nVidia Rolling in Dough: Forth Quarter and Fiscal 2002

[AGodspeed]

http://biz.yahoo.com/prnews/020214/sfth064_1.html

For the fourth quarter of fiscal 2002, revenues increased to $499.9 million, compared to $218.2 million for the fourth quarter of fiscal 2001, an increase of 129 percent. Pro forma operating income, which excludes the effects of acquisition related charges and amortization of goodwill and purchased intangible assets, for the fourth quarter of fiscal 2002 was $106.8 million, compared to pro forma operating income of $39.1 million in the fourth quarter of fiscal 2001. Pro forma net income, which excludes the effects of acquisition related charges and amortization of goodwill and purchased intangible assets, for the fourth quarter of fiscal 2002 was $75.5 million, or $0.43 per diluted share, compared to pro forma net income of $31.1 million, or $0.19 per diluted share, for the fourth quarter of fiscal 2001.

Actual net income for the fourth quarter of fiscal 2002 was $73.0 million, or $0.41 per diluted share, compared to actual net income of $31.1 million, or $0.19 per diluted share, for the fourth quarter of fiscal 2001.

Revenues for the year ended January 27, 2002 were $1.37 billion, an increase of 87 percent compared to revenues of $735.3 million for the year ended January 28, 2001. Pro forma operating income for the year ended January 27, 2002 was $264.7 million compared to $130.3 million for the year ended January 28, 2001. Pro forma net income for the year ended January 27, 2002 was $193.0 million, or $1.13 per diluted share, compared to pro forma net income of $99.9 million, or $0.63 per diluted share, for the year ended January 28, 2001.

nVidia is getting BIG.

 

[NFS4]

AHAHAHAHAHAHAHA

That's is some good shiznit!! I wonder what ATI's statements will look like

 

[Vegito]

I also heard they might have some falsify sales.. so dont get too excited..

 

[Adul]

holly shiznut!

 

[NFS4]

<< I also heard they might have some falsify sales.. so dont get too excited.. >>


Bla bla bla, and who told you that? Kenneth Lay?

 

[Vegito]

just so you know, I trade the stock, I got bloomberg, do nvda equity cn and it says trading halted: sales may have been improperly recorded in 2q , 3q

 

[Adul]

interesting. Breaking news?

 

[Leon]

CC started.

 

[Vegito]

my bloomberg screen says....

 

[Ausm]

<< I also heard they might have some falsify sales.. so dont get too excited.. >>




Like Enron did


Ausm

 

[Vegito]

AHAHAHAHAHAHAHA

NVIDIA CEO DECLINES TO TAKE QUESTIONS ABOUT SEC REVIEW

then

NVIDIA SAY SEC IS INVESTIGATING ACCOUNTING PRACTICES

this stock MIGHT tear tomorrow.. checking into instinet for market now..

 

[NFS4]

<< AHAHAHAHAHAHAHA

NVIDIA CEO DECLINES TO TAKE QUESTIONS ABOUT SEC REVIEW

then

NVIDIA SAY SEC IS INVESTIGATING ACCOUNTING PRACTICES

this stock MIGHT tear tomorrow.. checking into instinet for market now.. >>



:Q:Q

 

[Vegito]

i hope not its just some minor thing... not enron.. i dont think our economy can take too much of this.. might be fun to laugh and discuss but not good for the stock to go...

 

[GL]

They're also under investigation for insider trading by two non-executives. In fact, it was this first investigation that led them to question Nvidia's accounting practices.

 

[Vegito]

yeah, that insider trading, was it from the xbox a few month ago ?

 

[Leon]

Trading is definately halted, I just checked it myself. From what I've read, this is not a significant problem, but still disconcerning.
Stock will (hopefully) be up tomorrow based on blowout earning alone. Of course, we can expect some hysteria because of SEC investigation.

Also, they gave good guidance.

And some data:

Most revenues comes from GeForce 2 based cards, but TNT based cards contributed significally
NForce revenues increased 300%
Mobile/Apple revenues increased 56%

Microsoft is the biggest customer.

 

[Vegito]

hopefully.. 2003 earning est 2.3-2.5 billion...

u think it's because of xbox that microsoft is largest customer ?

 

[Leon]

<< u think it's because of xbox that microsoft is largest customer ?
>>



Yep, what else? $50 for XGPU (just a guess based on XBox sales figures and Nvidia last earnings release).

 

[GL]

<< yeah, that insider trading, was it from the xbox a few month ago ? >>



Yes. 11 Nvidia employees are (or were, I haven't been following this) being sued by the SEC after illegally profiting from insider information with regards to the X-box. I think what happened, is after turning over company e-mails and other documents, the SEC realized that some accounting practices were questionable.

