NVIDIA Reports Financial Results for First Quarter Fiscal Year 2013

CFO Commentary
Commentary on the quarter by Karen Burns, NVIDIA interim chief financial officer, is available at www.nvidia.com/ir.

Conference Call and webcast Information
NVIDIA will conduct a conference call with analysts and investors to discuss its first quarter fiscal 2013 financial results and current financial prospects today at 5:00 a.m. Pacific Time (8:00 a.m. Eastern Time). To listen to the call, please dial (706) 679 2572. A live webcast (listen-only mode) of the conference call will be accessible at the NVIDIA investor relations web site www.nvidia.com/ir and at www.streetevents.com. The webcast will be recorded and available for replay until the company's conference call to discuss its financial results for its second quarter fiscal 2013.

Non-GAAP Measures
To supplement NVIDIA's Condensed Consolidated Statements of Operations and Condensed Consolidated Balance Sheets presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income tax expense, non-GAAP net income, and non-GAAP net income, or earnings, per share. In order for NVIDIA's investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. These reconciliations adjust the related GAAP financial measures to exclude a non-recurring charge related to a legal settlement, stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a non-recurring contribution expense, and the associated tax impact of these items, where applicable. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user's overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and our non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA
NVIDIA (NASDAQ: NVDA) awakened the world to computer graphics when it invented the GPU in 1999. Today, its processors power a broad range of products from smartphones to supercomputers. NVIDIA's mobile processors are used in cell phones, tablets and auto infotainment systems. PC gamers rely on GPUs to enjoy spectacularly immersive worlds. Professionals use them to create 3D graphics and visual effects in movies and to design everything from golf clubs to jumbo jets. And researchers utilize GPUs to advance the frontiers of science with high performance computing. The company has more than 4,500 patents issued, allowed or filed, including ones covering ideas essential to modern computing. For more information, see www.nvidia.com.

Certain statements in this press release including, but not limited to statements as to: the impact of Kepler GPUs on our business; reviews of our newly launched desktop products; the growth of Tegra, driven by great mobile device wins and the upcoming Windows on ARM launch; important news at our GPU Technology Conference; new ways that the GPU will enhance mobile and cloud computing; the company's financial outlook for the second quarter of fiscal 2013; the company's tax rate for the second quarter and fiscal year 2013; and the effects of the company's patents on modern computing are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-K for the fiscal year ended January 29, 2012. Copies of reports filed with the SEC are posted on the company's website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2012 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, GeForce, Kepler, and Tegra are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

                                                                            
                                                                            
                             NVIDIA CORPORATION                             
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME                
                    (In thousands, except per share data)                   
                                 (Unaudited)                                
                                                                            
                                                      Three Months Ended    
                                                 ---------------------------
                                                   April 29,       May  1,      
                                                                                                            2012                    2011        
                                                                                                  -------------  -------------
                                                                                                                                                        
Revenue                                                                                    $          924,877  $          962,039
Cost  of  revenue                                                                                461,513              477,536
                                                                                                  -------------  -------------
Gross  profit                                                                                      463,364              484,503
Operating  expenses                                                                                                                    
    Research  and  development                                                          283,902              231,524
    Sales,  general  and  administrative                                        106,636                98,117
                                                                                                  -------------  -------------
        Total  operating  expenses                                                      390,538              329,641
                                                                                                  -------------  -------------
Operating  income                                                                                72,826              154,862
Interest  and  other  income,  net                                                      4,269                  1,623
                                                                                                  -------------  -------------
Income  before  income  tax  expense                                                77,095              156,485
Income  tax  expense                                                                            16,658                21,266
                                                                                                  -------------  -------------
Net  income                                                                              $            60,437  $          135,219
                                                                                                  =============  =============
                                                                                                                                                        
Basic  net  income  per  share                                              $                0.10  $                0.23
                                                                                                  =============  =============
Diluted  net  income  per  share                                          $                0.10  $                0.22
                                                                                                  =============  =============
                                                                                                                                                        
