NVIDIA 2009 Annual Report Download - page 48

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with “Item
1A. Risk Factors”, “Item 6. Selected Financial Data”, our Consolidated Financial Statements and related Notes thereto, as well as
other cautionary statements and risks described elsewhere in this Annual Report on Form 10-K, before deciding to purchase, hold or
sell shares of our common stock.
Overview
Our Company
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or
the GPU, a high-performance processor which generates realistic, interactive graphics on workstations, personal computers, game
consoles, and mobile devices. Our products are designed to generate realistic, interactive graphics on consumer and professional
computing devices. We serve the entertainment and consumer market with our GeForce graphics products, the professional design and
visualization market with our Quadro graphics products, the high-performance computing market with our Tesla computing solutions
products, and the handheld computing market with our Tegra computer-on-a-chip products. We have four major product-line
operating segments: the GPU business, the professional solutions business, or PSB, the media and communications processor, or
MCP, business, and the consumer products business, or CPB.
Our GPU business is comprised primarily of our GeForce products that support desktop and notebook personal computers, or PCs,
plus memory products. Our PSB is comprised of our NVIDIA Quadro professional workstation products and other professional
graphics products, including our NVIDIA Tesla high-performance computing products. Our MCP business is comprised of NVIDIA
nForce core logic and motherboard GPU, or mGPU products. Our CPB is comprised of our Tegra and GoForce mobile brands and
products that support netbooks, personal navigation devices, or PNDs, handheld personal media players, or PMPs, personal digital
assistants, or PDAs, cellular phones and other handheld devices. CPB also includes license, royalty, other revenue and associated costs
related to video game consoles and other digital consumer electronics devices. Original equipment manufacturers, original design
manufacturers, add-in-card manufacturers, system builders and consumer electronics companies worldwide utilize our processors as a
core component of their entertainment, business and professional solutions.
We were incorporated in California in April 1993 and reincorporated in Delaware in April 1998. Our headquarter facilities are in
Santa Clara, California. Our Internet address is www.nvidia.com. The contents of our website are not a part of this Form 10-K.
Recent Developments, Future Objectives and Challenges
GPU Business
Our GPU business is comprised primarily of our GeForce products that support desktop and notebook PCs, plus memory products.
During fiscal year 2009, we launched several new GPUs in the GeForce family, including the GeForce 9600 GT, the GeForce 9800
GX2, and the GeForce 9800 GTX. We also launched the GeForce GTX 280 and 260 GPU products, which represent the second
generation of our unified architecture and, based on a variety of benchmarks and resolutions, deliver approximately 50 percent more
gaming performance than our GeForce 8800 Ultra GPU. We also launched the GeForce GTX 295 and GeForce GTX 285 which were
designed based on Compute Unified Device Architecture, or CUDA, technology. The GeForce GTX 295 is among the world’s fastest
dual GPU solutions featuring the power of two GeForce GTX 200 GPUs on a single card. The GeForce GTX 285 is among the
world’s most powerful single GPU solution and works efficiently in complex DirectX 10 environments with extreme HD resolutions.
We also shipped notebook products from the GeForce 100M Series, which includes the GeForce G105M and the GeForce G110M to
meet the performance demands of today’s visual computing applications. The GeForce G105M is over 55 percent faster than our
previous product in its segment, while the GeForce G110M is 35 percent faster than our previous mainstream GPU.
In fiscal year 2009, we completed our acquisition of Ageia Technologies, Inc., or Ageia, an industry leader in gaming physics
technology. We believe that the combination of the GPU and physics engine brands results in an enhanced visual experience for the
gaming world. Subsequent to our acquisition of Ageia, we launched the GeForce 9800 GTX+, GeForce 9800 GT, and GeForce 9500
GT GPUs, which provide support for our PhysX physics engine and CUDA parallel processing across a wide range of price segments.
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Source: NVIDIA CORP, 10-K, March 13, 2009 Powered by Morningstar® Document Research℠