Summary
NVIDIA Corporation's third quarter fiscal year 2010 (ending October 25, 2009) report shows a slight increase in revenue to $903.2 million, up 1% year-over-year, but a significant 20% decrease for the nine-month period to $2.34 billion compared to $2.94 billion in the prior year. This revenue performance was impacted by supply constraints on their new 40nm products. The company reported a net income of $107.6 million for the quarter, a substantial increase from $61.7 million in the prior year, leading to diluted EPS of $0.19. However, the nine-month period resulted in a net loss of $199.1 million, a reversal from a net income of $117.6 million in the prior year. Despite the mixed revenue picture and the quarterly profit, investors should note the significant increase in operating expenses, particularly in Research and Development, which rose 7.5% for the nine-month period, partly due to stock-based compensation charges related to a stock option purchase. The company also experienced a substantial warranty charge of $164.5 million related to previous generation products, although some of this was offset by insurance reimbursements. Liquidity remains strong, with $1.63 billion in cash, cash equivalents, and marketable securities, and operating activities generated $418.6 million in cash for the nine-month period. The company is also facing ongoing legal disputes, notably with Intel regarding licensing agreements, which has led to a redirection of resources in their MCP business.
Financial Highlights
48 data points| Revenue | $903.21M |
| Cost of Revenue | $511.42M |
| Gross Profit | $391.78M |
| R&D Expenses | $197.95M |
| SG&A Expenses | $85.99M |
| Operating Expenses | $283.94M |
| Operating Income | $107.84M |
| Net Income | $107.58M |
| EPS (Basic) | $0.01 |
| EPS (Diluted) | $0.00 |
| Shares Outstanding (Basic) | 22.05M |
| Shares Outstanding (Diluted) | 22.98M |
Key Highlights
- 1Revenue for Q3 FY2010 increased slightly by 1% to $903.2 million, but was down 20% to $2.34 billion for the first nine months of FY2010 compared to FY2009.
- 2Net income for Q3 FY2010 was $107.6 million, a significant increase from $61.7 million in Q3 FY2009, resulting in diluted EPS of $0.19.
- 3The company reported a net loss of $199.1 million for the first nine months of FY2010, a stark contrast to a net income of $117.6 million in the prior year's comparable period.
- 4Research and Development expenses increased by 7.5% for the nine-month period, influenced by stock-based compensation charges from a stock option purchase.
- 5A significant warranty charge of $164.5 million was recorded related to previous generation products, partially offset by insurance reimbursements.
- 6Strong liquidity position with $1.63 billion in cash, cash equivalents, and marketable securities as of October 25, 2009.
- 7The company is facing ongoing legal disputes, notably with Intel concerning a chipset licensing agreement, impacting strategic resource allocation in the MCP business.