NVIDIA 2011 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2011 NVIDIA annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Available Information
Our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and, if applicable, amendments to those reports filed
or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934, or the Exchange Act, are available free of charge on or through our web site,
http://www.nvidia.com, as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange
Commission, or the SEC. Our web site and the information on it or connected to it is not a part of this Form 10-K.
ITEM 1A. RISK FACTORS
In evaluating NVIDIA and our business, the following factors should be considered in addition to the other information in this Annual Report on
Form 10-K. Before you buy our common stock, you should know that making such an investment involves some risks including, but not limited to, the risks
described below. Additionally, any one of the following risks could seriously harm our business, financial condition and results of operations, which could
cause our stock price to decline. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also impair our
business operations.
Risks Related to Our Business, Industry and Partners
Our business results could be adversely affected if the identification and development of new products is delayed or unsuccessful.
In order to maintain or improve our financial results, we will need to continue to identify and develop new products and enhancements to our existing
products in a timely and cost-effective manner. The process of developing new products and services and enhancing existing products and services is highly
complex, costly and uncertain, and any failure by us to anticipate customers’ changing needs and emerging technology trends could significantly harm our
market. We must make long-term investments and commit significant resources before knowing whether our predictions will accurately reflect customer
demand for our new products and technologies. It is possible that our development efforts will not be successful and that our new technologies will not result
in meaningful revenues. Even if we introduce new and enhanced products to the market, we may not be able to achieve market acceptance of them in a
timely manner.
Our ability to successfully develop and deliver new products will depend on various factors, including our ability to:
• Effectively identify and capitalize upon opportunities in new markets;
• Timely complete and introduce new products and technologies;
• Transition our semiconductor products to increasingly smaller line width geometries; and
• Obtain sufficient foundry capacity and packaging materials.
We occasionally have experienced delays in completing the development and introduction of new products and product enhancements, and we could
experience delays in the future. In addition, in the past, we have been unable to successfully manage product transitions from older to newer products resulting
in obsolete inventory. Our failure to successfully develop and introduce new products and technologies or identify new uses for existing or future products,
could result in rapidly declining average selling prices, reduced demand for our products or loss of market share any of which could harm our competitive
position and cause our revenue, gross margin and overall financial results to suffer.
If we are unable to achieve market acceptance and design wins for our products and technologies, our results of operations and competitive
position will be harmed.
The success of our business depends to a significant extent on our ability to achieve market acceptance of our new products and enhancements to our
existing products and identify and enter new markets. The market for our product and technologies has been characterized by unpredictable and sometimes
rapid shifts in the popularity of products, often caused by the publication of competitive industry benchmark results, changes in pricing of dynamic random-
access memory devices and other changes in the total system cost of add-in boards, as well as by severe price competition and by frequent new technology
and product introductions. Broad market acceptance is difficult to achieve and such market acceptance, if achieved, is difficult to sustain due to intense
competition and frequent new technology and product introductions. If we do not successfully achieve or maintain market acceptance for our products and
enhancements or identify and enter new markets, our ability to compete and maintain or increase revenues will suffer.
11