Delaware
|
94-3177549
|
(State
or Other Jurisdiction of
|
(I.R.S.
Employer
|
Incorporation
or Organization)
|
Identification
No.)
|
|
Page
|
|
|
||
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
21
|
||
30
|
||
30
|
||
31
|
||
31
|
||
45
|
||
45
|
||
45
|
||
45
|
||
46
|
||
47
|
|
Three
Months Ended
|
||||||
|
April
29,
2007
|
April
30,
2006
|
|||||
Revenue
|
$
|
844,280
|
$
|
681,807
|
|||
Cost
of revenue
|
464,142
|
393,134
|
|||||
Gross
profit
|
380,138
|
288,673
|
|||||
Operating
expenses:
|
|||||||
Research
and development
|
158,321
|
123,202
|
|||||
Sales,
general and administrative
|
80,571
|
63,962
|
|||||
Total
operating expenses
|
238,892
|
187,164
|
|||||
Income
from operations
|
141,246
|
101,509
|
|||||
Interest
income
|
13,208
|
8,808
|
|||||
Other
expense, net
|
(665
|
)
|
(245
|
)
|
|||
Income
before income tax expense
|
153,789
|
110,072
|
|||||
Income
tax expense
|
21,530
|
18,712
|
|||||
Income
before change in accounting principle
|
132,259
|
91,360
|
|||||
Cumulative
effect of change in accounting principle, net of tax
|
-
|
704
|
|||||
Net
income
|
$
|
132,259
|
$
|
92,064
|
|||
|
|||||||
Basic
income per share:
|
|||||||
Income
before change in accounting principle
|
$
|
0.37
|
$
|
0.26
|
|||
Cumulative
effect of change in accounting principle
|
-
|
-
|
|||||
Basic
net income per share
|
$
|
0.37
|
$
|
0.26
|
|||
|
|||||||
Shares
used in basic per share computation
|
360,831
|
347,937
|
|||||
|
|||||||
Diluted
income per share:
|
|||||||
Income
before change in accounting principle
|
$
|
0.33
|
$
|
0.23
|
|||
Cumulative
effect of change in accounting principle
|
-
|
0.01
|
|||||
Diluted
net income per share
|
$
|
0.33
|
$
|
0.24
|
|||
|
|||||||
Shares
used in diluted per share computation
|
398,866
|
389,428
|
|||||
|
April
29, 2007
|
January 28,
2007
|
||||||
ASSETS
|
|
|
|||||
Current
assets:
|
|
|
|||||
Cash
and cash equivalents
|
$
|
678,951
|
$
|
544,414
|
|||
Marketable
securities
|
628,073
|
573,436
|
|||||
Accounts
receivable, net
|
471,519
|
518,680
|
|||||
Inventories
|
332,635
|
354,680
|
|||||
Prepaid
expenses and other current assets
|
43,055
|
40,560
|
|||||
Total
current assets
|
2,154,233
|
2,031,770
|
|||||
Property
and equipment, net
|
271,190
|
260,828
|
|||||
Goodwill
|
291,077
|
301,425
|
|||||
Intangible
assets, net
|
50,914
|
45,511
|
|||||
Deposits
and other assets
|
33,454
|
35,729
|
|||||
|
$
|
2,800,868
|
$
|
2,675,263
|
|||
|
|||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
334,046
|
$
|
272,075
|
|||
Accrued
liabilities
|
289,821
|
366,732
|
|||||
Total
current liabilities
|
623,867
|
638,807
|
|||||
Other
long-term liabilities
|
81,107
|
29,537
|
|||||
Commitments
and contingencies - see Note 13
|
|||||||
Stockholders’
equity:
|
|||||||
Preferred
stock
|
—
|
—
|
|||||
Common
stock
|
393
|
388
|
|||||
Additional
paid-in capital
|
1,377,513
|
1,295,650
|
|||||
Treasury
stock, at cost
