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NVIDIA Announces Second Quarter Financial Performance for 2020

SANTA CLARA, Calif., August 15, 2019 (GLOBE NEWSWIRE) – NVIDIA (NASDAQ: NVDA) at the moment reported $ 2.58 billion in income for the second quarter ended July 28, 2019, compared with $ three.12 billion a yr earlier. $ 2.22.

GAAP earnings per share for the quarter have been $ zero.90, compared with $ 1.76 a yr earlier and $ 0.64 for the prior quarter. Non-GAAP diluted earnings per share have been $ 1.24, in contrast with $ 1.94 a yr earlier and $ 0.88 for the prior quarter.

"We achieved consecutive growth on all our platforms," ​​stated Jensen Huang, founder and CEO of NVIDIA. “Actual-time beam tracking is an important graphic innovation of the decade. Acceptance has reached a verge and NVIDIA RTX has proven the best way. "19659002]" NVIDIA-accelerated computational momentum continues to grow as the business competes to allow the subsequent frontier with synthetic intelligence, conversational auto-intelligence, and stand-alone methods reminiscent of self-driving. automobiles and supply robots, "he stated.

NVIDIA can pay its $ 0.16 per share money share on September 20, 2019 to all shareholders with a document variety of August 29, 2019. The company's cash and money move priority is the purchase of Mellanox Technologies, Ltd. is returning to repurchase after the completion of the Mellanox acquisition, the legal approval course of for this acquisition is continuing as anticipated, and NVIDIA will proceed to finish the transaction by the top of this calendar yr.

Q2 Fiscal Yr 2020

GAAP

, excluding earnings) per share) Q2 FY20 Q1 FY20 Q2 FY19 Q / Q Y / Y
Turnover $ 2,579 [$19659015] $ 3.60 16% down 17%
Gross margin 59.8% 58.4% 63.three% Improve 140 bps Down 350 bps
Operating bills $ 970 [19659016] $ 938 $ 818 up three% up 19 %
Working revenue $ 571 $ 358 $ 1,157 59% . ] Internet Revenue $ 552 $ 394 $ 1,101 40% Declining 50%
Diluted Earnings Per Share $ 0.90 $ zero.65 [19659016] 1.651 41% down 49%
non-GAAP
($ in million, excluding earnings per share) Q2 FY20 Q1 FY20 Q2 FY19 Q / Q Y / Y
Turnover 2,579 $ 2220 $ 3 123 Rise 16% Down 17%
Gross Margin 60.1% 59 , zero% 63.5% Increase 110 bps Down 340 bps
Working bills $ 749 $ 753 $ 692 Lower 1% ] up to eight%
Working profit $ 802 $ 557 $ 1,290 . Declining 38%
Internet Revenue $ 762 $ 543 $ 1,210 Elevated 40% Declining 37%
Diluted Earnings Per Share $ 1.24 ] $ zero.88. $ 1.94 41% down 36%

NVIDIA's outlook for the third quarter of 2020 is as follows:

  • Revenue is predicted to be $ 2.90 billion, plus or minus 2%.
    GAAP and non-GAAP gross margin percentages are anticipated to be 62.0 % and 62.5 %, respectively, plus or minus 50 basis points.
  • GAAP and non-GAAP working prices are anticipated to be roughly $ 980 million and $ 765 million, respectively.
  • GAAP and non-GAAP other revenue and bills are expected to generate income of approximately $ 25 million.
    GAAP and non-GAAP tax charges are each expected to be 10 % plus or minus 1 %, excluding any separate gadgets. GAAP's separate gadgets embrace further tax benefits or equity-based compensation deficiencies, which are expected to supply quarterly fluctuations.

Highlights

Because the finish of the first quarter of 2020, NVIDIA has made progress in these areas:

Knowledge Middle

  • introduced breakthroughs in language understanding that allow organizations to program in actual time, operating performance and operating BERT AI
  • announced that NVIDIA's DGX SuperPOD ™ – which offers AI infrastructure for enterprise autonomous car improvement software – ranked as the 22nd fastest supercomputer on the earth and its reference architecture is commercially obtainable by way of companions.
  • Set eight data for AI coaching in current MLPerf benchmarking checks.
  • Introduced help for Arm processors by offering a brand new path to building extremely power efficient supercomputers with AI capabilities.