Shares  used  in  basic  per  share  computation                          615,780              594,802
Shares  used  in  diluted  per  share  computation                      623,786              613,474
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          NVIDIA  CORPORATION                                                          
                                        CONDENSED  CONSOLIDATED  BALANCE  SHEETS                                      
                                                              (In  thousands)                                                              
                                                                  (Unaudited)                                                                
                                                                                                                                                        
                                                                                                      April  29,        January  29,  
                                                                                                            2012                    2012        
                                                                                                  -------------  -------------
ASSETS                                                                                                                                            
                                                                                                                                                        
Current  assets:                                                                                                                          
    Cash,  cash  equivalents  and  marketable                                                                          
      securities                                                                        $      3,130,812  $      3,129,576
    Accounts  receivable,  net                                                          411,155              336,143
    Inventories                                                                                    342,707              340,297
    Prepaid  expenses  and  other  current  assets                        147,442                99,342
                                                                                                  -------------  -------------
        Total  current  assets                                                          4,032,116          3,905,358
                                                                                                                                                        
Property  and  equipment,  net                                                        553,541              560,072
Goodwill                                                                                              641,030              641,030
Intangible  assets,  net                                                                  363,395              326,136
Other  assets                                                                                      118,085              120,332
                                                                                                  -------------  -------------
        Total  assets                                                                  $      5,708,167  $      5,552,928
                                                                                                  =============  =============
                                                                                                                                                        
LIABILITIES  AND  STOCKHOLDERS'  EQUITY                                                                                
                                                                                                                                                        
Current  liabilities:                                                                                                                
    Accounts  payable                                                              $          395,578  $          335,072
    Accrued  liabilities  and  other  current                                                                          
      liabilities                                                                                  551,826              594,886
                                                                                                  -------------  -------------
        Total  current  liabilities                                                    947,404              929,958
                                                                                                                                                        
Other  long-term  liabilities                                                        452,505              455,807
Capital  lease  obligations,  long  term                                        20,830                21,439
                                                                                                                                                        
Stockholders'  equity                                                                  4,287,428          4,145,724
                                                                                                  -------------  -------------
                                                                                                                                                        
        Total  liabilities  and  stockholders'  equity      $      5,708,167  $      5,552,928
                                                                                                  =============  =============
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          NVIDIA  CORPORATION                                                          
                      RECONCILIATION  OF  GAAP  TO  NON-GAAP  FINANCIAL  MEASURES                        
                                      (In  thousands,  except  per  share  data)                                        
                                                                (Unaudited)                                                                  
                                                                                                                                                        
                                                                                                Three  Months  Ended                    
                                                                            -------------------------------------  
                                                                              April  29,      January  29,          May  1,      
                                                                                    2012                  2012                  2011        
                                                                            -----------    -----------    -----------  
                                                                                                                                                        
GAAP  gross  profit                                          $      463,364    $      490,013    $      484,503  
    GAAP  gross  margin                                                    50.1%                51.4%                50.4%
        Stock-based  compensation  expense                                                                                
          included  in  cost  of  revenue  (A)                2,526                3,048                2,477  
        Legal  settlement  (B)                                                -                7,300                        -  
                                                                            -----------    -----------    -----------  
Non-GAAP  gross  profit                                  $      465,890    $      500,361    $      486,980  
                                                                            ===========    ===========    ===========  
    Non-GAAP  gross  margin                                            50.4%                52.5%                50.6%
                                                                                                                                                        