|
(612,120
|
)
|
(487,120
|
)
|
|||
Accumulated
other comprehensive income, net
|
1,284
|
1,436
|
|||||
Retained
earnings
|
1,328,824
|
1,196,565
|
|||||
Total
stockholders' equity
|
2,095,894
|
2,006,919
|
|||||
|
$
|
2,800,868
|
$
|
2,675,263
|
|||
|
|
Three
Months Ended
|
|
||||
|
April
29,
2007
|
|
April
30,
2006
|
|
||
Cash
flows from operating activities:
|
|
|
|
|
||
Net
income
|
$
|
132,259
|
|
$
|
92,064
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
37,405
|
|
|
24,111
|
|
Depreciation
and amortization
|
|
31,334
|
|
|
24,031
|
|
Gross
tax benefit from stock-based compensation
|
|
-
|
|
|
(7,330
|
)
|
Other
|
|
60
|
|
|
153
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable
|
|
47,847
|
|
|
(64,135
|
)
|
Inventories
|
|
22,840
|
|
|
(87,958
|
)
|
Prepaid
expenses and other current assets
|
|
(2,642
|
)
|
|
(3,332
|
)
|
Deposits
and other assets
|
|
2,275
|
|
|
(3,406
|
)
|
Accounts
payable
|
|
61,344
|
|
|
107,729
|
|
Accrued
liabilities and other long-term liabilities
|
|
(26,233)
|
|
|
(32,391
|
)
|
Net
cash provided by operating activities
|
|
306,489
|
|
|
49,536
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
Purchases
of marketable securities
|
|
(268,211
|
)
|
|
(92,344
|
)
|
Proceeds
from sales and maturities of marketable securities
|
|
214,775
|
|
|
22,523
|
|
Purchases
of property and equipment and intangible assets
|
|
(37,627
|
)
|
|
(67,026
|
)
|
Acquisition
of businesses, net of cash and cash equivalents
|
|
-
|
|
|
(20,667
|
)
|
Net
cash used in investing activities
|
|
(91,063
|
)
|
|
(157,514
|
)
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
Payments
for stock repurchases
|
|
(125,000
|
)
|
|
(50,000
|
)
|
Proceeds
from issuance of common stock under employee stock plans
|
|
44,111
|
|
|
86,655
|
|
Gross
tax benefit from stock-based compensation
|
|
-
|
|
|
7,330
|
|
Net
cash provided by (used in) financing activities
|
|
(80,889
|
)
|
|
43,985
|
|
Change
in cash and cash equivalents
|
|
134,537
|
|
|
(63,993
|
)
|
Cash
and cash equivalents at beginning of period
|
|
544,414
|
|
|
551,756
|
|
Cash
and cash equivalents at end of period
|
$
|
678,951
|
|
$
|
487,763
|
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
Cash
paid for income taxes, net
|
$
|
1,916
|
|
$
|
24,645
|
|
Other
non-cash activities:
|
||||||
Unrealized
gains/(losses) from marketable securities
|
$
|
(213
|
)
|
$
|
824
|
|
Deferred
stock-based compensation
|
$
|
-
|
$
|
3,604
|
Three
Months Ended
|
|||||
|
April
29,
|
|
April
30,
|
||
|
2007
|
|
2006
|
||
(In
thousands)
|
|||||
Cost
of revenue
|
$
|
2,809
|
|
$
|
1,227
|
Research
and development
|
|
22,400
|
|
|
14,426
|
Sales,
general and administrative
|
|
12,196
|
|
|
6,572
|
Total
|
$
|
37,405
|
|
$
|
22,225
|
Three
Months Ended
|
||||||
April 29, 2007
|
April
30, 2006
|
|||||
|
(Using
a
binomial
model)
|
|
(Using
a
binomial
model)
|
|
||
Weighted
