NVIDIA 2013 Annual Report Download - page 183

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Recent Developments, Future Objectives and Challenges
GPU Business
During fiscal year 2014, we announced and shipped our new family of high-end Kepler-based gaming GPUs - GeForce
GTX Titan, GeForce GTX 780, GeForce GTX 780 Ti, GeForce GTX 770 and GeForce GTX 760, and introduced G-SYNC
technology that enables synchronization between the GPU and the display to help eliminate on-screen lag.
In addition, we extended our Kepler technology further into the workstation market by shipping four new professional
graphics products under our Quadro K Series, including our most powerful workstation graphics card - the Quadro K6000.
Furthermore, we launched Tesla K40, an accelerator for supercomputing and enterprise data analytics, and partnered with
IBM to build supercomputers for the high performance computing community.
For the cloud computing platform, we launched GRID VCA - the industry's first visual computing appliance that enables
businesses to deploy cloud-based, GPU-accelerated applications through any Windows, Linux or Mac client on their network.
We also announced that VMware Horizon View supports NVIDIA GRID technology and that Citrix’s XenDesktop 7 has
fully integrated our GRID vGPU technology to share GPUs across virtual machines. Finally, we announced an IP licensing
initiative designed to bring our GPU technology to new markets and generate revenue from markets previously inaccessible
to us.
Tegra Processor Business
During fiscal year 2014, we announced our first fully integrated 4G LTE mobile processor - Tegra 4i, and extended
our reach in the mobile devices market with the first shipments of Tegra 4 devices - including Xiaomi's Mi3 smartphone in
China and Tegra Note, a complete tablet platform. We also launched our next generation mobile system-on-a-chip, Tegra
K1, extending the Kepler architecture across the Company’s entire line of processors, displayed Denver, our custom 64-bit
ARM core inside Tegra K1, and showed Android running on 64-bit ARM.
In addition, we announced that Audi introduced a new Tegra-powered infotainment system, smart display and digital
cockpit and that Audi would use Tegra K1 to power its future piloted-driving initiatives. Finally, we started shipping SHIELD,
an open-platform gaming and entertainment portable that enables gamers to play Android games or stream games from a
PC with a GeForce processor.
Convertible Notes
On December 2, 2013, we issued $1.5 billion of 1.00% Convertible Senior Notes, or the Notes, due in 2018 and
concurrently entered into separate note hedge and warrant transactions and used $14.3 million to repurchase shares of our
common stock from purchasers of the Notes in privately negotiated transactions. In addition to using the net proceeds to
fund the transaction costs, note hedge and warrant transactions, we further intend to use the proceeds to repurchase of shares
of our common stock and pay cash dividends pursuant to our recently announced fiscal year 2015 capital return program,
and for general corporate purposes. Please refer to Note 11 of the Notes to the Consolidated Financial Statements in Part
IV, Item 15 of this Annual Report on Form 10-K for further discussion.
Capital Return to Shareholders
During fiscal year 2014, we repurchased shares worth $887.3 million, paid a total of $181.3 million in dividends and
increased our quarterly cash dividend by 13% to $0.085 per share. We have announced our intention to return $1.0 billion
to shareholders in fiscal year 2015 in the form of share repurchases and dividends. As part of our capital return program,
during February 2014 we entered into an accelerated share repurchase agreement to purchase $500.0 million in shares of
our common stock.