NVIDIA 2005 Annual Report Download - page 7

PART I
ITEM 1. BUSINESS
Forward−Looking Statements
When used in this Annual Report on Form 10−K (the “Report”), the words “believes,” “plans,” “estimates,” “anticipates,”
“expects,” “intends,” “allows,” “can,” “will” and similar expressions are intended to identify forward−looking statements. These
are statements that relate to future periods and include statements relating to our corporate strategies, the features, capabilities,
performance, benefits, production and availability of our products and technologies, our license with Intel Corporation, the
anticipated date of shipments of Intel Corporation−based MCP products, the importance of design wins, the importance and benefits
of certain relationships, our employees, market share, our research and development, our backlog, seasonality of our products, our
expectations regarding competition and our competitive position, development of new products, entry into new product segments,
intellectual property, intellectual property litigation, payment of dividends, sufficiency of our facilities, revenue, revenue mix, taxes,
evaluation of repatriation of foreign earnings, PCI Express, our gross margin, inventories, product life cycles, average selling prices,
our WMP business, acceptance of our technology and products, our critical accounting policies, Xbox revenue, expenses, mix of
expenses, capital expenditures, cash balances, results of operations, currency exchange rates, the impact of recent accounting
pronouncements, business acquisitions, and our reliance on a limited number of customers. Forward−looking statements are subject
to risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties
include, but are not limited to, those risks discussed below and under Item 7, “Management's Discussion and Analysis of Financial
Condition and Results of Operations−Business Risks,” as well as unanticipated decreases in average selling prices of a particular
product, our inability to decrease inventory purchase commitments in a meaningful time frame, reduction in demand for or market
acceptance of our products or our customers' products, defects in our products, the impact of competitive pricing pressure, new
product announcements or introductions by our competitors, disruptions in our relationships with Taiwan Semiconductor
Manufacturing Company, United Microelectronics Corporation, International Business Machines Corporation, Chartered
Semiconductor Manufacturing, and other key suppliers, fluctuations in general economic conditions, failure to achieve design wins,
the seasonality of the PC and our other product segments, international and political conditions, the concentration of sales of our
products to a limited number of customers, unforeseen reductions in demand for our products, our ability to safeguard our intellectual
property, delays in the development of new products, delays in volume production of our products, and developments in and expenses
related to litigation. These forward−looking statements speak only as of the date hereof. We expressly disclaim any obligation or
undertaking to release publicly any updates or revisions to any forward−looking statements contained herein to reflect any change in
our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
In the sections of this Report entitled “Business ” and “Management's Discussion and Analysis of Financial Condition and Results of
Operation” all references to “NVIDIA,” “we,” “us,” “our” or the “Company” mean NVIDIA Corporation and its subsidiaries,
except where it is made clear that the term means only the parent company.
NVIDIA, GeForce, SLI, GoForce, NVIDIA Quadro, NVIDIA nForce, TurboCache, PureVideo and the NVIDIA logo are our
trademarks or registered trademarks in the United States and other countries that are used in this document. We also refer to
trademarks of other corporations and organizations in this document.
Overview
NVIDIA Corporation is a worldwide leader in graphics and digital media processors 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, wireless media processors, or WMPs, 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 objective is to be one of the most
important and influential technology companies in the world.
Original equipment manufacturers, or OEMs, original design manufacturers, or ODMs, add−in−card manufacturers, system builders
and consumer electronics companies worldwide utilize NVIDIA digital media processors as a core component of their entertainment
and business solutions. Our award−winning GPUs deliver superior performance and crisp visual quality for PC−based applications
such as manufacturing, science, e−business, entertainment and education. Our critically−acclaimed MCPs perform highly demanding
multimedia processing for secure broadband connectivity, communications and breakthrough audio capabilities. Our WMPs deliver a
great visual experience by accelerating graphics and video applications while implementing design techniques that result in high
performance and ultra−low power consumption.
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