Gaming

Professional Visualization

Automotive

  • The Volvo Group introduced its use of . The NVIDIA DRIVE ™ stand-alone driveline educates networks within the knowledge middle, simulates them, and deploys them in self-propelled automobiles, concentrating on freight transport, waste and recycling assortment, public transportation, development, mining, forestry and extra.

CFO Comment

A quarterly comment from NVIDIA Vice President and CFO Colette Kress is obtainable at http://investor.nvidia.com/ .

Convention Name and Webcast Info

NVIDIA will hold a convention call with analysts and buyers to discuss Q2 / 2020 monetary outcomes and present monetary outlook at present at 2:30 p.m. Pacific Time (5:30 pm Japanese Time). The stay webcast of the convention name (Pay attention Solely) could be accessed on the NVIDIA Investor Relations web site, http://investor.nvidia.com . The webcast shall be recorded and playable until NVIDIA arranges a conference name to debate monetary outcomes for the third quarter of 2020.

Non-GAAP Measures

supplements NVIDIA's condensed revenue assertion and condensed consolidated stability sheet. In accordance with GAAP, the Firm uses certain elements of its monetary efficiency that are not in accordance with GAAP. These non-GAAP measures embrace non-GAAP gross revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating revenue, non-GAAP revenue (expense), -GAPP revenue tax expense, -GAPP internet revenue, non-GAAP internet revenue or diluted earnings per share, primary shares, and free cash circulate. So as for NVIDIA buyers to raised examine their current results with these of prior durations, the company has demonstrated that GAAP and non-GAAP financial measures are reconciled. These reconciliations modify the associated GAAP financial preparations to exclude share-based compensation costs, legal bills, acquisition and other prices, positive factors and losses on non-related investments, curiosity expense related to debt aid and related tax effects, the place applicable. The weighted average variety of unusual shares utilized in primary non-GAAP earnings per share consists of the dilution effect of Observe Hedging. Free cash movement is calculated as the web GAAP of the enterprise much less the acquisition of tangible and intangible belongings. NVIDIA believes that presenting non-GAAP strategies will improve the consumer's understanding of the corporate's historical financial efficiency. The presentation of non-GAAP financial measures by an entity just isn’t meant to be separate or substitute for its monetary outcomes ready in accordance with GAAP. Company non-GAAP procedures might differ from non-GAAP methods. other corporations.

NVIDIA CORPORATION
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in tens of millions, excluding share info)
(ended 19659129) ] six months ended
28. July 29, 19659116 July [196591130] . , 29. July
2019 2018 . ] 2019 2018
[19659129]
turnover $ 2,579 $ 3,123 [1965[1969] 595 [1965[1969] 595 [1965[1969] 595 [1965[1969] 595. 6330
value of entry 1038 1.148 . 2,287
Gross profit 1,541 1,975 [196591912] 1975 [1965]. 2837 4,043
Operating expenses . 19659249] analysis and improvement 704 581 1379 . 9220] 1,124
gross sales, common and administrative 266 237 [196591912] 237 19659193 529 467
Complete operating bills 970 818 1,908 1,591
income from operations [1965[1969] 1969 19659129] 1,157 929 19659124] 2,452
19659194] 47 92 [19659194] 57
interest expense (13 ) (14 . (27 ) (29 )
others, internet 1 . 1 11
other revenue (expense) . 35 23 66 39 [vuonna19659192] 606 19659124] 1180 995 . 19659192] revenue tax expense [19659194] 54 79 48 ] $ 552 $ 1,101 $ 947 2,3 .
Internet earnings per share: .
primary greenback 0.91 1.81 1.81 [19659206] 1.81 1.81 . 1.56 $ three.86
gained $ 0.90 ]. 1,76 $ [19659454] 1.54 3.74
[19659582] .
Variety of Weighted Common Shares Used in Share Calculation: [19659826] 19659146] 607 608 607
. 19659194] 616 626 616 [1965[1969] 1965 [1965] 1965 [1965] 1965] CORPORATION
CONSOLIDATED CONSOLIDATED LOTS
(hundreds of thousands)
(unaudited)
]
28. July 27, 19659116 January
. 19659579] 2019 2019
UTILITIES
Money, cash and marketable securities 19659606]
inventories 1,204 1,575
other belongings 151 136
present belongings 11,391] 10,557
Belongings and internet belongings . 1,404
operating lease belongings 535 [1965929365] ] 618 618
intangible belongings, internet 49
45
deferred tax liabilities 588 560
different belongings 110 110 108
Complete Belongings 14,775 13,292
. ]
LIABILITIES AND SHAREHOLDERS 'EQUITY Present liabilities: 19659124] 437 511
Accrued and different current liabilities 880 818
complete current liabilities . 1317 1329
] 1,989,9289] ] 1,988
long run operating lease liabilities 483 ] 19659606] –
[19659220at] Other 1965 velos 633
Complete debts four 439 three,950
]
fairness 10 336 [1965] 1962 [1965] 19659220] Complete liabilities 19659577] dollars 14,775 dollars 13,292
] ]