average expected life of stock options (in years)
|
|
3.9
- 5.8
|
|
|
3.6
- 5.1
|
|
Risk
free interest rate
|
|
4.6
|
%
|
|
4.7
|
%
|
Volatility
|
|
39%
- 45
|
%
|
|
39%
- 41
|
%
|
Dividend
yield
|
|
—
|
|
|
—
|
|
Three
Months Ended
|
||||||
|
|
April
29, 2007
|
|
|
April
30, 2006
|
|
|
|
(Using
the
Black-Scholes
Model)
|
|
|
(Using
the
Black-Scholes
model)
|
|
Weighted
average expected life of stock options (in years)
|
|
0.5
- 2.0
|
|
|
0.5
- 2.0
|
|
Risk
free interest rate
|
|
3.52%
- 5.15
|
%
|
|
1.6%
- 4.6
|
%
|
Volatility
|
|
38%
- 47
|
%
|
|
30%
- 45
|
%
|
Dividend
yield
|
|
—
|
|
|
—
|
|
|
Options
Available for Grant
|
|
Options
Outstanding
|
|
Weighted
Average Exercise Price Per Share
|
|
|||
Balances,
January 28, 2007
|
|
21,780,284
|
|
|
73,994,662
|
|
$
|
13.29
|
|
Granted
|
|
(4,833,408
|
)
|
|
4,833,408
|
|
|
28.79
|
|
Exercised
|
|
-
|
|
|
(3,900,292
|
)
|
|
7.75
|
|
Cancelled
|
|
739,335
|
|
|
(739,335
|
)
|
|
26.59
|
|
Balances,
April 29, 2007
|
|
17,686,211
|
|
|
74,188,443
|
|
$
|
14.47
|
|
Three
Months Ended
|
||||||
|
April
29,
2007
|
|
April 30,
2006
|
|
||
(In
thousands, except per share data)
|
||||||
Numerator:
|
|
|
|
|
||
Net
income
|
$
|
132,259
|
|
$
|
92,064
|
|
Denominator:
|
|
|
|
|
||
Denominator
for basic net income per share, weighted average shares
|
|
360,831
|
|
|
347,937
|
|
Effect
of dilutive securities:
|
|
|
|
|
||
Weighted
average effect of equity incentive plans
|
|
38,035
|
|
|
41,491
|
|
Denominator
for diluted net income per share, weighted average shares
|
|
398,866
|
|
|
389,428
|
|
|
|
|
|
|
|
|
Net
income per share:
|
|
|
|
|
|
|
Basic
net income per share
|
$
|
0.37
|
|
$
|
0.26
|
|
Diluted
net income per share
|
$
|
0.33
|
|
$
|
0.24
|
|
|
Fair
Market Value
|
|
Straight-Line
Amortization Period
|
|
||
|
(In
thousands)
|
|
(Years)
|
|
||
Property
and equipment
|
$
|
2,433
|
|
|
1-2
|
|
Trademarks
|
|
11,310
|
|
|
5
|
|
Goodwill
|
|
85,418
|
|
|
--
|
|
Total
|
$
|
99,161
|
|
|
|
|
|
ULi
|
|
Hybrid
Graphics
|
|
PortalPlayer
|
|
|||
|
(In
thousands)
|
|
|||||||
Fair
Market Values
|
|
|
|
|
|
|
|||
Cash
and cash equivalents
|
$
|
21,551
|
|
$
|
1,180
|
|
$
|
10,174
|
|
Marketable
Securities
|
|
-
|
|
|
-
|
|
|
176,492
|
|
Accounts
receivable
|
|
8,148
|
|
|
808
|
|
|
16,850
|
|
Inventories
|
|
4,896
|
|
|
-
|
|
|
2,326
|
|
Other
assets
|
|
935
|
|
|
73
|
|
|
12,798
|
|
Property
and equipment
|
|
1,010
|
|
|
134
|
|
|
19,991
|
|
In-process
research and development
|
|
-
|
|
|
602
|
|
|
13,400
|
|
Goodwill
|
|
31,051
|
|
|
27,906
|
|
|
104,468
|
|
Intangible
assets:
|
|
|
|
|
|
|
|
|
|
Existing technology
|
|
2,490
|
|
|
5,179
|
|
|
6,700
|
|
Backlog
|
|
-
|
|
|
-
|
|
|
2,200
|
|
Patents
|
|
-
|
|
|
-
|
|
|
600
|
|
Customer relationships
|
|
653
|
|
|
2,650
|
|
|
2,700
|
|
Trademark
|
|
-
|
|
|
482
|
|
|
-
|
|
Non-compete agreements
|
|
-
|
|
|
72
|
|
|
-
|
|
Total
assets acquired
|
|
70,734
|
|
|
