01—Abstract
Summary
Summary of the 10-K filed March 21, 2008. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation's 2008 10-K filing highlights its strong leadership in visual computing, driven by its Graphics Processing Unit (GPU) business.
The company reported significant revenue growth, demonstrating increasing market share in both desktop and notebook GPU categories. Strategic acquisitions and product innovations, including advancements in professional visualization, high-performance computing (Tesla), and mobile processors (APX), underscore NVIDIA's commitment to expanding its technological reach. The company is navigating a dynamic and competitive landscape, with a strong emphasis on research and development to maintain its technological edge.
NVIDIA's financial performance shows robust growth in revenue and gross profit, reflecting the increasing demand for its core products. However, the company also acknowledges inherent risks related to competition, supply chain dependencies, and ongoing legal matters, including antitrust investigations and stock option-related litigation.
02—Key points
Key Highlights
- NVIDIA holds a leading market share in the standalone desktop GPU category, increasing from 52% to 64% in fiscal year 2008, driven by its GeForce 8-series GPUs.
- The company experienced significant design-win success in the notebook GPU market, growing its standalone notebook category share from 58% to 75% for fiscal year 2008.
- NVIDIA expanded its offerings into high-performance computing with the introduction of the NVIDIA Tesla product family.
- Acquisitions of Ageia Technologies (gaming physics), Mental Images (photorealistic rendering), and ULi Electronics (MCP) in prior periods are integrated to enhance product capabilities and market reach.
- The company's revenue grew by 34% in fiscal year 2008, reaching $4.10 billion, with a notable 47% increase in the GPU Business segment.
- Gross margin improved to 45.6% in fiscal year 2008 from 42.4% in fiscal year 2007, attributed to a favorable product mix and the introduction of higher-margin GeForce 8-series GPUs.
- NVIDIA is actively managing its cash reserves, holding $1.81 billion in cash, cash equivalents, and marketable securities as of January 27, 2008, and continues to execute a significant stock repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2008, NVIDIA Corp kept $0.19.
- Revenue$4.10B100.0%
- Cost of revenue−$2.23B54.4%
- Gross profit$1.87B45.6%
- Operating costs−$1.03B25.2%
- Operating income$836.3M20.4%
- Interest, other & tax−$38.7M0.9%
- Net income$797.6M19.5%
Where FY2008 revenue went
$4.10B- Cost of revenue: $2.23B, 54% of revenue
- Net income: $797.6M, 19% of revenue
- R&D: $691.6M, 17% of revenue
- SG&A: $341.3M, 8.3% of revenue
- Interest, other & tax: $38.7M, 0.9% of revenue
Kept 19% as net incomeInterest, other & tax $38.7M · 0.9%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2008filed March 21, 2008Financial Statements
| Revenue | $4.10B |
| Cost of Revenue | $2.23B |
| Gross Profit | $1.87B |
| R&D Expenses | $691.64M |
| SG&A Expenses | $341.30M |
| Operating Expenses | $1.03B |
| Operating Income | $836.35M |
| Interest Expense | $54K |
| Net Income | $797.64M |
| EPS (Basic) | $0.04 |
| EPS (Diluted) | $0.03 |
| Shares Outstanding (Basic) | 22.00M |
| Shares Outstanding (Diluted) | 24.27M |
05—Questions
Frequently Asked Questions
What are NVIDIA's primary business segments as of the March 2008 filing?
NVIDIA's primary business segments are the GPU Business (GeForce products for PCs), Professional Solutions Business (PSB - Quadro and Tesla products), Media and Communications Processor (MCP) Business (nForce core logic and mGPU products), and Consumer Products Business (CPB - GoForce and APX mobile products).
What are the key risks and challenges NVIDIA faces according to this filing?
Key risks include intense competition from established players like Intel and AMD, rapid technological changes, dependence on third-party foundries and assembly partners, potential supply chain disruptions, the need for successful new product introductions, managing inventory, and ongoing litigation including DOJ investigations and stock option-related legal matters.
How did NVIDIA's revenue perform in fiscal year 2008 compared to the previous year?
NVIDIA reported significant revenue growth, with total revenue increasing by 34% to $4.10 billion in fiscal year 2008, compared to $3.07 billion in fiscal year 2007. The GPU Business segment saw a particularly strong increase of 47%.
What is NVIDIA's strategy regarding research and development?
NVIDIA's strategy is to continuously introduce new and enhanced products, focusing on concurrent development of multiple GPU generations and other products using independent design teams. They are investing heavily in R&D, with expenses increasing significantly year-over-year, to maintain technology leadership in 3D graphics, HD video, and other computing areas.
06—Continue