Share-based Compensation Costs (A)

Acquisition and different costs

Legal Settlement Costs

Complete Effect of Non-GAAP Changes on Operating Revenue

Complete impression of non-GAAP adjustments before tax

Revenue Tax Effects of Non-GAAP Adjustments (B)

[19659861]
IMPLEMENTING THE LEVEL OF NVIDIA CORPORATION
(1965). Hundreds of thousands excluding share info)
(unaudited)
19659608] [19659883 [1965934] months ended
July 28, [196591330]. 28, 29. July 28, 19659116 July 29, 19659316 July
2019.] 2019 2018 2019 2018 ] $ [19659194] 1,541 19659293] 1,296 1,975 ] [ 4,043
Gross GAAP 59.8 58.4 19659129] 63.three % 59.1 % 63.9 %
eight four 8 12 16
Authorized Settlement Costs 2 . ] 10 11
gross revenue . 19659420] $ 1,310 $ 1,983 $ 2860 . 4,zero59
non-GAAP gross margin 60.1 % 59.zero 59.0 63.5 % 59.6 % 64.1 %
[19659129]
GAAP operating expenses 970 ] 938 [19659193] 818 [ ] 1,908 1,9659124] 1 ]
alternative value (A) (216 ) (174 ) (124) (389 ) (246 )
. ] (5 ) (10 ) (2 ) (15 1969) . ]) (four )
to . ) [19659193] (2 ) GAAP Operating Bills 749 $. 753 $ 692 $ 1,502 $ 1,341 19659883]
[tulot1969003]
GA. 19659194] 571 $ 358 $ 1,157 $ ] 2,452
231 [196592] 199 133 429 266
non-GAAP income ] 802 ] . ] 2,718
. ]
GAAP Other Income (Expense) 35 [ ] 31 23 . 19659195] $ 66 $ 39
income from untied investments [1965]. ] – (2 ) . 19659195])
interest expense associated to debt discount amortization to [1965193] [1965193] [1965938]. 19659194] – 1 1
non-GAAP other revenue (expense) ] ] 35 $ 31 $ 21 $ 67 [19659418] $ 32
. 19659962] GAAP-net e $ 552 $ 394 $ 1101 . 947 $ 2,345
231 199 131 430 [1965919]]. 19659195]
(21 ) (50 ) [19660228] (22 ) (72 ) (109 )
non-GAAP internet revenue $ 762 [19659453] 543 1210 1,305 . ]
[laimennettu nettotuotto / osake ]
GAAP 0.90 [0,905]. 19659129] $ 0.64 $ 1,76 $ 1.54 . ] three.74
non-GAAP $ 1.24 0.83 0.88 zero.83 . ] 1,94 2,12 $ three.99 . 19659143]
Weighted common shares used to calculate diluted earnings per share . 19659220]
GAAP 616 616 [1965] 1969 [1969]. 626 616 627
19659124] (1 ) . – (1 )
non-GAAP 616 . 616 625 616 626 . 19659129]
[GAAP: n nettorahavirta] 19659194] 936 ] 720 $ 913 ] $ 2,358 purchases of property and intangible belongings (113 ) (128 ) (128) (241 ) (247)
free cash stream $ 823 $ 592 $ 785 . ] $ 1,415 $ 2,111
.
[19660732]
(A) Inventory-based compensation consists of the next: Three Months Ended Six Months Ended
July 28, April 28, [19659130] July 29, July 28, July 29,
2019 [19659492] [19659608] 2019 [19659492] [19659608] 2018 [19659492] [19659608] 2019 [19659492][19659293] 2018
Value of revenue $ eight $ 4 [19659146] $ eight $ 12 $ 16
Analysis and improvement
$ 145 $ 114 $ 76 $ 259 259 259 259 $ 150
Gross sales, basic and administrative $ 71 $ [19659129] 60 $ 48 $ 130 $ 96 ] [19659639] [19659639]
(B) Revenue tax influence of non-GAAP changes, together with recognition of extra tax benefits or deficiencies related to stock-based compensation underneath GAAP accounting normal (ASU 2016-09).
[19659293]
NVIDIA CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK
Outlook
GAAP Gross margin 62.zero %
Impression of stock-based compensation expense 0.5 [19659771]%
Non-GAAP Gross Margin 62.5 %
Q3 FY2020 [19459757] Outlook
19659293] (In tens of millions)
GAAP operating bills $ 980
Stock-b ased compen sation expense, acquisition-related prices, and other prices (215 )
Non-GAAP operating bills $ 765

