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NVIDIA CORP Quarterly Report for Q3 Ended Oct 26, 2003

Filing Date
Filed November 21, 2003
Period End
October 26, 2003
Security
NVDA
In the record · 2016–202610-K1110-Q328-K110

NVDA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jun ’17Jun ’17
  2. Leadership change8-K · Jun ’19Jun ’19
  3. Material agreement8-K · Jun ’21Jun ’21
  4. Leadership change8-K · Aug ’25Aug ’25

01—Abstract

Summary

Summary of the 10-Q filed November 21, 2003. Cited figures are marked; the original filing is the authoritative source.

NVIDIA Corporation reported a solid increase in revenue for the third quarter of fiscal year 2004, reaching $486.1 milliona, a 12.9% increase from the same period in the prior year.

This top-line growth was accompanied by a significant turnaround from a net loss in the prior year's comparable quarter to a net income of $6.4 millionb. The company has successfully managed its expenses, particularly demonstrating control over operating expenses which decreased year-over-year despite revenue growth. Key financial shifts include a substantial decrease in cash and marketable securities, likely due to strategic investments and operations, alongside a significant increase in inventories and accounts payable, suggesting increased production and sales activity.

Investors should note the company's strategic financial maneuvers, including the redemption of its long-term convertible debenture and a substantial investment in property and equipment, alongside acquisitions. The reported results also reflect a positive adjustment in the company's effective income tax rate, contributing to improved profitability. While the diluted earnings per share remain modest at $0.04c, the return to profitability and revenue growth indicate a positive trajectory for NVIDIA.

02—Key points

Key Highlights

  1. Revenue increased by 12.9% to $486.1 million for the third quarter ended October 26, 2003, compared to $430.3 million in the prior year.
  2. The company reported a net income of $6.4 million for the quarter, a significant improvement from a net loss of $48.6 million in the same period last year.
  3. Operating expenses decreased by approximately 22% to $118.8 million, driven by lower stock option exchange costs and controlled R&D and SG&A spending relative to revenue.
  4. Total assets decreased from $1.617 billion to $1.459 billion, primarily due to a reduction in cash and marketable securities.
  5. Total liabilities increased, with a notable rise in accounts payable, while long-term convertible debentures were fully redeemed.
  6. Inventories saw a significant increase, rising from $145.0 million to $260.8 million, indicating increased production or anticipation of future sales.
  7. NVIDIA repurchased its outstanding convertible debenture for $300 million, impacting cash flow from financing activities.

03—Questions

Frequently Asked Questions

  1. What is the main driver of NVIDIA's revenue growth in this quarter?

    NVIDIA experienced revenue growth driven by an increase in its sales, with revenue reaching $486.1 million for the quarter ended October 26, 2003, up from $430.3 million in the prior year's comparable period. Specific product drivers are not detailed in this excerpt, but the overall market demand for NVIDIA's graphics processing units appears to be strong.

  2. Why did NVIDIA redeem its convertible debenture?

    NVIDIA redeemed its $300 million long-term convertible debenture during the quarter ended October 26, 2003. This action likely aimed to reduce future interest expenses, simplify the company's capital structure, and eliminate potential dilution associated with the debenture's conversion feature. The debenture was redeemed for $300,000,000.

  3. What is the significance of the increase in inventories?

    The substantial increase in inventories, from $145.0 million to $260.8 million, suggests that NVIDIA is building up stock. This could be in anticipation of increased demand for its products, a strategic move to ensure supply chain readiness for upcoming product launches, or potentially due to longer production cycles or slower sales than anticipated for certain product lines.

  4. How has NVIDIA's profitability changed compared to the previous year?

    NVIDIA has seen a significant improvement in profitability. For the third quarter of fiscal year 2004, the company reported a net income of $6.4 million, a dramatic turnaround from the net loss of $48.6 million recorded in the same period of fiscal year 2003. This improvement is attributed to revenue growth and better control over operating expenses, including the absence of significant stock option exchange expenses that impacted the prior year.

04—Continue

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