 

[Random Variable]

SANTA CLARA, Calif. -(Dow Jones)- Nvidia Corp. (NVDA), in response to an inquiry from the Securities and Exchange Commission, said it is conducting an internal review of the recording of certain reserves and the timing of recording certain expenses relating to the fourth quarter of fiscal 2000 and the first three quarters of fiscal 2001.

The company's fiscal 2000 ended on Jan. 30, 2000 and fiscal 2001 ended on Jan. 28, 2001.

In a press release Thursday, the company said it is cooperating fully with the SEC, and in accordance with their suggestion and advice, has launched an independent review of these transactions.

The review will also include other periods.

Shares of Nvidia were halted on Nasdaq at $62.16, up 76 cents, or 1.2%.

 

[Finality]

<< SANTA CLARA, Calif. (Dow Jones)--Nvidia Corp. (NVDA, news, msgs), in response to an inquiry from the Securities and Exchange Commission, said it is conducting an internal review of the recording of certain reserves and the timing of recording certain expenses relating to the fourth quarter of fiscal 2000 and the first three quarters of fiscal 2001. >>





<< this stock MIGHT tear tomorrow.. checking into instinet for market now >>

I doubt it. Expenses can be accounted for differently in different ways. It really depends on what nvidia has expensed how it was expensed etc.

Companies sometimes decide to take a hit on an operation in a current quater simply because they where making a higher than expected NI so instead of delaying the hit they just take it now. The same goes if they where having a bad quater. FYI it is not common for continuing operations mainly on how the company views what those discontiniung operations do.

eg take AOL a couple of years ago they tried spreading the advertising expense for its current quater (and all subsequent quaters) to be spread evenly over the next 2 years. The reason? Current ad costs do not account for revenue that is currently occuring. ie they are a monthly service provider and someone that started an AOL account a few years ago will probably stay around for at least 2+ years. Of course AOL discontinued that practice because of pressure from investors. The auditting firms essentially reasoned that AOL had not long term data to justify such a practice.

The same could be the case with Nvidia. ie is nv17 research that was paid for in Q1 2001 account for any revenues? ie R&D comes and the revenues are generated in Q2 and Q3 (GF3, GF3 MX etc). As for legallity/justification of such an accounting practice is one thing I am not unsure off. Generally most companies account for R&D expenses in the current quater it was expensed simply because in a conservative accounting practice there is no way guarantee that any research done will amount to revenues in the future.

I suspect that this is pretty much what is going on with the SEC investigation. I guess we shall have to wait for some hard information from the company/sec to really know what is going on. FYI in the tech industry the 'soft' quaters are Q2/Q3 with the strong quaters being Q1/Q4.

I will be interested to see what happens in the end though and exactly what they did

 

[Finality]

<< Yep, what else? $50 for XGPU (just a guess based on XBox sales figures and Nvidia last earnings release). >>

Dont forget they also make the MCPX for M$.

Q4 revenues where in line with what I expected when you consider the # of Xboxs sold the number that is currently being produced and there normal revenues.

 

[Vegito]

last trade on instinet is 56, I see offers at 50 to 52 .. I hope these guys are idiot that sell low and market goes up.. or they're the smart one that sells before it tanks down..

 

[Leon]

More stuff from CC.

CEO excited about XBox and NForce (duh!)

Nvidia number 1 supplier of workstation graphics

New workstation boards coming, watch for announcements.

Captured 66% of standalone desktop market.

Captured 38% of total PC market (which includes retail, standalone, mobile, and integrated markets)

And some guidance

NVidia raises revenue, EPS view for fiscal 2003
SAN FRANCISCO, Feb 14 (Reuters) - Graphics chipmaker NVidia Corp. (NasdaqNM:NVDA - news) on Thursday raised its forecast for revenue and earnings per share in fiscal 2003, citing continued strong sales of its chips to PC makers and to Microsoft Corp. for use in its Xbox video game console.

The Santa Clara, California-based company expects fiscal 2003 revenues of $2.3 billion to $2.5 billion and earnings per share of $1.70 to $1.75, said NVidia's Chief Financial Officer Christine Hoberg on a conference call to discuss the company's fiscal fourth-quarter results.

Analysts currently expect per-share net income in all of fiscal 2003 of $1.42 and revenue of $1.94 billion, according to Thomson Financial/First Call.

NVidia expects quarterly revenue to increase 7 percent to 8 percent in each quarter throughout fiscal 2003, Hoberg said.

Previous guidance from NVidia for fiscal 2003 had been earnings per share of $1.30 and revenue growth of 40 percent over fiscal 2002, which translates to about $1.92 billion.

 

[Finality]

Forgot to add that the 3.6 Million is essentially chump change. Now if they where hiding more that would be something to worry about