GAAP  operating  expenses                              $      390,538    $      367,696    $      329,641  
        Stock-based  compensation  expense                                                                                
          included  in  operating  expense                                                                                    
          (A)                                                                    (33,043)          (32,388)          (29,262)
        Amortization  of  acquisition-                                                                                        
          related  intangible  assets                          (4,342)            (5,041)            (2,296)
        Other  acquisition-related  costs                                                                                  
          (C)                                                                      (5,171)            (5,052)            (1,255)
                                                                            -----------    -----------    -----------  
Non-GAAP  operating  expenses                      $      347,982    $      325,215    $      296,828  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
GAAP  net  income                                              $        60,437    $      116,025    $      135,219  
        Total  pre-tax  impact  of  non-GAAP                                                                                
          adjustments                                                      45,082              52,829              35,290  
        Income  tax  impact  of  non-GAAP                                                                                      
          adjustments                                                      (7,989)          (10,718)            (4,796)
                                                                            -----------    -----------    -----------  
Non-GAAP  net  income                                      $        97,530    $      158,136    $      165,713  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Diluted  net  income  per  share                                                                                                
        GAAP                                                            $            0.10    $            0.19    $            0.22  
                                                                            ===========    ===========    ===========  
        Non-GAAP                                                    $            0.16    $            0.26    $            0.27  
                                                                            ===========    ===========    ===========  
                                                                                                                                                        
Shares  used  in  diluted  net  income  per                                                                              
  share  computation                                                623,786            618,599            613,474  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
(A)  Excludes  stock-based  compensation                                                                              
as  follows:                                                                          Three  Months  Ended                    
                                                                            -------------------------------------  
                                                                              April  29,      January  29,          May  1,      
                                                                                    2012                  2012                  2011        
                                                                            -----------    -----------    -----------  
          Cost  of  revenue                                    $          2,526    $          3,048    $          2,477  
          Research  and  development                  $        21,207    $        20,908    $        18,589  
          Sales,  general  and                                                                                                          
          administrative                                      $        11,836    $        11,480    $        10,673  
                                                                                                                                                        
(B)  On  February  7,  2012,  the  Company  and  Rambus  entered  into  a  licensing        
agreement  and  both  parties  also  agreed  to  settle  all  outstanding  legal            
disputes.  For  accounting  purposes,  a  charge  of  $7.3  million  associated  with  
the  fair  value  prescribed  to  the  settlement  portion  was  recognized  for  the    
year  ended  January  29,  2012.                                                                                                
                                                                                                                                                        
(C)  Other  acquisition-related  costs  are  comprised  of  transaction  costs,          
compensation  charges  and  restructuring  costs  related  to  the  acquisition  of    
Icera,  Inc.  that  was  completed  on  June  10,  2011.                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                          NVIDIA  CORPORATION                                                          
                                  RECONCILIATION  OF  GAAP  TO  NON-GAAP  OUTLOOK                                  
                                                                                                                                                        
                                                                                                                    Q2  FY2013  Outlook  
                                                                                                                    -----------------  
                                                                                                                                                        
GAAP  gross  margin                                                                                                            51.2%
    Impact  of  stock-based  compensation  (A)                                                                0.3%
                                                                                                                    -----------------  
Non-GAAP  gross  margin                                                                                                    51.5%
                                                                                                                    =================  
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                    Q2  FY2013  Outlook  
                                                                                                                    -----------------  
                                                                                                                        (In  millions)      
                                                                                                                                                        
GAAP  operating  expenses                                                                      $                      418.0  
    Stock-based  compensation  expense  included  in  operating                                        
      expense                                                                                                                        (29.8)
    Amortization  of  acquisition-related  intangible  assets                                (4.5)
    Other  acquisition-related  costs  (B)                                                                    (4.7)
    Contribution  expense                                                                                                (25.0)
                                                                                                                    -----------------  
Non-GAAP  operating  expenses                                                              $                      354.0  
                                                                                                                    =================  
                                                                                                                                                        
(A)  Represents  $2.6  million  of  stock-based  compensation  expense  included  in  
cost  of  revenue.                                                                                                                        
                                                                                                                                                        
(B)  Other  acquisition  related  costs  are  comprised  of  transaction  costs,          
compensation  charges  and  restructuring  costs  related  to  the  acquisition  of    
Icera,  Inc.  that  was  completed  on  June  10,  2011.                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
                                                                                                                                                        
 




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