Summary
NVIDIA Corporation (NVDA) filed an 8-K on September 12, 2006, reporting on its delayed Form 10-Q filing for the quarter ended July 30, 2006. Despite the administrative issues, the company announced record revenue for the second quarter of fiscal 2007, reaching $687.5 million, a 20% increase year-over-year, and also reported record revenue of $1.37 billion for the six months ended July 30, 2006. The filing also detailed ongoing voluntary reviews of the company's stock option practices by its Audit Committee, which have led to a preliminary conclusion of incorrect measurement dates for certain past stock option grants. This could result in additional non-cash stock-based compensation expenses. Separately, NVIDIA received a NASDAQ Staff Determination letter for non-compliance with listing requirements due to the delayed filing and will request a hearing, with shares remaining listed pending a decision.
Key Highlights
- 1NVIDIA announced record Q2 FY2007 revenue of $687.5 million, a 20% increase compared to Q2 FY2006.
- 2Six-month revenue for the period ended July 30, 2006, also hit a record $1.37 billion, up 18% year-over-year.
- 3The company is delaying its Form 10-Q filing for the quarter ended July 30, 2006.
- 4An ongoing review of stock option practices suggests incorrect measurement dates were used for past grants, potentially leading to additional non-cash stock-based compensation expenses.
- 5The company received a NASDAQ notice for non-compliance with listing rules due to the delayed filing.
- 6NVIDIA will request a hearing with the NASDAQ Listing Qualifications Panel, and its shares will remain listed pending the panel's decision.
- 7The SEC staff has also requested information regarding NVIDIA's historical stock option practices.