About NVIDIA

NVIDIA's (NASDAQ: NVDA) invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined trendy pc graphics and revolutionized parallel computing. More just lately, GPU deep learning ignited trendy AI ― the subsequent period of computing ― with the GPU appearing because the mind of computers, robots and self-driving automobiles that can understand and perceive the world. More info at http://nvidianews.nvidia.com/.

For further info, contact:

Sure statements on this press launch including, but not limited to, statements as to: real-time ray tracing being an important graphics innovation in a decade; adoption of ray tracing reaching a tipping level with RTX leading the best way; NVIDIA accelerated computing momentum continuing to build because the business races to allow the subsequent frontier of synthetic intelligence and autonomous methods; NVIDIA’s meant capital return; NVIDIA’s next quarterly cash dividend; the precedence of NVIDIA’s money stability being the acquisition of Mellanox; NVIDIA returning to repurchasing its inventory after the shut of the Mellanox acquisition; the regulatory approval course of for the Mellanox acquisition progressing and NVIDIA persevering with to work toward closing the deal by the top of this calendar yr; NVIDIA’s financial outlook for the third quarter of fiscal 2020; NVIDIA’s expected tax charges for the third quarter of fiscal 2020; NVIDIA’s expectation to generate variability from excess tax advantages or deficiencies; NVIDIA’s help for Arm CPUs providing a path to construct exascale supercomputers; breakthroughs in language understanding enabling real-time conversational AI and its efficiency; NVIDIA DGX SuperPOD’s availability; new video games that includes ray tracing and it propelling the momentum of RTX know-how; the launch of laptops by major makers; the benefits, impression and efficiency of our technologies, including the RTX SUPER GPU strains, NVIDIA Studio platform and NVIDIA RTX ray tracing; NVIDIA RTX ray tracing emerging as the brand new business commonplace and supporting more than 40 key purposes; and Volvo Group’s uses of NVIDIA DRIVE are forward-looking statements which are subject to risks and uncertainties that would trigger outcomes to be materially totally different than expectations. Necessary elements that would cause actual outcomes to vary materially embrace: international economic circumstances; our reliance on third parties to fabricate, assemble, package deal and check our merchandise; the impression of technological improvement and competitors; improvement of latest products and applied sciences or enhancements to our present product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software program defects; modifications in shopper preferences or calls for; modifications in business requirements and interfaces; sudden loss of performance of our products or technologies when integrated into methods; in addition to other elements detailed every so often in the newest stories NVIDIA information with the Securities and Trade Fee, or SEC, including, but not restricted to, its annual report on Type 10-Okay and quarterly stories on Type 10-Q. Copies of studies filed with the SEC are posted on the corporate’s website and can be found from NVIDIA without cost. These forward-looking statements are usually not ensures of future performance and converse only as of the date hereof, and, besides as required by regulation, NVIDIA disclaims any obligation to update these forward-looking statements to mirror future occasions or circumstances.

© 2019 NVIDIA Company. All rights reserved. NVIDIA, the NVIDIA emblem, GeForce, GeForce RTX, GeForce RTX SUPER, NVIDIA DGX SuperPOD, NVIDIA DRIVE, NVIDIA RTX, NVIDIA Turing, Quadro and Quadro RTX are logos and/or registered logos of NVIDIA Corporation within the U.S. and/or different nations. Different company and product names could also be logos of the respective corporations with which they’re related. Options, pricing, availability, and specifications are subject to vary without discover.

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