NVIDIA Corporation (NVDA)
F3Q10 Earnings Call
November 5, 2009 5:00 pm ET
Michael Hara - Investor Relations
David White - Chief Financial Officer
Jen-Hsun Huang - President, Chief Executive Officer and Director
Doug Freedman - Broadpoint Amtech
Ross Seymore - Deutsche Bank
James Schneider - Goldman Sachs
Uche Orji - UBS
Glen Yeung - Citigroup
Hans Mosesmann - Raymond James
Daniel Berenbaum - Auriga USA
David Wu - Global Crown Capital
Joanne Feeney - FTN Capital
Tim Luke - Barclays Capital
Analyst for Craig Berger - Friedman, Billings, Ramsay
Analyst for Raj Seth - Cowen & Company
Previous Statements by NVDA
» NVIDIA F2Q10 (Qtr End 7/26/09) Earnings Call Transcript
» NVIDIA F1Q10 (Qtr End 4/26/09) Earnings Call Transcript
» NVIDIA Corporation F4Q09 (Qtr End 1/25/2009) Earnings Call Transcript
Thank you. Good afternoon and welcome to NVIDIA's conference call for the third quarter of fiscal 2010. With me on the call today from NVIDIA are Jen-Hsun Huang, President and Chief Executive Officer; and David White, Chief Financial Officer.
After our prepared remarks, we will open the call up to a question-and-answer session. Please limit yourself to one initial question with one follow-up.
Before we begin, I would like to remind you today’s call is being webcast live on NVIDIA's investor relations website and is also being recorded. A replay of the conference call will be available via telephone until November 12, 2009 and the webcast will be available for replay until our conference call to discuss our financial results for our fourth quarter of fiscal 2010.
The content of today’s conference call is NVIDIA's property and cannot be reproduced or transcribed without our prior written consent.
During the course of this call, we may make forward-looking statements based on current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties and our actual results may differ materially. For a discussion of factors that could affect our future results and business, please refer to the disclosure in today’s earnings release, on our Form 10-Q for the fiscal period ended July 26, 2009, and the reports on Form 8-K filed with the Securities and Exchange Commission. All of our looking statements are made as of today, November 5, 2009, based on information available to us today and except as required by law, we assume no obligation to update any such statements.
Unless otherwise noted, all references to research market and market share numbers throughout the call come from Mercury Research or John Petty Research.
During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our financial release, which is posted on our website.
We are making a few changes to our format moving forward. As you may have noted, we posted David’s financial overview on our website prior to today’s call. In addition, I will be providing the corporate overview and Jen-Hsun will be available for the question and answer portion.
With that, let’s begin.
We continued to make good progress in the third quarter. GPU demand continued to steadily increase, driven by a health market environment and new applications that require GPUs. Our unprecedented investments in parallel computing are creating change and opportunity and are the foundation of our growth in the coming year. We believe we are in the midst of a giant leap in computer graphics. The GPU continues to advance the most parallel of applications, 3D graphics, and it is now poised to revolutionize a wide range of industries by making parallel computing mainstream.
Consumers needs have changed and the GPU is key to meeting them. The Internet is today’s killer app and social media, video, and digital photography have seen massive growth.
These are highly parallel tasks that are much better suited to a GPU than a CPU. From handhelds to data centers, today’s most important computing problems are parallel.
For handheld devices, parallel computing on GPUs delivers rich media and enables an uncompromised Internet experienced. The first TEGRA devices, Microsoft Zune HD and the Samsung M1, started shipping in Q3.
PC gamers are aggressive adopters of new technology. Just as SLI permanently changed the meaning of high definition gaming, PhysX and 3D stereo are bringing an even more profound change, making games surprising and magical again.
Because of the extraordinary impact PhysX has on game playing experience, it has the potential to be a defining feature of gaming PCs, just as SLI is today.
Parallel computing also provides 3D stereo for movies and photos and remarkable speed ups for photo and video editing. In the future, even PCs that already have a graphics controller integrated with the CPU will require a GPU for compute.
Professional users will greatly benefit from the combination of computational graphics and parallel computing. Even for pure graphics applications, parallel computing is being used to make images more realistic by simulating the real world from PhysX to photons. Movie production houses that worked on Terminator Salvation and Star Trek ran color grading and image processing 20 times faster using parallel computing on NVIDIA GPUs.
Our leadership position and innovative software, parallel programming language, development environment, libraries for PhysX, ray tracing, scene management, and many other aspects of a visual computing solution will not only solidify our market share, it will expand the size of the business.
Data centers are constrained by space, power, and cooling so the improvements from parallel computing and performance per cubic foot are game changing. TESLA development clusters are at 33 of the top 500 super computing sites. Oak Ridge National Labs announced in September that it plans to build the world’s most powerful super computer with our GPUs.