NVIDIA 2009 Annual Report Download - page 62

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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Source: NVIDIA CORP, 10-K, March 13, 2009 Powered by Morningstar® Document Research℠