Company Achieves Record Quarterly Revenue and Record Annual Revenue; Annual Net Income Increases 78 Percent Year-Over-Year
For the fourth quarter of fiscal 2008, revenue increased to a record $1.20 billion, compared to $878.9 million for the fourth quarter of fiscal 2007, an increase of 37 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2008 was $257.0 million, or $0.42 per diluted share, compared to net income of $163.5 million, or $0.27 per diluted share, for the fourth quarter of fiscal 2007, a net income increase of 57 percent.
Non-GAAP net income for the fourth quarter of fiscal 2008, which excludes stock-based compensation charges, a charge for in-process research and development related to an acquisition closed during the quarter, and the associated tax impact, was $292.6 million, or $0.49 per diluted share.
Annual revenue for the fiscal year ended January 27, 2008 was a record $4.10 billion, compared to revenue of $3.07 billion for the fiscal year ended January 28, 2007, an increase of 34 percent. GAAP net income for the fiscal year ended January 27, 2008 was $797.6 million, or $1.31 per diluted share, compared to GAAP net income of $448.8 million, or $0.76 per diluted share, for the fiscal year ended January 28, 2007, a net income increase of 78 percent.
Non-GAAP net income for the fiscal year ended January 27, 2008, which excludes stock-based compensation charges, a charge for in-process research and development related to an acquisition closed during the year, and the associated tax impact, was $919.3 million, or $1.56 per diluted share.
"Fiscal 2008 was another outstanding and record year for us. Strong demand for GPUs in all market segments drove our growth. Relative to Q4 one year ago, our discrete GPU business grew 80%. Our growth reflects the ever-increasing use of rich graphics in applications from Google Earth to Apple iTunes to online virtual worlds," said Jen-Hsun Huang, president and CEO of NVIDIA.
Mr. Huang continued: "This is the era of visual computing. The richness of the graphics is increasingly central to our computing experience. And at the core of that experience is the GPU, the processor that defines the modern PC."
Fourth Quarter, Fiscal Year 2008, and Recent Highlights: -- Fourth Quarter revenue grew 37 percent year-over-year to a record $1.20 billion. -- Annual revenue increased 34 percent year-over-year to a record $4.10 billion. -- GAAP annual net income increased 78 percent year-over-year to a record $797.6 million. -- GAAP annual gross margin reached a Company high of 45.6 percent, a year-over-year increase of 320 basis points. -- We launched multiple industry-defining products and initiatives: * GeForce(R) 8800 graphics processing family, including the highly-acclaimed 8800GT * GeForce 7000 mGPU -- the first single-chip motherboard GPU for Intel systems * Tesla (TM) computing system -- the high performance computing industry's first C-programmable GPU * Hybrid SLI(R) technology -- the first hybrid technology for PC platforms * CUDA(TM) technology -- the first C-compiler for the GPU * PureVideo(R) HD technology -- the first video decode and post processing technology for Blu-ray and HD DVD -- NVIDIA(R) held #1 segment share in desktop and notebook GPU (Mercury Research PC Graphics 2008 Market Strategy and Forecast Report). -- NVIDIA held #1 segment share in workstation solutions (Jon Peddie Research Q3'07 Workstations and Professional Graphics Report). -- NVIDIA was named Most Respected Public Company by members of the Fabless Semiconductor Association for the second consecutive year. -- NVIDIA was named Forbes Company of the Year. -- We acquired Mental Images, the industry's leading photorealistic rendering technology provider. Mental Image's Mental Ray is the most pervasive ray tracing renderer in industry. -- In February, we announced and completed the acquisition of AGEIA, the industry leader in gaming physics technology.
Conference Call and Web Cast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its fourth quarter fiscal 2008 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 212-231-2901; no password is required. A live Web cast (listen-only mode) of the conference call will be held at the NVIDIA investor relations Web site http://www.nvidia.com/investor 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 first quarter fiscal 2009.
To supplement the Company's Condensed Consolidated Statements of Income presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP net income, and non-GAAP diluted net income per share. In order for our investors to be better able to compare our current results with those of previous periods, we have shown a reconciliation of GAAP to non- GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation, patent license fees for past usage, in-process research & development charges related to acquisitions, a non-recurring credit associated with the net cumulative impact of estimating forfeitures as a result of the adoption of SFAS 123R, and the associated tax impact, where applicable. We believe the presentation of our non-GAAP financial measures enhances the user's overall understanding of our historical financial performance. The presentation of our non-GAAP financial measures is not meant to be considered in isolation or as a substitute for our financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.
NVIDIA is the world leader in visual computing technologies and the inventor of the GPU, a high-performance processor which generates breathtaking, interactive graphics on workstations, personal computers, game consoles, and mobile devices. NVIDIA serves the entertainment and consumer market with its GeForce products, the professional design and visualization market with its Quadro(R) products, and the high-performance computing market with its Tesla products. NVIDIA is headquartered in Santa Clara, Calif. and has offices throughout Asia, Europe, and the Americas. For more information, visit http://www.nvidia.com.
Certain statements in this release including, but not limited to, statements as to: the use and importance of graphics; visual computing; and the role of the GPU 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: slower than anticipated adoption of new technologies or development of a market; the impact of competition and competitive products; technological advances; the development of more effective or efficient GPUs or CPUs; changes in consumer preferences or product uses; incompatibility of technologies; changes in industry standards; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission including its Form 10-Q for the period ended October 28, 2007. Copies of reports filed with the SEC are posted on our 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.