39,086
|
|
|
368,699
|
|
Current
liabilities
|
|
(16,878
|
)
|
|
(1,373
|
)
|
|
(12,766
|
)
|
Acquisition
related costs
|
|
(781
|
)
|
|
(740
|
)
|
|
(8,043
|
)
|
Long-term
liabilities
|
|
-
|
|
|
(301
|
)
|
|
(46
|
)
|
Total
liabilities assumed
|
|
(17,659
|
)
|
|
(2,414
|
)
|
|
(20,855
|
)
|
Net
assets acquired
|
$
|
53,075
|
|
$
|
36,672
|
|
$
|
347,844
|
|
|
ULi
|
|
Hybrid
Graphics
|
|
PortalPlayer
|
|
|||
|
Straight-line
depreciation / amortization period
|
|
|||||||
Property
and equipment
|
|
4
-
49 months
|
|
|
1 -
36 months
|
|
|
3 -
60 months
|
|
Intangible
assets:
|
|
|
|
|
|
|
|
|
|
Existing
technology
|
|
3
years
|
|
|
3
years
|
|
|
3
years
|
|
Customer
relationships
|
|
3
years
|
|
|
3
years
|
|
|
1-3
years
|
|
Backlog
|
-
|
-
|
2
months
|
||||||
Patents
|
-
|
-
|
3
years
|
||||||
Trademark
|
|
-
|
|
|
3
years
|
|
|
-
|
|
Non-compete
agreements
|
|
-
|
|
|
3
years
|
|
|
-
|
|
|
|
April
29,
2007
|
|
January 28,
2007
|
|
||
|
|
(In
thousands)
|
|
||||
3dfx
|
|
$
|
75,326
|
|
$
|
75,326
|
|
MediaQ
|
|
|
35,342
|
|
|
35,342
|
|
ULi
|
|
|
31,051
|
|
|
31,051
|
|
Hybrid
Graphics
|
|
|
27,906
|
|
|
27,906
|
|
PortalPlayer
|
|
|
104,468
|
|
|
114,816
|
|
Other
|
|
|
16,984
|
|
|
16,984
|
|
Total
goodwill
|
|
$
|
291,077
|
|
$
|
301,425
|
|
April 29, 2007
|
January 28, 2007
|
|||||||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross Carrying
Amount
|
Accumulated
Amortization
|
Net Carrying
Amount
|
|||||||||||||||
|
|
(In
thousands)
|
|
|||||||||||||||||
Technology
licenses
|
|
$
|
49,368
|
|
$
|
(23,437
|
)
|
$
|
25,931
|
|
$
|
37,516
|
|
$
|
(20,480
|
)
|
$
|
17,036
|
|
|
Patents
|
|
|
34,539
|
|
|
(25,489
|
)
|
|
9,050
|
|
|
34,623
|
|
|
(24,569
|
)
|
|
10,054
|
|
|
Acquired
intellectual property
|
|
|
50,812
|
|
|
(34,899
|
)
|
|
15,913
|
|
|
50,212
|
|
|
(31,894
|
)
|
|
18,318
|
|
|
Trademarks
|
|
|
11,310
|
|
|
(11,310
|
)
|
|
-
|
|
|
11,310
|
|
|
(11,310
|
)
|
|
-
|
|
|
Other
|
|
|
1,494
|
|
|
(1,474
|
)
|
|
20
|
|
|
1,494
|
|
|
(1,391
|
)
|
|
103
|
|
|
Total
intangible assets
|
|
$
|
147,523
|
|
$
|
(96,609
|
)
|
$
|
50,914
|
|
$
|
135,155
|
|
$
|
(89,644
|
)
|
$
|
45,511
|
|
|
April
29,
2007
|
|
January 28,
2007
|
|
||
|
(In
thousands)
|
|
||||
Inventories:
|
|
|
|
|
|
|
Raw
materials
|
$
|
44,343
|
|
$
|
56,261
|
|
Work
in-process
|
|
121,930
|
|
|
111,058
|
|
Finished
goods
|
|
166,362
|
|
|
187,361
|
|
Total
inventories
|
$
|
332,635
|
|
$
|
354,680
|
|
|
April
29,
2007
|
|
January 28,
2007
|
|
||
|
(In
thousands)
|
|
||||
Accrued
Liabilities:
|
|
|
|
|
||
Accrued
customer programs
|
$
|
153,521
|
|
$
|
181,182
|
|
Deferred
revenue
|
|
4,386
|
|
|
1,180
|
|
Income
and other taxes payable
|
|
5,607
|
|
|
37,903
|
|
Accrued
payroll and related expenses
|
|
64,520
|
|
|
81,352
|
|
Deferred
rent
|
|
12,024
|
|
|
12,551
|
|
Accrued
legal settlement
|
|
30,600
|
|
|
30,600
|
|
Other
|
|
19,163
|
|
|
21,964
|
|
Total
accrued liabilities
