Summary
NVIDIA Corporation's (NVDA) 10-Q filing for the period ending October 27, 2001, reveals a strong upward trend in revenue and profitability. For the third quarter of fiscal year 2002, NVIDIA reported a significant 87% increase in revenue year-over-year, reaching $370.2 million. This growth was driven by robust sales of their graphics processors and successful new product introductions, particularly those commanding higher average selling prices. The company also demonstrated improved profitability, with gross profit increasing by 88% in the same period. Operating expenses, while rising due to investments in R&D and sales, general, and administrative functions, were managed effectively relative to revenue growth. Net income for the quarter rose to $44.7 million, a substantial increase from the prior year. The company highlights its strong cash position and positive cash flow from operations, indicating solid financial health to support ongoing development and expansion.
Key Highlights
- 1Revenue for the three months ended October 28, 2001, surged by 87% to $370.2 million, compared to $198.2 million in the same period last year.
- 2Gross profit increased by 88% year-over-year to $138.5 million, indicating improved pricing power and/or cost management.
- 3Net income for the quarter grew significantly to $44.7 million, or $0.26 per diluted share, up from $28.1 million, or $0.17 per diluted share, in the prior year.
- 4Research and development expenses increased by 102% to support new product development, reflecting a commitment to future innovation.
- 5The company reported $398.5 million in cash and cash equivalents as of October 28, 2001, demonstrating a strong liquidity position.
- 6NVIDIA completed the acquisition of certain assets from 3dfx Interactive, Inc., integrating key patents and intellectual property.
- 7Sales to Asia Pacific represented a significant portion of revenue (77% for the quarter), highlighting the importance of this region.