NVIDIA Reports Record Revenue and Profit; Fourth Quarter Revenue
Grows 178 Percent
SANTA CLARA, Calif.--(BUSINESS WIRE)--Feb. 23, 1999--NVIDIA(tm) Corporation (Nasdaq: NVDA)
today reported record revenue and profit for its fourth quarter of fiscal 1999 and for the fiscal year ended
January 31, 1999.
Revenue for the fiscal fourth quarter ended January 31, 1999 was $65.5 million, an increase of 178 percent
compared to revenue of $23.5 million for the fourth quarter ended December 31, 1997. Net income for the
fiscal fourth quarter was $7.7 million, compared to $1.4 million for the fourth quarter of 1997. Diluted net
income per share for the fiscal fourth quarter ended January 31, 1999 was $0.27, compared to $0.06 for
the fourth quarter ended December 31, 1997.
Revenue for the fiscal year ended January 31, 1999 was $158.2 million, an increase of 444 percent
compared to revenue of $29.1 million for the year ended December 31, 1997. Net income for the year
ended January 31, 1999 was $4.1 million, compared to a net loss of $(3.6) million for the previous fiscal
year. Diluted net income per share for the fiscal year ended January 31, 1999 was $0.15, compared to a
diluted net loss per share of $(0.28) for the year ended December 31, 1997.
Financial comparisons reflect that effective February 1, 1998, the Company changed its fiscal year end to
a 52- or 53-week year ending on the last Sunday in January. The Company elected not to restate its
previous reporting periods ending December 31.
"NVIDIA's strong financial results reflect the dedication of our employees and our successful strategy to
gain market share by consistently delivering award-winning 3D technology to the world's top PC OEMs.
Graphics is a key differentiator in PCs today, as evidenced by our customers' success in winning over 200
industry awards," commented Jen-Hsun Huang, president and CEO of NVIDIA.
"NVIDIA enters fiscal year 2000 with strong momentum and a pipeline of exciting new products. Our
intense focus on technology leadership and the investments we made last year in our infrastructure have
strengthened our Company. We believe we are well positioned for continued growth this coming year and
are excited about the opportunities ahead."
In January 1999 NVIDIA completed an initial public offering of 3.5 million shares, raising $39 million for
general corporate purposes including working capital. In February 1999 the Company received an
additional $5.9 million when its underwriters in the initial public offering exercised an option to sell an
additional 525,000 shares. At January 31, 1999 the Company had cash and short-term investments of
$50.3 million and total assets of $113.3 million. Total debt of $8.4 million consisted of a $5.0 million line of
credit and $3.4 million in short and long-term capital lease obligations.
About NVIDIA
NVIDIA Corporation (Nasdaq:NVDA) designs, markets and sells a complete family of award-winning 3D
processors that deliver industry-leading performance and visual quality for a broad range of PC
applications, including: enterprise visualization, e-commerce, e-business, entertainment and education.
Corporate headquarters are located in California: 3535 Monroe Street, Santa Clara, California 95051. For
more information visit the Company's web site at nvidia.com.
Except for the historical information contained herein, this press release contains forward-looking
statements that involve risks and uncertainties and actual results may differ materially. Factors that may
effect NVIDIA's actual results include the impact of competitive products and pricing, technological
changes in products and components, the ability to timely and successfully develop and produce in
volume new products and modifications to existing products, market acceptance of new products and
modifications to existing products and conditions in the PC market. Further information on factors that
could affect the financial results of NVIDIA is included in the Registration Statement on Form S-1, dated
January 22, 1999, filed with the Securities and Exchange Commission.
Notes to Editors: Please note that the recommended way of writing NVIDIA, RIVA 128, RIVA 128ZX, RIVA
TNT and NVIDIA VANTA is all CAPITALS.
NVIDIA, the NVIDIA logo, RIVA TNT and NVIDIA VANTA are trademarks of NVIDIA Corp. RIVA, RIVA 128
and RIVA 128 ZX are trademarks of NVIDIA Corp. and ST Microelectronics. Other company and product
names may be trademarks of the respective companies with which they are associated.
A full-text copy of this announcement may be obtained by calling the company's fax retrieval line at
800-925-4305. The announcement may also be downloaded from NVIDIA's web site at
nvidia.com.
NVIDIA CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Quarter Ended Year Ended
Jan. 31, Dec. 31, Jan. 31, Dec. 31,
1999 1997 1999 1997
(unaudited)
Revenue $ 65,537 $ 23,534 $ 158,237 $ 29,071
Cost of revenue 42,346 16,338 109,746 21,244
--------- --------- --------- ---------
Gross profit 23,191 7,196 48,491 7,827
Operating expenses:
Research and development 8,417 3,585 25,073 7,103
Sales, general and
administrative 6,358 2,159 18,902 4,183
--------- --------- --------- ---------
Total operating expenses 14,775 5,744 43,975 11,286
--------- --------- --------- ---------
Operating income (loss) 8,416 1,452 4,516 (3,459)
Interest and other income
(expense), net (89) (28) (29) (130)
Income (loss) before
tax expense 8,327 1,424 4,487 (3,589)
Income tax expense 665 0 357 0
Net income (loss) $ 7,662 $ 1,424 $ 4,130 $ (3,589)
Basic net income
(loss) per share $ 0.48 $ 0.10 $ 0.28 $ (0.28)
Diluted net income
(loss) per share $ 0.27 $ 0.06 $ 0.15 $ (0.28)
Shares used in basic
per share computation 15,805 14,074 14,565 12,677
Shares used in diluted
per share computation 28,842 24,942 27,393 12,677
NVIDIA CORPORATION
CONDENSED BALANCE SHEETS
(In thousands)
Jan. 31, Dec. 31,
1999 1997
Assets
Current assets:
Cash and cash equivalents $ 50,257 $ 6,551
Accounts receivable, net 20,633 12,487
Inventory 28,623 25
Prepaid expenses and
other current assets 1,599 278
Total current assets 101,112 19,341
Property and equipment, net 11,650 5,536
Deposits and other assets 570 162
Total assets $ 113,332 $ 25,039
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 35,730 $ 11,572
Line of credit 5,000 0
Accrued liabilities 5,012 3,245
Current portion of
capital lease obligations 1,386 1,434
Total current liabilities 47,128 16,251
Capital lease obligations,
less current portion 1,995 1,891
Stockholders' equity 64,209 6,897
Total liabilities and
stockholders' equity $ 113,332 $ 25,039
CONTACT: NVIDIA Corporation
Christine Hoberg, 408/615-2589 (Chief Financial Officer)
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