|
$
|
289,821
|
|
$
|
366,732
|
|
|
April
29,
2007
|
|
January 28,
2007
|
|
||
|
(In
thousands)
|
|
||||
Other
Long-term Liabilities:
|
|
|
|
|
||
Asset
retirement obligation
|
$
|
6,411
|
|
$
|
6,362
|
|
Accrued
payroll taxes related to stock options
|
|
8,995
|
|
|
8,995
|
|
Income
taxes payable and deferred tax liability
|
|
51,929
|
|
|
-
|
|
Other
long-term liabilities
|
|
13,772
|
|
|
14,180
|
|
Total
other long-term liabilities
|
$
|
81,107
|
|
$
|
29,537
|
|
|
Three
Months Ended
|
|
||||
April 29,
2007
|
April 30,
2006
|
|||||
|
(In
thousands)
|
|
||||
Net
income
|
$
|
132,259
|
|
$
|
92,064
|
|
Net
change in unrealized (gains) / losses on available-for-sale securities,
net of tax
|
|
(79
|
)
|
|
(486
|
)
|
Reclassification
adjustments for net realized gains on available-for-sale securities
included in net income, net of tax
|
|
(73
|
)
|
|
(8
|
)
|
Total
comprehensive income
|
$
|
132,107
|
|
$
|
91,570
|
|
|
|
|
|
|
Description
|
Balance at
Beginning
of
Period
|
|
Additions (1)
|
|
Deductions (2)
|
|
Balance
at
End of
Period
(3)
|
|
||||
|
(In
thousands)
|
|
||||||||||
Three
months ended April 29, 2007
|
$
|
17,958
|
|
$
|
4,980
|
|
$
|
(3,875
|
)
|
$
|
19,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended April 30, 2006
|
$
|
10,239
|
|
$
|
11,775
|
|
$
|
(10,448
|
)
|
$
|
11,566
|
|
GPU
|
PSB
|
MCP
|
CPB
|
All
Other
|
Consolidated
|
||||||||||||||
|
|
(In
thousands)
|
|
||||||||||||||||
Three
Months Ended April 29, 2007:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
483,495
|
|
$
|
140,873
|
|
$
|
148,750
|
|
$
|
67,226
|
|
$
|
3,936
|
|
$
|
844,280
|
|
Depreciation
and amortization expense
|
|
$
|
8,285
|
|
$
|
2,187
|
|
$
|
6,593
|
|
$
|
6,095
|
|
$
|
9,162
|
|
$
|
32,322
|
|
Operating
income (loss)
|
|
$
|
124,417
|
|
$
|
69,307
|
|
$
|
7,839
|
$
|
10,168
|
|
$
|
(70,485
|
)
|
$
|
141,246
|
|
|
Three
Months Ended April 30, 2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
404,807
|
|
$
|
100,042
|
|
$
|
118,384
|
|
$
|
57,385
|
|
$
|
1,189
|
|
$
|
681,807
|
|
Depreciation
and amortization expense
|
|
$
|
6,870
|
|
$
|
1,828
|
|
$
|
4,278
|
|
$
|
3,786
|
|
$
|
8,109
|
|
$
|
24,871
|
|
Operating
income (loss)
|
|
$
|
87,239
|
|
$
|
45,064
|
|
$
|
2,983
|
$
|
17,165
|
|
$
|
(50,942)
|
$
|
101,509
|
|
|
April
29,
2007
|
|
April
30,
2006
|
|
||
(In
thousands)
|
||||||
Revenue:
|
|
|
|
|
||
United
States
|
$
|
101,866
|
|
$
|
77,372
|
|
Other
Americas
|
|
54,544
|
|
|
27,590
|
|
China
|
|
238,285
|
|
|
179,720
|
|
Taiwan
|
|
272,983
|
|
|
227,574
|
|
Other
Asia Pacific
|
|
95,052
|
|
|
111,218
|
|
Europe
|
|
81,550
|
|
|
58,333
|
|
Total
revenue
|
$
|
844,280
|
|
$
|
681,807
|
|
· |
our
GeForce product was the market leader in the Total Desktop, Standalone
Desktop and Standalone Notebook segments in the first quarter of
calendar
year 2007, based on the latest PC Graphics 2007 Report from Mercury
Research.
