01—Abstract
Summary
Summary of the 10-K filed March 12, 2013. Cited figures are marked; the original filing is the authoritative source.
NVIDIA Corporation's 2013 10-K filing highlights a company strategically positioned in the burgeoning visual computing market.
The company primarily focuses on its Graphics Processing Unit (GPU) technology, which powers a wide array of applications from gaming and professional design to scientific research and supercomputing. Alongside its GPU business, NVIDIA is actively expanding its Tegra processor division, targeting mobile devices, automotive infotainment, and gaming consoles. The company emphasizes its commitment to innovation through substantial R&D investments, aiming to maintain its technological leadership.
Financially, NVIDIA demonstrated revenue growth driven by its GPU segment, particularly with the introduction of its Kepler architecture. The Tegra business also saw significant growth, fueled by adoption in smartphones, tablets, and automotive systems.
The company initiated a quarterly cash dividend program during the fiscal year, signaling a commitment to returning value to shareholders, alongside an active share repurchase program. Despite facing intense competition and potential supply chain constraints, NVIDIA's strategy centers on leveraging its core visual computing expertise to drive growth across diverse and expanding markets.
02—Key points
Key Highlights
- NVIDIA operates with two primary segments: GPU business and Tegra Processor business, showcasing a diversified strategy in visual computing.
- The company launched its new Kepler GPU architecture, which improved performance, power efficiency, and drove growth in the GPU segment.
- The Tegra Processor business experienced significant revenue growth, driven by adoption in smartphones, tablets (including Nexus 7 and Windows RT devices), and automotive infotainment systems.
- NVIDIA announced Project SHIELD, an Android gaming device powered by its Tegra 4 processor, marking an expansion into dedicated gaming hardware.
- The company initiated a quarterly cash dividend program in fiscal year 2013, paying out $0.075 per share, indicating a focus on returning capital to shareholders.
- NVIDIA continues to invest heavily in Research and Development, with R&D expenses increasing by 14.4% year-over-year, underscoring its commitment to technological innovation.
- The company operates a fabless manufacturing strategy, relying on world-class suppliers for wafer fabrication, assembly, testing, and packaging.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, NVIDIA Corp kept $0.13.
- Revenue$4.28B100.0%
- Cost of revenue−$2.05B48.0%
- Gross profit$2.23B52.0%
- Operating costs−$1.58B36.9%
- Operating income$648.2M15.1%
- Interest, other & tax−$85.7M2.0%
- Net income$562.5M13.1%
Where FY2013 revenue went
$4.28B- Cost of revenue: $2.05B, 48% of revenue
- R&D: $1.15B, 27% of revenue
- Net income: $562.5M, 13% of revenue
- SG&A: $430.8M, 10% of revenue
- Interest, other & tax: $85.7M, 2.0% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed March 12, 2013Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $4.28B$4.00B | +7.1% |
| Cost of Revenue | $2.05B$1.94B | +5.8% |
| Gross Profit | $2.23B$2.06B | +8.3% |
| R&D Expenses | $1.15B$1.00B | +14.4% |
| SG&A Expenses | $430.82M$405.61M | +6.2% |
| Operating Expenses | $1.58B$1.41B | +12.1% |
| Operating Income | $648.24M$648.30M | 0.0% |
| Interest Expense | $3.29M$3.09M | +6.6% |
| Net Income | $562.54M$581.09M | −3.2% |
| EPS (Basic) | $0.02$0.02 | −5.2% |
| EPS (Diluted) | $0.02$0.02 | −4.3% |
| Shares Outstanding (Basic) | 24.77B24.15B | +2.6% |
| Shares Outstanding (Diluted) | 25.00B24.65B | +1.4% |
05—Questions
Frequently Asked Questions
What are NVIDIA's primary business segments?
NVIDIA's primary business segments are its GPU (Graphics Processing Unit) business, which encompasses products like GeForce, Quadro, and Tesla, and its Tegra Processor business, focused on system-on-a-chip solutions for mobile, automotive, and gaming devices.
What key new technologies or product architectures did NVIDIA introduce around this time?
NVIDIA launched its new Kepler GPU architecture during fiscal year 2013, which offered improved performance and power efficiency. They also announced Project SHIELD, an Android gaming device powered by their new Tegra 4 processor.
How did the company manage its financials and capital?
NVIDIA reported revenue growth, driven by both its GPU and Tegra segments. The company maintained strong liquidity with significant cash reserves and initiated a quarterly cash dividend program while continuing its share repurchase program.
What are the major risks and challenges NVIDIA faces according to this filing?
Key risks include intense competition from players like AMD and Intel, potential supply chain constraints (particularly with advanced process technologies like 28nm), the need for continuous product innovation, achieving market acceptance for new products, dependence on a few large customers, and risks associated with intellectual property protection.
06—Continue