NVIDIA Reports Results for First Quarter Fiscal 2009

Company Achieves 37 Percent Revenue Growth and 34 Percent Net Income Growth Year-Over-Year

SANTA CLARA, Calif., May 8 /PRNewswire-FirstCall/ -- NVIDIA Corporation (NASDAQ: NVDA), the world leader in visual computing technologies, today reported financial results for the first quarter of fiscal 2009 ended April 27, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020613/NVDALOGO)

For the first quarter of fiscal 2009, revenue was $1.15 billion, compared to $844.3 million for the first quarter of fiscal 2008, an increase of 37 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the first quarter of fiscal 2009 increased by 34 percent year-over-year to $176.8 million, or $0.30 per diluted share.

Non-GAAP net income for the first quarter of fiscal 2009, which excludes stock-based compensation charges and the associated tax impact, was $211.8 million, or $0.36 per diluted share.

"The growth of GPUs continues to outpace the PC market. We shipped 42 percent more GPUs this quarter compared to the same period a year ago, resulting in our best first quarter ever," said Jen-Hsun Huang, president and CEO of NVIDIA. "This is the era of visual computing. With a few hundred million GeForce GPUs in the market, developers can now confidently create applications with dazzling graphics. Amazing applications with beautiful graphics are showing up on the Web constantly, driving even faster adoption of GPUs. We expect this positive feedback loop to continue to drive our growth."

    First Quarter Fiscal Year 2009 Highlights:

    -- Revenue grew 37 percent year-over-year.
    -- GAAP net income increased 34 percent year-over-year.
    -- Launched multiple industry-leading products:
        - GeForce(R) 9600 GT GPU: More than double the performance of the
          previous 8600 GTS.
        - GeForce 9800 GX2: New dual GPU board featuring Quad SLI(R)
        - GeForce 9800 GTX: Most flexible GPU to support both two-way and
          three-way SLI technology.
        - GeForce 8800 GT for the Mac Pro: First after-market consumer
          graphics card for the Mac sold directly by NVIDIA.
        - NVIDIA nForce(R) 790i Ultra SLI MCP: Industry's most overclockable
          platform for Intel processors.
        - Quadro(R) FX 3600M Professional: Industry's highest-performance
          notebook GPU.
        - NVIDIA(R) APX 2500 Application Processor: World's lowest-power,
          high-definition computer-on-a-chip.
    -- The Professional Solutions Business achieved record revenue, growing 44
       percent year-over-year.
    -- Shipped first Hybrid SLI DX10 motherboard GPUs - the GeForce 8000 GPU
       series.  The GeForce 8000 GPU series includes GeForce Boost Hybrid SLI
       technology, which can double performance when paired with a GeForce 8
       desktop GPU.
    -- Became a founding member of Stanford University's new Pervasive
       Parallelism Lab (PPL).  The PPL will develop new techniques, tools, and
       training materials to allow software engineers to harness the
       parallelism of the heterogeneous multi-core computing available in
       virtually every new computer.

Conference Call and Web Cast Information

NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2009 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 212-231-2900; no password is required. The conference call will also be Web cast live (listen-only mode) at the following Web sites: http://www.nvidia.com and http://www.streetevents.com. 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/ir 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 second quarter fiscal 2009.

Non-GAAP Measures

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, 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 products, and the high-performance computing market with its Tesla(TM) 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; the significance of visual computing; the role of the GPU, the impact of graphics applications on the growth the GPU market and the rate of GPU adoption; our expected growth; and the expected benefits, materials and technologies to be developed by the PPL 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-K for the fiscal year ended January 27, 2008. 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.

Copyright (C) 2008 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Quadro, Tesla, NVIDIA nForce, and SLI are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries. Other company and product names may be trademarks of the respective companies with which they are associated.

