Summary
NVIDIA Corporation (NVDA) reported its first quarter fiscal year 2010 results, ending April 25, 2009. The company experienced a significant year-over-year revenue decline of 42%, from $1.15 billion to $664.2 million, largely attributed to the economic recession impacting demand across its key segments, particularly the GPU and Professional Solutions businesses. This revenue contraction, coupled with increased operating expenses, led to a substantial net loss of $201.3 million, compared to a net income of $176.8 million in the prior year period. Despite the challenging revenue environment, the company maintained its market leadership in the standalone desktop GPU segment and saw some increased demand in its MCP business for Intel-based platforms and Ion products. Financially, NVIDIA ended the quarter with a solid cash position, increasing its cash and cash equivalents and marketable securities to $1.34 billion. A notable event during the quarter was a cash tender offer for certain employee stock options, which resulted in a $140.2 million charge impacting profitability but aimed at reducing future dilution. The company also highlighted ongoing legal proceedings, including the Rambus patent infringement case and various product defect lawsuits, though it expressed confidence in resolving these matters without material impact.
Financial Highlights
25 data points| Revenue | $664.23M |
| Cost of Revenue | $474.54M |
| Gross Profit | $189.70M |
| R&D Expenses | $301.80M |
| SG&A Expenses | $118.86M |
| Operating Expenses | $420.66M |
| Operating Income | -$230.97M |
| Net Income | -$201.34M |
| EPS (Basic) | $-0.01 |
| EPS (Diluted) | $-0.01 |
| Shares Outstanding (Basic) | 21.69M |
| Shares Outstanding (Diluted) | 21.69M |
Key Highlights
- 1Revenue decreased significantly by 42% year-over-year to $664.2 million, driven by a weaker economic climate impacting demand.
- 2The company reported a net loss of $201.3 million for the quarter, a substantial swing from a net income of $176.8 million in the prior year.
- 3Operating expenses increased by 35% year-over-year to $420.7 million, largely due to a $140.2 million charge related to a stock option purchase program.
- 4Despite revenue decline, NVIDIA maintained market leadership in the standalone desktop GPU segment.
- 5Cash and cash equivalents and marketable securities increased to $1.34 billion, indicating a strong liquidity position.
- 6The Professional Solutions Business (PSB) experienced a 48% revenue decline due to reduced corporate spending.
- 7The company incurred a significant charge of $140.2 million due to a cash tender offer to purchase certain out-of-the-money employee stock options.