NVIDIA 2004 Annual Report Download - page 13

(in thousands, except per share data)
Consolidated Statement of Income Data:
Revenue $ 1,822,945 $ 1,909,447 $ 1,369,471 $ 735,264 $ 374,505
Gross profit $ 528,878 $ 576,012 $ 519,238 $ 272,879 $ 141,843
Income from operations $ 90,157 $ 143,986 $ 241,732 $ 128,135 $ 58,617
Income before income tax expense $ 86,673 $ 150,557 $ 252,749 $ 144,808 $ 60,371
Income tax expense $ 12,254 $ 59,758 $ 75,825 $ 46,339 $ 19,412
Net income $ 74,419 $ 90,799 $ 176,924 $ 98,469 $ 40,959
Basic net income per share $ 0.46 $ 0.59 $ 1.24 $ 0.75 $ 0.34
Diluted net income per share $ 0.43 $ 0.54 $ 1.03 $ 0.62 $ 0.28
Shares used in basic per share computation 160,924 153,513 143,015 130,998 119,488
Shares used in diluted per share computation 172,707 168,393 171,074 159,294 144,392
January 25, January 26, January 27, January 28, January 30,
2004 2003 2002 2001 2000
(in thousands)
Consolidated Balance Sheet Data:
Cash, cash equivalents and marketable securities $ 604,043 $ 1,028,413 $ 791,377 $ 674,275 $ 61,560
Total assets $ 1,399,344 $ 1,617,015 $ 1,503,174 $ 1,016,902 $ 203,085
Capital lease obligations, less current portion $ 856 $ 4,880 $ 5,861 $ 378 $ 962
Deferred revenue −− −− $ 70,193 $ 200,000 −−
Deferred income tax liability $ 8,609 −− −− −− −−
Long−term debt −− $ 300,000 $ 300,000 $ 300,000 $ 500
Long−term liabilities $ 4,582 −− −− −− −−
Total stockholders’ equity $ 1,051,185 $ 932,687 $ 763,819 $ 407,107 $ 127,424
Cash dividends declared per common share −− −− −− −− −−
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(A) Fiscal 2004 included a charge of $3,500 related to the write−off of acquired research and development expense from the purchase
of MediaQ, Inc. that had not yet reached technological feasibility and has no alternative future use.
(B) Fiscal 2004 included a charge of $13,068 in connection with our convertible subordinated debenture redemption.
(C) Fiscal 2003 included $40,365 in additional revenue related to our settlement of our arbitration with Microsoft regarding Xbox
pricing.
(D) Fiscal 2003 included a charge for stock option exchange expenses of $61,832 related to personnel associated with cost of revenue
(for manufacturing personnel), research and development, and sales, general and administrative of $6,164, $35,417 and $20,251,
respectively.
(E) Fiscal 2002 included $10,030 of acquisition charges attributable to expenses related to our acquisition of assets from 3dfx.
(F) Fiscal 2002 included a charge of $3,687 related to our relocation from our previous headquarters.
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis should be read in conjunction with our consolidated financial statements and notes thereto
included elsewhere in this Annual Report.
Overview
Our Company
NVIDIA Corporation is a market leader in digital media processor technology, dedicated to creating products that enhance the
interactive experience on consumer and professional computing platforms. We design, develop and market graphics processing units,
or GPUs, media and communications processors, or MCPs, ultra−low power media processors, or UMPs, and related software. Our
products are integral to a wide variety of visual computing platforms, including enterprise personal computers, or PCs, consumer PCs,
professional workstations, notebook PCs, personal digital assistants, cellular phones, game consoles and digital media centers. We
were incorporated in California in April 1993 and reincorporated in Delaware in April 1998. Our mission is to be the most important