                               NVIDIA CORPORATION
                      (In thousands, except per share data)

                                                                                                                  Three  Months  Ended
                                                                                                            April  27,            April  29,
                                                                                                                2008                      2007

        Revenue                                                                                  $1,153,388              $844,280

        Cost  of  revenue                                                                        638,545                464,142

        Gross  profit                                                                              514,843                380,138

        Operating  expenses:
            Research  and  development                                                  218,830                158,321
            Sales,  general  and  administrative                                  93,034                  80,571

                    Total  operating  expenses                                          311,864                238,892

        Operating  income                                                                      202,979                141,246

        Interest  and  other  income,  net                                            10,039                  12,543

        Income  before  income  tax  expense                                      213,018                153,789

        Income  tax  expense  (A)                                                            36,213                  21,530

        Net  income                                                                                $176,805              $132,259

        Basic  net  income  per  share                                                      $0.32                    $0.24

        Diluted  net  income  per  share                                                  $0.30                    $0.22

        Shares  used  in  basic  per  share  computation  (B)          555,673                541,247

        Shares  used  in  diluted  per  share  computation  (B)      591,989                598,299

        (A)  The  effective  income  tax  rate  for  the  three  months  ended  April  27,
                2008  and  April  29,  2007  was  17%  and  14%,  respectively.
        (B)  Reflects  a  three-for-two  stock  split  on  September  10,  2007.

                                                                NVIDIA  CORPORATION
                                            (In  thousands,  except  per  share  data)

                                                                                                                  Three  Months  Ended
                                                                                                            April  27,            April  29,
                                                                                                                2008                      2007

        GAAP  gross  profit                                                                  $514,843              $380,138
              Stock-based  compensation  expense  included
                in  cost  of  revenue                                                              3,136                    2,809
        Non-GAAP  gross  profit                                                          $517,979              $382,947

        GAAP  net  income                                                                      $176,805              $132,259
              Stock-based  compensation  expense  (A)                          42,124                  37,405
              Income  tax  impact  of  non-GAAP  adjustments                (7,161)                (5,237)
        Non-GAAP  net  income                                                              $211,768              $164,427

        Diluted  net  income  per  share

              GAAP                                                                                            $0.30                    $0.22
              Non-GAAP                                                                                    $0.36                    $0.28

        Shares  used  in  GAAP  diluted  net  income  per
          share  computation  (B)                                                          591,989                598,299
              Cumulative  impact  of  non-GAAP  adjustments  (C)      (10,653)              (17,203)
        Shares  used  in  non-GAAP  diluted  net  income  per
          share  computation  (B)                                                          581,336                581,096

        (A)  Results  include  stock-based  compensation
                  expense  as  follows  (in  thousands):

                                                                                                                  Three  Months  Ended
                                                                                                            April  27,            April  29,
                                                                                                                2008                      2007

                      Cost  of  revenue                                                            $3,136                  $2,809
                      Research  and  development                                        $24,534                $22,400
                      Sales,  general  and  administrative                      $14,454                $12,196

        (B)  Reflects  a  three-for-two  stock  split  on  September  10,  2007.

        (C)  Reflects  an  adjustment  to  the  diluted  outstanding  shares  calculated
                under  SFAS  123R  to  conform  to  diluted  outstanding  shares  calculated
                under  prior  accounting  standards  (APB  25).

                                                              NVIDIA  CORPORATION
                                            CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                                                                  (In  thousands)

                                                                                                            April  27,        January  27,
                                                                                                                2008                      2008

        Current  assets:
          Cash,  cash  equivalents  and  marketable
            securities                                                                        $1,621,639          $1,809,478
          Accounts  receivable,  net                                                    651,800                666,494
          Inventories                                                                              420,126                358,521
          Prepaid  expenses  and  other  current  assets                    55,428                  54,336

              Total  current  assets                                                    2,748,993            2,888,829

        Property  and  equipment,  net                                                522,056                359,808
        Goodwill                                                                                      371,019                354,057
        Intangible  assets,  net                                                          125,001                106,926
        Deposits  and  other  assets                                                      40,389                  38,051

              Total  assets                                                                  $3,807,458          $3,747,671


        Current  liabilities:
          Accounts  payable                                                                  $427,855              $492,099
          Accrued  liabilities                                                              448,697                475,062

              Total  current  liabilities                                              876,552                967,161

        Other  long-term  liabilities                                                193,728                162,598

        Stockholders'  equity                                                          2,737,178            2,617,912

              Total  liabilities  and  stockholders'  equity      $3,807,458          $3,747,671


Web site: http://www.nvidia.com/


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