ 418.0
Stock-based compensation expense included in operating
expense (29.8)
Amortization of acquisition-related intangible assets (4.5)
Other acquisition-related costs (B) (4.7)
Contribution expense (25.0)
-----------------
Non-GAAP operating expenses $ 354.0
=================
(A) Represents $2.6 million of stock-based compensation expense included in
cost of revenue.
(B) Other acquisition related costs are comprised of transaction costs,
compensation charges and restructuring costs related to the acquisition of
Icera, Inc. that was completed on June 10, 2011.