|
· |
in
April 2007, we launched several new DirectX10 GPUs, adding the GeForce
8600, GeForce 8500, and GeForce 8300 to our GeForce 8 series of GPUs,
which previously included the NVIDIA GeForce 8800 GTX and GeForce
8800
GTS.
|
· |
we
launched the NVIDIA Quadro FX 4600 and NVIDIA Quadro FX 5600 products,
which are professional solutions based on our G80 unified architecture.
|
· |
we
expanded our NVIDIA Quadro Plex family with the introduction of the
NVIDIA
Quadro Plex VCS IV, a new version of the NVIDIA Quadro Plex visual
computing system, or VCS, which provides enhanced performance for
a wide
range of high-performance, graphics-intensive styling and design,
oil and
gas, and scientific applications.
|
· |
our
NVIDIA nForce products held the leadership position for the AMD segment
based on the latest PC Processor and Chipsets report from Mercury
Research.
|
· |
we
shipped the GeForce 7050 motherboard GPU, which targets the lowest
cost
segments of the market.
|
· |
we
expanded the reach of Scalable Link Interface, or SLI, technology
into the
performance segments with the launch of the our NVIDIA nForce 650i
SLI MCP
product for Intel.
|
April
29,
2007
|
April
30,
2006
|
|||||
Revenue
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost
of revenue
|
|
55.0
|
|
|
57.7
|
|
Gross
profit
|
|
45.0
|
|
|
42.3
|
|
Operating
expenses:
|
|
|
|
|
|
|
Research
and development
|
|
18.8
|
|
|
18.1
|
|
Sales,
general and administrative
|
|
9.5
|
|
|
9.4
|
|
Total
operating expenses
|
|
28.3
|
|
|
27.5
|
|
Income
from operations
|
|
16.7
|
|
|
14.8
|
|
Interest
and other income, net
|
|
1.5
|
|
|
1.3
|
|
Income
before income tax expense
|
|
18.2
|
|
|
16.1
|
|
Income
tax expense
|
|
2.6
|
|
|
2.7
|
|
Cumulative
effect of change in accounting principle, net of tax
|
|
-
|
|
|
0.1
|
|
Net
income
|
|
15.6
|
%
|
|
13.5
|
%
|
· |
a
positive impact from our new GeForce 8 series
products;
|
· |
a
reduction of revenue from our MCP Business, which historically has
had a
gross margin that is lower than our overall gross margin;
|
· |
the
increase in NVIDIA Quadro workstation product revenue, which historically
has been higher than our overall gross margin;
and
|
· |
a
reduction of revenue from the sale of memory products, which historically
have been lower than our overall gross
margin
|
Three
Months Ended
|
Change
|
|||||||||
April
29, 2007
|
April
30, 2006
|
$
|
%
|
|||||||
|
(In
millions)
|
|||||||||
Research
and Development:
|
|
|
|
|
|
|
|
|||
Salaries
and benefits
|
$
|
87.7
|
$
|
68.0
|
$
|
19.7
|
29%
|
|||
Stock-based
compensation
|
|
22.4
|
|
14.4
|
|
8.0
|
56%
|
|||
Depreciation
and amortization
|
|
16.5
|
|
15.0
|
|
1.5
|
10%
|
|||
Computer
software and lab equipment
|
|
14.9
|
|
12.9
|
|
2.0
|
16%
|
|||
Facility
expense
|
|
11.6
|
|
8.1
|
|
3.5
|
43%
|
|||
New
product development
