NVIDIA 2012 Annual Report Download - page 6

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Table of Contents
Reporting Segments
We have three primary financial reporting segments - GPU Business; Professional Solutions Business, or PSB; and Consumer Products Business, or
CPB.
Reporting Segments Primary Revenue Sources
GPU GeForce discrete graphics and chipset products and notebook PCs
Licensing fees from Intel Corporation
Memory products
PSB Quadro professional workstation products
Tesla high-performance computing products
CPB Tegra mobile products
Icera baseband processors and RF transceivers for mobile connectivity
Royalty license fees and other revenue related to video game consoles
GPU and Tegra products in embedded products and automobiles
GPU Business
Our GPU business revenue includes primarily sales of our GeForce discrete and chipset products that support desktop and notebook PCs plus license
fees from Intel and sales of memory products. GeForce GPUs enhance the gaming experience on consumer notebook and desktop PCs by improving the
quality of game graphics and the physical realism of the game environment. They also accelerate video editing and high definition, or HD, content creation by
consumers and improve the viewing experience. GeForce GPUs power PCs made by or distributed by most PC original equipment manufacturers, or OEMs,
in the world.
We ceased development of future chipset products based on the technology of the media and communications processor, or MCP, in the first quarter of
fiscal 2011 and expect MCP chipset revenue in fiscal 2013 to be immaterial. Our MCP chipsets primarily comprised of our ION motherboard GPUs, a
product reaching the end of its life cycle.
Professional Solutions Business
Our PSB consists of our Quadro professional workstation products and our Tesla high-performance computing products. Our Quadro products are
designed to deliver the highest possible level of graphics performance and application compatibility for professionals. Tesla applies the significant processing
power of our GPUs to general-purpose computing problems, greatly increasing performance and power efficiency over CPU-only solutions.
Quadro products improve performance and add functionality, such as photorealistic rendering, to computer-aided design workstations, and are used in
professional video editing applications and for generating special effects in movies. They are recognized by many as the standard for professional graphics
solutions needed to solve many of the world's most complex visual computing challenges in the manufacturing, entertainment, medical, science and aerospace
industries. Quadro products are fully certified by several software developers for professional workstation applications.
Our growth strategy for Quadro is twofold: increase our focus on emerging economies; and continue to make Quadro more valuable through innovations
such as our Maximus technology, which allows professionals to process compute-intensive tasks and visually intensive graphics simultaneously.
We believe industrial design is increasing in emerging economies, as manufacturers in, for example, Brazil, Russia, India and China, attempt to move up
the value chain from contract manufacture to full product design. Movie-making in these regions is becoming more sophisticated and is expected to make
more use of Quadro, just as Hollywood does today. All five nominated films for the special effects Oscar in 2011 used Quadro, while Bollywood's first action
blockbuster, RaOne, also depended on Quadro for computer-generated special effects.
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