NVIDIA CORP Quarterly Report for Q3 Ended Oct 30, 2011

Summary

NVIDIA Corporation reported strong financial results for the third quarter and the first nine months of fiscal year 2012, ending October 30, 2011. Revenue saw a significant increase of 26.3% year-over-year in the third quarter, reaching $1.07 billion, driven by robust performance in the GPU and Consumer Products Business (CPB) segments. For the nine-month period, revenue grew 14.6% to $3.04 billion. Net income for the third quarter more than doubled to $178.3 million, or $0.29 per diluted share, compared to $84.9 million, or $0.15 per diluted share, in the prior year. The company's strategic investments in visual, high-performance, and mobile computing are showing positive results, particularly with the strong growth in the Tegra-based CPB segment. The company also benefited from a significant license revenue from its agreement with Intel. NVIDIA's financial health remains strong with substantial cash reserves and a positive cash flow from operations.

Key Highlights

• 1Revenue increased by 26.3% to $1.07 billion in Q3 FY2012 compared to Q3 FY2011.
• 2Net income more than doubled to $178.3 million in Q3 FY2012, with diluted EPS of $0.29.
• 3Significant growth in the Consumer Products Business (CPB) segment, primarily driven by Tegra products.
• 4Inclusion of $66.0 million in license revenue from the Intel agreement contributed to the GPU business's performance.
• 5Strong gross margin improvement to 52.2% in Q3 FY2012, up from 46.5% in Q3 FY2011, aided by the Intel license and product mix.
• 6Acquisition of Icera, Inc. completed for $352.2 million to strengthen mobile computing capabilities.
• 7Operating cash flow was robust at $498.6 million for the first nine months of FY2012.

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