|
|
4.2
|
|
7.5
|
|
(3.3)
|
(44)%
|
|||
In-process
research and development
|
|
|
|
|
|
|||||
License
and development project costs
|
|
(2.4)
|
|
(5.8
|
)
|
|
3.4
|
(59)%
|
||
Other
|
|
3.4
|
|
3.1
|
|
0.3
|
10%
|
|||
Total
|
$
|
158.3
|
$
|
123.2
|
$
|
35.1
|
29%
|
|||
|
|
|
|
|
|
|
|
|||
Research
and development as a percentage of net revenue
|
|
19
|
%
|
|
18
|
%
|
|
|
|
Three
Months Ended
|
|
Change
|
|
||||||||
|
April
29, 2007
|
|
April
30, 2006
|
|
$
|
|
%
|
|
||||
|
(In
millions)
|
|
||||||||||
Sales,
General and Administrative:
|
|
|
|
|
|
|
|
|
||||
Salaries
and benefits
|
$
|
41.9
|
$
|
32.8
|
|
$
|
9.1
|
28%
|
||||
Advertising
and promotions
|
|
13.7
|
|
14.5
|
|
|
(0.8)
|
(6)%
|
||||
Stock-based
compensation
|
|
12.2
|
|
6.6
|
|
5.6
|
85%
|
|||||
Legal
and accounting fees
|
|
6.0
|
|
2.9
|
|
|
3.1
|
107%
|
||||
Facility
expense
|
|
2.8
|
|
4.0
|
|
|
(1.2)
|
(30)%
|
||||
Depreciation
and amortization
|
|
2.7
|
|
2.1
|
|
|
0.6
|
29%
|
||||
Other
|
|
1.3
|
|
1.1
|
|
|
0.2
|
18%
|
||||
Total
|
$
|
80.6
|
$
|
64.0
|
|
$
|
16.6
|
26%
|
||||
Sales,
general and administrative as a percentage of net revenue
|
|
10%
|
|
9
|
%
|
|
|
|
|
|
As
of April 29, 2007
|
|
As
of January 28, 2007
|
|
||
|
(In
millions)
|
|
||||
Cash
and cash equivalents
|
$
|
678.9
|
|
$
|
544.4
|
|
Marketable
securities
|
|
628.1
|
|
|
573.4
|
|
Cash,
cash equivalents, and marketable securities
|
$
|
1,307.0
|
|
$
|
1,117.8
|
|
Three
Months Ended
|
||||||
|
April
29, 2007
|
|
April
30, 2006
|
|
||
(In
millions)
|
||||||
Net
cash provided by operating activities
|
$
|
306.5
|
$
|
49.5
|
||
Net
cash used in investing activities
|
$
|
(91.1
|
)
|
$
|
(157.5
|
)
|
Net
cash provided by (used in) financing activities
|
$
|
(80.9
|
)
|
$
|
44.0
|
§ |
decreased
demand and market acceptance for our products and/or our customers’
products;
|
§ |
inability
to successfully develop and produce in volume production our
next-generation products;
|
§ |
competitive
pressures resulting in lower than expected average selling prices;
and
|
§ |
new
product announcements or product introductions by our competitors.
|
· |
the
mix of our products sold;
|
· |
average
selling prices;
|
· |
introduction
of new products;
|
· |
sales
discounts;
|
· |
unexpected
pricing actions by our competitors;
|
· |
the
cost of product components; and
|
· |
the
yield of wafers produced by the foundries that manufacture our
products.
|
· |
if
there were a sudden and significant decrease in demand for our
products;
|
· |
if
there were a higher incidence of inventory obsolescence because of
rapidly
changing technology and customer
requirements;
|
· |
if
we fail to estimate customer demand properly for our older products
as our
newer products are introduced; or
|
· |
if
our competition were to take unexpected competitive pricing
actions.
