How did NVIDIA's revenue and net income perform in the quarter?

NVIDIA reported a strong performance, with revenue increasing by 62.3% to $240.9 million for the three months ended April 29, 2001, compared to $148.5 million in the same period last year. Net income rose by 41.5% to $25.9 million ($0.31 per diluted share) from $18.3 million ($0.24 per diluted share) in the prior year's comparable quarter.

What is the significance of the 3dfx Interactive acquisition?

NVIDIA acquired certain assets from 3dfx Interactive, Inc., including patents and patent applications, for approximately $83.4 million. This strategic move is expected to enhance NVIDIA's intellectual property portfolio and competitive standing in the graphics processor market. Additionally, the acquisition resolved outstanding patent litigation between the two companies.

What is the geographical breakdown of NVIDIA's revenue?

The Asia Pacific region is NVIDIA's largest market, accounting for $211.6 million (approximately 87.8%) of total revenue for the quarter. The U.S. contributed $15.2 million, and Europe contributed $14.1 million. The company notes that international revenue increased by 69% year-over-year.

How are operating expenses trending, particularly R&D?

Operating expenses have increased, with Research and Development (R&D) expenses seeing a substantial rise of 75% to $31.2 million. This increase is attributed to new employees, including those from the 3dfx acquisition, and investment in next-generation products. Sales, General, and Administrative expenses also increased by 55%.

What is NVIDIA's cash position and outlook on future liquidity?

As of April 29, 2001, NVIDIA held $627.3 million in cash and cash equivalents. The company believes its current cash balance and expected operating cash flows will be sufficient to meet its needs for at least the next 12 months. However, it acknowledges the possibility of needing additional financing in the future, which may not be available on favorable terms or could be dilutive.

NVDA 10-Q Quarterly Report Q1 FY2002 — Revenue, Net Income, EPS

Summary

NVIDIA Corporation's (NVDA) 10-Q filing for the period ending April 29, 2001, reveals a company experiencing significant growth and strategic acquisitions. Revenue for the three months ended April 29, 2001, surged by 62.3% year-over-year to $240.9 million, driven by strong demand for its graphics processors and new product introductions. Net income also saw a substantial increase to $25.9 million from $18.3 million in the prior year period. A key development during the quarter was the acquisition of certain assets from 3dfx Interactive, Inc. for approximately $83.4 million, which included valuable patents and patent applications, and the cessation of ongoing patent litigation between the two companies. This acquisition is expected to bolster NVIDIA's market position. The company also highlights strong demand in the Asia Pacific region, which accounted for a significant portion of its revenue. Despite robust growth, NVIDIA anticipates a continued decline in average selling prices for its products due to market maturation and increasing competition.

Key Highlights

1Revenue grew by 62.3% to $240.9 million for the three months ended April 29, 2001, compared to $148.5 million in the prior year period.
2Net income increased by 41.5% to $25.9 million ($0.31 per diluted share) for the quarter, up from $18.3 million ($0.24 per diluted share) in the same period last year.
3The company acquired certain assets from 3dfx Interactive, Inc., including patents and patent applications, for approximately $83.4 million, strengthening its intellectual property and market position.
4Asia Pacific remains a critical revenue driver, contributing $211.6 million, or approximately 87.8%, of total revenue for the quarter.
5Research and development expenses increased significantly by 75% to $31.2 million, reflecting investments in next-generation products and integration of 3dfx personnel.
6Cash and cash equivalents decreased to $627.3 million from $674.3 million, primarily due to significant investing activities, including acquisitions and capital expenditures for new facilities.
7NVIDIA anticipates ongoing declines in average selling prices for its products due to market dynamics and increased competition.

NVIDIA CORP Quarterly Report for Q1 Ended Apr 29, 2001

Summary

Key Highlights

Frequently Asked Questions