For notebook PCs, users face an impossible choice between performance and battery life. GPUs give the PC great graphics and snappiness but consume more power. That’s why we have invented Optimus, a powerful combination of software and hardware innovation that provides the performance of discreet graphics while still delivering great battery life.

Unlike early attempts at hybrid solutions Optimus is seamless and transparent to the user. Notebook check reported, “We are excited about Optimus. Switchable graphics solutions will finally grow up and offer to end users in all laptop classes distinct advantages.”

Engadget stated, ""We’ve always thought switchable graphics made a lot of sense on laptops and NVIDIA’s new Optimus technology looks like it’s going to bring it to the mainstream in a serious way.""

Seven models are available now and we expect more than 50 systems will be available by summer. Optimus is unprecedented and unique to NVIDIA. We believe Optimus has the potential to expand the overall footprint for discreet GPUs by increasing the GPU attach rate in the notebook segment.

Mobile commuting will be the next personal computer revolution and it’s just at the beginning. This was clearly evident at this year’s Consumer Electronics Show. The undeniable trend of computing is surely smaller and more mobile.

CES was the coming out event for tablets and the perfect venue for us to unveil our next-generation Tegra mobile processor. It is the world’s first processor for the mobile web, specifically designed for the high-resolution needs of tablets.

Tegra combines lightning quick browsing, streaming 1080p video and Flash 10.1 acceleration with an immersive 3D user interface and days of battery life. The combination gives tablets access to the whole web, just as if you were at your desk. The entire internet is an app store when you have a native web experience.

Facebook alone has hosted more than 500,000 applications. An uncompromised browsing experience is what Tegra -- makes Tegra so disruptive. For the typical consumer, a Tegra tablet will meet all of their needs in a more convenient form factor that’s instant on, always connected and offer days of battery life.

OEMs and carriers alike are equally excited about the potential of the tablet platform. NVIDIA, Motorola and Verizon privately demonstrated streaming 1080p video, highlighting the combined capabilities of Tegra and a Motorola 4G wireless modem operating over the Verizon LTE pre-commercial network. We have multiple next-gen Tegra design wins in tablets, smartbooks and SmartPhones, with the first of these expected to ship in Q2.

3D stereo was the other big story at CES. 3D Blu-ray was everywhere and 3D TV’s ubiquitous. ESPN announced the first 3D network. NVIDIA has been a pioneering force in 3D stereo and this was clear at show when we took 3D Vision to the next level with 3D Vision Surround.

3D Vision Surround is the world’s first consumer multimedia -- multi-display 3D solution. It allows users to span 3D consent across three high-definition monitors or projectors for a truly breathtaking and immersive gaming experience.

3D Vision is a great fit for high-end notebooks. ASUS launched its first 3D notebook at CES with more OEMs following suit in Q2. Over 420 games now support NVIDIA 3D Vision.

SLI defined high-end gaming and we believe that 3D Stereo will do it again. We are very excited about Q1. Premieres in production and we plan to launch many new GPU products in the coming months but we’ll save the details for later.

With that, let me hand the call over to David.

David L. White

Thanks, Mike. Q4 was another good quarter driven by an improving PC market and better mix. Revenue was $982.5 million above guidance and up 9% sequentially, marking the fourth consecutive quarter of strong results.

GAAP gross margin was 44.7%, significantly higher than guidance, GAAP OpEx was $304.4 million in line with guidance and GAAP net income was $131.1 million or $0.23 per diluted share.

The core GPU business had another strong quarter. Within that our desktop GPU business was up 19%, notebook was up 27% and workstation graphics was up 25% in the quarter. Demand was strong, but we were, again, constrained by supply across the board.

Gross margin improved sequentially as a result of several factors, cost reductions due to yield improvements and reduced waste, favorable mix from our professional business, better mix within the PC GPU business and increased revenues.

Inventories at the end of the quarter were up 19% to $330.7 million. Inventory days on hand was 60 at the end of the quarter. Inventory in the channel remains low at around five weeks. Cash and cash equivalents, marketable securities at the end of the quarter were approximately $1.73 billion up approximately $94 million from the third quarter.