|
· |
anticipate
the features and functionality that customers and consumers will
demand;
|
· |
incorporate
those features and functionalities into products that meet the exacting
design requirements of OEMs, ODMs, and add-in board and motherboard
manufacturers;
|
· |
price
our products competitively; and
|
· |
introduce
products to the market within the limited design cycle for OEMs,
ODMs, and
add-in board and motherboard manufacturers.
|
· |
proper new
product definition;
|
· |
timely
completion and introduction of new product designs;
|
· |
the
ability of third-party manufacturers to effectively manufacture our
new
products in a timely manner;
|
· |
dependence
on third-party subcontractors for assembly, testing and packaging
of our
products and in meeting product delivery schedules and maintaining
product
quality;
|
· |
the
quality of new products;
|
· |
differentiation
of new products from those of our competitors;
|
· |
market
acceptance of our products and our customers' products; and
|
· |
availability
of adequate quantity and configurations of various types of memory
products.
|
· |
difficulty
in combining the technology, products, operations or workforce of
the
acquired business with our
business;
|
· |
difficulty
in operating in a new or multiple new locations;
|
· |
disruption
of our ongoing businesses;
|
· |
disruption
of the ongoing business of the company we invest in or
acquire;
|
· |
difficulty
in realizing the potential financial or strategic benefits of the
transaction;
|
· |
difficulty
in maintaining uniform standards, controls, procedures and
policies;
|
· |
disruption
of or delays in ongoing research and development
efforts;
|
· |
diversion
of capital and other resources;
|
· |
assumption
of liabilities;
|
· |
diversion
of resources and unanticipated expenses resulting from litigation
arising from potential or actual business acquisitions or
investments;
|
· |
difficulties
in entering into new markets in which we have limited or no experience
and
where competitors in such markets have stronger positions; and
|
· |
impairment
of relationships with employees and customers, or the loss of any
of our
key employees or customers of our target’s key employees or customers, as
a result of our acquisition or
investment.
|
· |
suppliers
of discrete MCPs that incorporate a combination of networking, audio,
communications and input/output, or I/O, functionality as part of
their
existing solutions, such as AMD, Broadcom, Silicon Integrated Systems
Corporation, or SIS, VIA Technologies, Inc., or VIA, and
Intel;
|
· |
suppliers
of GPUs, including MCPs that incorporate 3D graphics functionality
as part
of their existing solutions, such as AMD, Intel, Matrox Electronics
Systems Ltd., XGI Technology, Inc.,
SIS and VIA;
|
· |
suppliers
of GPUs or GPU intellectual property for handheld and embedded devices
that incorporate advanced graphics functionality as part of their
existing
solutions, such as AMD, Broadcom, Fujitsu Limited, Imagination
Technologies Ltd., ARM Holdings plc, Marvell Technology Group Ltd.,
or
Marvell, NEC Corporation, Qualcomm Incorporated, Renesas Technology,
Seiko-Epson, Texas Instruments Incorporated, and Toshiba America,
Inc.;
and
|
· |
suppliers
of application processors for handheld and embedded devices that
incorporate multimedia processing as part of their existing solutions
such
as Broadcom, Texas Instruments Inc., Qualcomm Incorporated, Marvell,
Freescale Semiconductor Inc., Samsung and ST
Microelectronics.
|
· |
international
economic and political conditions;
|
· |
unexpected
changes in, or impositions of, legislative or regulatory requirements;
|
· |
labor
issues in foreign countries;
|
· |
cultural
differences in the conduct of
business;
|
· |
inadequate
local infrastructure;
|
· |
delays
resulting from difficulty in obtaining export licenses for certain
technology, tariffs, quotas and other trade barriers and
restrictions;
|
· |
transportation
delays;
|
· |
longer
payment cycles;
|
· |
difficulty
in collecting accounts
receivable;
|
· |
fluctuations
in currency exchange rates;
|
· |
impact
of currency exchange rate fluctuations on the price of our products
to our
customers, or on the su |