Summary
NVIDIA Corporation's 2009 10-K filing reveals a challenging year marked by a significant revenue decline of 16% to $3.42 billion, driven primarily by a 29% decrease in desktop GPU sales due to market shifts towards notebooks and the broader economic recession. Despite this revenue drop, the company focused on strategic product development, introducing new GeForce and Quadro graphics cards, and expanding its high-performance computing offerings with Tesla products and CUDA technology. The acquisition of Ageia Technologies also bolstered its gaming physics capabilities. However, the company faced substantial headwinds, including a large $196 million warranty charge related to a product defect in older notebook GPUs and MCPs, increased research and development expenses, and ongoing litigation. The company's financial performance was notably impacted by the economic downturn, leading to a net loss of $30 million for the fiscal year, a stark contrast to the profit in the previous year. NVIDIA's strategy centered on maintaining technology leadership, expanding into new markets like high-performance computing, and adapting to evolving consumer preferences, particularly the growing importance of mobile devices with its Tegra processors. Despite the financial pressures and product quality issues, NVIDIA continued to invest heavily in R&D, emphasizing its commitment to innovation in visual computing.
Financial Highlights
50 data points| Revenue | $3.42B |
| Cost of Revenue | $2.25B |
| Gross Profit | $1.17B |
| R&D Expenses | $855.88M |
| SG&A Expenses | $362.22M |
| Operating Expenses | $1.24B |
| Operating Income | -$70.70M |
| Interest Expense | $406K |
| Net Income | -$30.04M |
| EPS (Basic) | $-0.00 |
| EPS (Diluted) | $-0.00 |
| Shares Outstanding (Basic) | 21.93M |
| Shares Outstanding (Diluted) | 21.93M |
Key Highlights
- 1Revenue decreased by 16% to $3.42 billion in fiscal year 2009, largely due to a 29% decline in desktop GPU sales.
- 2The company incurred a significant $196 million warranty charge related to a product defect in certain previous-generation MCP and GPU products used in notebook systems.
- 3Despite revenue challenges, NVIDIA launched new products across its GeForce, Quadro, and Tesla lines, highlighting advancements in unified architecture, CUDA technology, and high-performance computing.
- 4Acquisition of Ageia Technologies strengthened NVIDIA's position in gaming physics with its PhysX software.
- 5Research and Development expenses increased by 24% to $855.9 million, reflecting continued investment in future technologies.
- 6The company experienced a net loss of $30 million in fiscal year 2009, compared to a net income of $797.6 million in the prior year, impacted by the revenue decline and the warranty charge.
- 7NVIDIA is strategically expanding into the high-performance computing market with its Tesla GPU computing products and CUDA parallel processing architecture.