NVIDIA 2008 Annual Report Download - page 53

PSB. PSB revenue increased by 18% to $693.4 million for fiscal year 2009, compared to $588.4 million for fiscal year 2008. Our NVIDIA professional
workstation product sales increased due to an overall unit increase of approximately 15% in shipments of boards and chips as compared to fiscal year 2008, due to
strong demand and our transition from previous generations of NVIDIA Quadro professional workstation products to GeForce 8
- based and GeForce 9 - based
products. Sales of NVIDIA Quadro CX for Adobe
’ s CS4 software, which we launched in the third quarter of fiscal year 2009, also contributed towards the increase
in sales in fiscal year 2009.
MCP Business
. MCP business revenue decreased by 8% to $655.6 million for fiscal year 2009, compared to $710.4 million for fiscal year 2008. This decrease
was due to a decline of approximately 32% in sales of our AMD
- based platform products resulting from increased competition in AMD - based products, offset by
an increase of approximately 120% in sales of our Intel
- based platform products. The increase in Intel - based product sales was driven by sales of our GeForce
9400M mGPU, which we launched in October 2008 along with Apple Inc., or Apple, for their new lineup of Mac notebooks, and our new GeForce 9400 and 9300
mGPUs for Intel desktop PCs.
CPB
. CPB revenue decreased by 46% to $136.3 million for fiscal year 2009, compared to $251.1 million for fiscal year 2008. The decline in CPB revenue is
primarily driven by a combination of a decrease in revenue from our cell phone products and a decrease in revenue from Sony Computer Entertainment, or SCE.
The decrease in revenue from our cell phone products resulted from our shift from marketing and developing legacy products to achieving design wins and
marketing our newer Tegra products. The decrease in our revenue from SCE resulted from a decline in license revenue and a decline in royalty revenue that was
caused by a lower number of units shipped as well as by a step
- down in the per unit royalty rate during the year due to achievement of a unit - based milestone in
our agreement with SCE.
Fiscal Year 2008 vs. Fiscal Year 2007
Revenue was $4.10 billion for fiscal year 2008, compared to $3.07 billion for fiscal year 2007, which represents an increase of 34%. A discussion of our
revenue results for each of our operating segments is as follows:
GPU Business. GPU business revenue increased by 47% to $2.52 billion in fiscal year 2008, compared to $1.71 billion in fiscal year 2007. This improvement
was primarily due to increased sales of our desktop GPU products and notebook GPU products. Sales of our desktop GPU products increased by approximately
38% compared to fiscal year 2007, primarily due to growth of the Standalone Desktop market as reported in the December 2007 PC Graphics Report from Mercury
Research. Our leadership position in the Standalone Desktop market was driven by our GeForce 8
- based products. Sales of our notebook GPU products
increased by approximately 114% compared to fiscal year 2007. Notebook GPU revenue growth was primarily due to share gains in the Standalone Notebook
category as reported in the December 2007 PC Graphics Report from Mercury Research. Our share gains in the Standalone Notebook category were primarily a
result of shipments of products used in notebook PC design wins related to Intel
’ s Santa Rosa platform used in notebooks.
PSB. PSB revenue increased by 29% to $588.4 million in fiscal year 2008, compared to $454.7 million in fiscal year 2007. Our professional workstation
product sales increased due to an overall increase in shipments of boards and chips. This increase in shipments was primarily driven by our transition from
previous generations of NVIDIA Quadro professional workstation products to GeForce 8
- based products.
MCP Business. MCP business revenue increased by 7% to $710.4 million in fiscal year 2008, compared to $661.5 million in fiscal year 2007. The increase
resulted from an approximate 225% increase in sales of our Intel
- based platform products as compared to fiscal year 2007. We began ramping up shipments of our
Intel
- based platform products after the third quarter of fiscal year 2007. This increase was offset by a decline in sales of our AMD - based platform products and
sales of products related to our acquisition of ULi Electronics, Inc. in February 2006.
CPB. CPB revenue increased by 8% to $251.1 million in fiscal year 2008, compared to $233.2 million in fiscal year 2007. The overall increase in CPB revenue
is primarily due to increased royalties from Sony Computer Entertainment, or SCE, but was offset by decreases in revenue from our cell phone products and our
contractual development arrangements with SCE.
Concentration of Revenue
We generated 87%, 89% and 86% of our total revenue for fiscal years 2009, 2008 and 2007, respectively, from sales to customers outside the United States
and other Americas. Revenue by geographic region is allocated to individual countries based on the location to which the products are initially billed even if the
foreign contract equipment manufacturers, or CEMs
’ , add - in board and motherboard manufacturers ’ revenue is attributable to end customers in a different
location.
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