NVIDIA 2013 Annual Report Download - page 12

> GPU revenue grew 7 percent* against a PC industry that
declined 10 percent. Our sharp focus on vertical markets
where visual computing matters paid off.
> Gross margins reached a record 55 percent,* widening
from 52 percent last year, and 35 percent fi ve years ago.
We have fundamentally shifted how we address our markets.
Building the best GPUs is just the beginning. We now focus
on creating the best visual computing platforms for key
vertical markets — Gaming; Design and Visualization; HPC
and Data Centers; Auto and Smart Devices.
> Revenue in HPC and Data Centers has grown at over 60
percent compound annual growth rate (CAGR) in four years
to nearly $200 million. Our GRID data center GPU platform is
being evaluated by hundreds of companies and institutions,
which can fi nally virtualize their entire enterprise, from data
center to PC clients. It will enable a new level of mobility to
over 500 million enterprise professionals worldwide.
> Tegra automotive won nearly $2 billion of new business
that will ship over the next several years. This underscores
our conviction that the mobile revolution is about more
than phones.
> We introduced Tegra K1, uniting our GPU and SoC proces-
sors under a single architecture. The 192-core super chip
brings the heart of GeForce and the soul of Tesla to mobile.
> Our innovation engine continued to fi re on all cylinders,
with patent assets growing 10 percent to approximately
7,000. We invented the GPU. Five years later, we invented
CUDA, which enables our graphics chip to serve as a
massively parallel general purpose processor. Recently,
we invented the virtual GPU, opening cloud computing to
rich interactive graphics. Invention is how we will extend
our position as the world leader in visual computing.
We returned $1.07 billion to shareholders through a combination
of share repurchases and cash dividends. We also completed
a $1.5 billion convertible debt offering, which we expect to
use for stock repurchases, dividend payments and general
corporate purposes. Revenue dipped 3.5 percent, while net
income declined 22 percent to $440 million as we invested
for future growth.
Challenges were faced by our Tegra processor business which
declined, although it has grown 48 percent CAGR over the past
four years. Impacting last year’s performance was our decision
to delay some products so that we could accelerate Tegra K1
and supercharge our efforts by unifying our entire company
around one architecture. Now, mobile computing has access
to the same disruptive GPU that has established our leading
position in gaming and design, and is revolutionizing HPC
and data centers. And we can leverage our expertise and
investments across every major computing platform.
NVIDIA HAD A
BREAKOUT YEAR
DEAR STAKEHOLDERS,
THE YEAR IN REVIEW