Press release
SANTA CLARA, Calif., Nov. 6 /PRNewswire-FirstCall/ -- NVIDIA Corporation (Nasdaq: NVDA) today reported financial results for the third quarter of fiscal 2009 ended October 26, 2008.
For the third quarter of fiscal 2009, revenue was $897.7 million compared to $1.12 billion for the third quarter of fiscal 2008, a decrease of 20 percent. For the nine months ended October 26, 2008, revenue increased to $2.94 billion compared to $2.90 billion for the nine months ended October 28, 2007, an increase of 2 percent.
During the third quarter of fiscal 2009, NVIDIA recorded an $8.3 million charge against operating expenses related to restructuring costs in connection with its workforce reduction. These pre-tax charges are comprised of severance and related expenses.
NVIDIA's results for the third quarter of fiscal 2009, computed in accordance with U.S. generally accepted accounting principles (GAAP), included net income of $61.7 million, or $0.11 per diluted share. Non-GAAP net income for the third quarter of fiscal 2009, which excludes stock-based compensation charges, a non-recurring charge against cost of revenue related to a royalty dispute, a restructuring charge against operating expenses, and the associated tax impact, was $111.4 million, or $0.20 per diluted share.
GAAP net income for the nine months ended October 26, 2008 was $117.6 million, or $0.20 per diluted share, compared to $540.7 million, or $0.89 per diluted share, for the nine months ended October 28, 2007. Non-GAAP net income for the nine months ended October 26, 2008, which excludes stock-based compensation charges, a non-recurring charge against cost of revenue related to a royalty dispute, a non-recurring warranty charge against cost of revenue, a restructuring charge against operating expenses, and the associated tax impact was $397.7 million, or $0.68 per diluted share, compared to $626.7 million, or $1.06 per diluted share, for the nine months ended October 28, 2007.
"We made good progress on multiple fronts during the quarter," said Jen-Hsun Huang, president and CEO of NVIDIA. "Improving gross margin while managing operating expenses enabled us to significantly improve our operating fundamentals. We transitioned our performance segment GPUs to 55 nanometers and are now poised to recapture lost share. We entered the fastest growing segment of the PC market with our first notebook chipset for Intel processors, and delivered on several exciting new growth initiatives -- 3-way SLI for the Intel Core i7 processor platform, Quadro CX for Adobe CS4 creative professionals and the Tesla supercomputing processor."
Third Quarter Fiscal 2009 and Recent Highlights:
-- NVIDIA introduced the GeForce 9400 and 9300 motherboard GPUs for Intel desktop PCs. The new motherboard GPUs set a new price/performance standard for integrated graphics by combining the power of three different chips into one highly compact and efficient GPU.
-- Together with Apple, NVIDIA launched the new GeForce 9400M motherboard GPU for their new lineup of Mac notebooks. The GeForce 9400M is the industry's first processor to integrate three complex chips -- the northbridge, the IO/network processor, and GeForce GPU into a single chip, and as a result, delivers up to a 5X performance increase over Intel integrated graphics in one-half the size. The MacBook and MacBook Air come standard with the 9400M. The MacBook Pro comes standard with the hybrid combination of two GeForce GPUs -- the 9400M is used for maximum battery life and a GeForce 9600M GT for high performance mode.
-- NVIDIA announced the NVIDIA Quadro CX, the industry's first accelerator for Adobe's Creative Suite 4 content creation software. Adobe CS4 software has now added optimization to take advantage of GPU technology. NVIDIA specifically designed and optimized the Quadro CX to enhance the performance of the CS4 product line and to give creative professionals the ultimate performance and productivity.
-- For design and creative professionals, NVIDIA introduced five new Quadro FX notebook GPUs that span from ultra-high performance to ultra mobility. NVIDIA also delivered the first desk side visual supercomputer with the Quadro Plex D Series. At this year's SIGGRAPH 2008, NVIDIA set a new milestone in computer graphics by demonstrating the world's first real-time fully-interactive ray tracer on the new Quadro Plex D2 system.
