This is a summary of the fourth quarter fiscal 2009 earnings call as presented by NVIDIA Corporation on February 10, 2009.
Management:
- President and Chief Executive Officer: Jen-Hsun Huang
- Vice President of Investor Relations : Michael W. Hara
- Chief Financial Officer : Marvin D. Burkett
Key Investors Issues
- NVIDIA announced the NVIDIA Ion(TM) Platform, which combines the highly acclaimed GeForce(R) 9400 GPU with the Intel Atom CPU.
- Fourth quarter net loss of $147.7 million or 27 cents per share.
- Revenue declined by 60% in the fourth quarter to $1.2 billion.
Full Year Highlights:
- Revenue was $3.4 billion which is down from the prior year by 16%.
- Net loss was $30 million, or 5 cents per share, compared to net income of $797.6 million, or $1.31 per diluted share for the previous year.
Fourth Quarter Highlights:
Revenue for the fourth quarter was $481.1 million which is down 60% from the same quarter the previous year.
- The weakness in demand for the fourth quarter was across the board. Compared to the third quarter the GPU business was down 47%.
- The Professional Services business was down 44%; and the NCP business was down 51%.
- Within the GPU business desktop was down 34% as the firm regained some market share particularly in the high end, but the overall high end market was very soft.
The firm aims to set an operating expense level that balances cash conservation while allowing continued investment
- The stretch goal is to reduce operating expense by $35 million from the current level of $300 million per quarter by the end of the second quarter.
- 2008 was one of the firms best years for innovation with advances in graphics processing.
The company introduced PhysX, the industry''s first GPU accelerated physics processing.
- In the fourth quarter the market share was recaptured in the performance segment and share gains will be maintained by offering the highest performance products while differentiating with advantages in PhysX, CUDA and 3-D Vision.
- Tesla was shifted for revenues this year and officially started the era of GPU computing
- With CUDA NVIDIA was able to speed up general purpose computer intensive applications as in 3-D graphics processing.
There are now over 1,000 customers around the world including Motorola, Chevon, GE Healthcare and even General Mills the consumer products company.
- Tesla has become the first GPU used in super computing and now powers Japan''s Tsubame, the 29th fastest supercomputer in the world.
Popular off the shelf software packages such as ANSYS, LANView and Mathematica are now CUDA accelerated.
- SIMCORPS sells check scanners that use CUDA for image recognition to detect fraud.
- CYCOMP uses CUDA in their derivatives pricing software.
- Medical equipment is now available from Technic Scan that uses CUDA to enhance early detection of breast cancer, reducing the analysis from a three hour process to just 16 minutes, making single visit diagnosis possible for the first time.
NVIDIA launched the Tesla personal supercomputer and enabled a four Teraflop supercomputer at the price of a typical workstation.
- One of the major initiatives last year was to capture a significant position in mobile computing by introducing innovative and market defining products.
- Through low power architecture and innovation, the firm''s GPU''s can simultaneously increase notebook performance while extending battery life.
- The recently announced high performance GPU Ion platform is now shipping or will be soon from virtually every major PC OEM.
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