NVIDIA Corporation (Nasdaq: NVDA) has reported financial results for the third quarter of fiscal 2007 ended October 29, 2006.
For the third quarter of fiscal 2007, revenue increased to a record $820.6 million, compared to $583.4 million for the third quarter of fiscal 2006, an increase of 41 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2007 was $106.5 million, or $0.27 per diluted share. GAAP net income for the third quarter of fiscal 2007 includes expenses of $42.6 million, net of tax, which is comprised primarily of stock-based compensation expense plus a one-time charge associated with licensing certain patents.
As previously announced, in June 2006 the Audit Committee of the Board of Directors of NVIDIA began a review of the Company`s stock option practices based on results of an internal review voluntarily undertaken by management. The Audit Committee`s review covered the time from the Company`s initial public offering in 1999 to the current fiscal year and as previously disclosed, found instances of the use of incorrect measurement dates for certain option grants.
The Audit Committee is being assisted by independent legal counsel and outside accounting experts. At this time, the Audit Committee has completed its forensic review of the option grants and is now working with the Company`s management to finalize the financial impact of using incorrect measurement dates.
Non-GAAP net income for the third quarter of fiscal 2007, which excludes SFAS 123R and other stock-based compensation charges and the related tax impact, was $149.2 million, or $0.39 per diluted share.
For the second quarter of fiscal 2007 ended July 30, 2006, previously reported revenue was $687.5 million. GAAP net income for the second quarter of fiscal 2007 was $86.8 million, or $0.22 per diluted share. GAAP net income for the second quarter of fiscal 2007 includes stock-based compensation expense net of tax of $25.3 million.
Non-GAAP net income for the second quarter of fiscal 2007, which excludes SFAS 123R and other stock-based compensation charges and the related tax impact, was $112.0 million, or $0.29 per diluted share.
“The third quarter was one of the best in NVIDIA`s history,” said Jen-Hsun Huang, president and CEO of NVIDIA. “For the third consecutive quarter, we delivered record revenue as we continued to gain share in each of our core businesses.”
Revenue for the nine months ended October 29, 2006 was a record $2.19 billion, compared to revenue of $1.74 billion for the nine months ended October 30, 2005, an increase of 26 percent.