NVDA: NVIDIA Reports Record Revenue For The Second Quarter Of Fiscal Year 2007

NVIDIA Corporation (Nasdaq: NVDA) today reported its revenue for the second quarter of fiscal 2007 ended July 30, 2006.

For the second quarter of fiscal 2007, revenue increased to a record $687.5 million, compared to $574.8 million for the second quarter of fiscal 2006, an increase of 20 percent. Revenue for the six months ended July 30, 2006 was a record $1.37 billion, compared to revenue of $1.16 billion for the six months ended July 31, 2005, an increase of 18 percent.

"We are delighted to deliver another record quarter," stated Jen-Hsun Huang, president and CEO of NVIDIA. "Our growth was driven by strong performance from numerous product groups – desktop GPU, notebook GPU, MCP, professional solutions and handheld GPU. As the industry continues to shift its focus to the multimedia experience for consumers, the GPU is becoming increasingly important in a broad range of computing and consumer devices. We are excited about our growth opportunities ahead."

NVIDIA also announced today that the Audit Committee of the Board of Directors is conducting a voluntary review of the Company’s stock option practices covering the time from the Company’s initial public offering in 1999 through the current fiscal year. The Audit Committee is conducting this review with the assistance of outside legal counsel. The Company has voluntarily contacted the Securities and Exchange Commission staff to inform them about the ongoing review.

Although the review is ongoing, the Audit Committee has reached a preliminary conclusion that incorrect measurement dates were used for financial accounting purposes for stock option grants in certain prior periods. As a result, NVIDIA may record additional non-cash stock-based compensation expense related to stock option grants. Any additional non-cash stock-based compensation expense recorded will not affect the Company’s cash position or reported revenue for the recently completed quarter or any previous periods.

NVIDIA does not expect to be in a position to announce additional financial results for the second quarter until the Audit Committee has completed its review. At this time, the Company does not expect to be in a position to file its Form 10-Q for the second fiscal quarter by the September 8, 2006 filing deadline or the permitted extension to September 13, 2006.

Second Quarter Fiscal 2007 and Recent Highlights
The NVIDIA® GeForce® Go notebook GPU product line achieved record revenue for the second consecutive quarter. NVIDIA grew share in the notebook standalone GPU segment from 24 percent to 37 percent from the first quarter of calendar 2006 to the second quarter of calendar 2006, as reported in Mercury Research’s Second Quarter PC Graphics Report 2006.


The NVIDIA nForce® MCP product line achieved record revenue for its eighth consecutive quarter. NVIDIA nForce MCPs increased their share of the AMD64 segment from 42 percent to 52 percent from the first quarter of calendar 2006 to the second quarter of calendar 2006, as reported in Mercury Research’s Second Quarter Worldwide Chipset Report 2006.


NVIDIA advanced its leadership position in multi-GPU technology with the introduction of the GeForce 7950 GX2 GPU for desktop PCs, enabling two GPUs to be incorporated onto one add-in card. Combining two GeForce 7950 GX2 add-in cards into a single PC system enables Quad SLI™ technology.


NVIDIA announced PureVideo™ HD technology – a combination of hardware acceleration from an NVIDIA GPU, high definition movie player integration and HDCP feature support, to make it easy for manufacturers and consumers to build PCs that can play HD DVD or Blu-ray movies.


The NVIDIA Quadro® professional product line increased its revenue 27 percent from the second quarter fiscal 2006 and achieved record revenue.


The Professional Solutions Group introduced the NVIDIA Quadro Plex, the first dedicated Visual Computing System (VCS). NVIDIA Quadro Plex VCS represents an entirely new category of professional graphics solutions. It enables engineers and designers to experience advanced personal visualization solutions previously only accessible in large visualization centers.


The NVIDIA GoForce® handheld GPU technology demonstration earned two "Best of Show" awards at the second-annual Freescale Technology Forum Americas, held July 24-27 in Orlando, Florida. The demonstration entitled "Entertainment without Limits" was selected as the "Most Innovative Platform."