NVIDIA 2006 Annual Report Download - page 7

PART I
ITEM 1. BUSINESS
Forward−Looking Statements
When used in this Annual Report on Form 10−K, 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 including, but not limited to, our corporate strategy, our anticipated
growth and areas of growth, our fastest growing businesses, factors contributing to growth, international expansion, the features,
benefits, capabilities, performance, production and availability of our technology and products, focus on development of cost effective
architectures, development of new products, demand for graphics processors in new product areas, product life cycles, average
selling prices, the importance of design wins, employees, ability to attract and retain qualified personnel, market share, research and
development, backlog, seasonality, gross margin, revenue, sources of revenue and revenue mix, expenditures and expenditure mix,
including capital expenditures, areas of increased expenditures, cash flow and cash balances, liquidity, uses of cash, investments of
our cash and marketable securities, tax rates, quarterly and annual results of operations, foreign currency risk strategy, critical
accounting policies, the impact of recent accounting pronouncements, inventories, our relationship with and the development of a
graphics processing unit, or GPU, for Sony Computer Entertainment and the royalties to that GPU, HD and Blu−ray video, use of
our products by Apple Computer, Inc., Windows Vista, the importance and benefits of strategic relationships, customer demand, our
reliance on a limited number of customers, platform innovations and solutions, stock option grants and our employee stock purchase
plan, expensing of stock based compensation, our stock repurchase program, our competitors, expectations regarding competition,
our competitive position, factors affecting competition, payment of dividends, sufficiency of our facilities, our intellectual property and
intellectual property strategy, litigation and settlement of litigation, internal control over financial reporting, and compliance with
environmental laws and regulations. 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, delays in the
development or release of new products, delays in volume production of our products, loss of market share for our GPU Business,
changes in customer demands, slower than anticipated adoption of new technology, slower than anticipated growth of new markets,
delays in the release of Windows Vista, changes to Windows Vista before its commercial release, our inability to compete in new
markets, the write−down or write−off of inventory, reduction in demand for or market acceptance of our products or technologies,
manufacturing defects, software bugs, competitive pricing pressure, release of new products by our competitors, disruptions in our
strategic relationships such as with our key suppliers, insufficient manufacturing availability, reliance on third parties to manufacture
and test our products, fluctuations in general economic conditions, international and political conditions, the loss of an important
customer, our ability to safeguard our intellectual property, developments in and expenses related to litigation, developments in
litigation settlements and the matters set forth in this Annual Report on Form 10−K. 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 “Item 1. Business”, “Item 1A. Risk Factors”, “Item 5. Market for Registrant's Common
Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities”, “Item 6. Selected Financial Data”, and “Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations” 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 may also refer to
trademarks of other corporations and organizations in this document.
1