NVIDIA Corporation (NVDA)
F3Q2011 Earnings Call Transcript
November 11, 2010 5:00 pm ET
Michael Hara – SVP, IR & Communications
David White – EVP & CFO
Jen-Hsun Huang – Co-Founder, President & CEO
Mike McConnell – Pacific Crest Securities
Ambrish Srivastava – BMO
Tim Luke – Barclays Capital
Patrick Wang – Wedbush Morgan
Shawn Webster – Macquarie
James Schneider – Goldman Sachs
Arnab Chanda – Roth Capital
Harlan Sur – JPMorgan
Glen Yeung – Citi
Craig Berger – FBR Capital Management
Dan Morris – Oppenheimer & Company
Ross Seymore – Deutsche Bank
Raji Gill – Needham & Company
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Thanks, Will. Good afternoon and welcome to NVIDIA conference call for the third quarter fiscal 2011. With me on the call today from NVIDIA are Jen-Hsun Huang, President, Chief Executive Officer; and David L. White, Chief Financial Officer.
After our prepared remarks we will open the call up to question-and-answer session. Please limit yourself to one initial question with one follow-up question.
Before we begin, I would like to remind you that today’s call is being webcast live on NVIDIA’s Investor Relations Web site and is also being recorded. A replay of the conference call will be available via telephone until November 18, 2010, and the webcast will be available for replay until our conference call to discuss our financial results for the fourth quarter of fiscal 2011. The content of today’s conference call is NVIDIA’s property. It 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 financial results and business, please refer to the disclosure in today’s earnings release, our Form 10-Q for the fiscal period ended August 1, 2010, and the reports we may file from time-to-time on Form 8-K filed with the Securities and Exchange Commission.
All of our statements are made as of today, November 11, 2010, based on information available to us as of today and except as required by law, we assume no obligation to update any such statements. Unless otherwise noted, all references to market research and market-share numbers throughout the call come from Mercury Research or Jon Peddie Research. With that, let’s begin.
We have restored our speed of execution. Since March, we’ve got seven new GPUs all of which with the production with First Silicon. The Fermi architecture is now in every segment of our desktop, notebook and workstation product lines.
We are seeing solid gains in our core GeForce and Quadro businesses and we are recapturing our share. In the GeForce business, we have extended our DX11 technology leadership and the results show. Our desktop standalone GPU share grew from 55% in Q2 to 59% in Q3.
For budget conscious gamers, we introduced the GeForce GTS 450, which is designed to deliver the most advanced GPU gaming experience to the important $99 add-in card segment.
According to the latest data from Steam, a broad survey of hardware used by PC gamers today, 56% of gamers play at resolutions between 1600x1050 and 1280x1024, resolutions at which the GTS 450 excels.
GTS 450 follows one of our most successful GPUs, the GTS 250. In October, we launched the GeForce GT 430. It is designed to deliver unparallel experiences in photo and video editing, Blu-ray 3D and the next generation of GPU-accelerated web browsers and web content. The GT 430 is targeted at $79 add-in card segment and is the perfect first upgrade from integrated graphics.
In this week, we launched the GeForce GTX 580, the world’s fastest DX11 GPU. The GTX 580 is based on the second generation of Fermi architecture, engineered from the transition level up in just seven short months and raises the bar as the fast and now quite a GPU in its class.
The combination of an innovative vapor chamber thermal solution and new and new architectural enhancements increase power efficiency and performance over previous generations.
The GTX 580 delivers up to 35% more performance per watt and raw performance that is up to 30% greater than the GTX 480 that replaces. For DX11 games, the GTX 580 is up to 160% faster than the closest competitor products. For previous DX9 and DX10 games, the GTX 580 is faster by up to 62%.
In notebooks we launched during the quarter a complete family of GeForce 400M GPUs with Optimus technology. Lenovo and Dell have already shipped and more OEMs will follow.
With our new Fermi notebook GPUs we have significantly increased our design win share. Starting in Q4 with the Sandy Bridge ramp, we expect to take our notebook share to our all-time highs. In our Quadro professional business, the uptake of the Fermi architecture continues to be strong.
In October, we launched the Quadro 2000 mid-range GPU and the Quadro 6000 entry-level GPU. These new professional graphic solutions put the computational and visualization benefits of the breakthrough Fermi architecture within the reach of all engineers, designer and animators.
The Quadro 2000 delivers 1.5 times the geometry product performance of its predecessor for dramatically higher performance across leading CAD and DCC applications such as SolidWorks and Autodesk 3ds Max.
The Quadro 600 is an economical half height solution that features the industry best performance per watt for applications such as Autodesk AutoCAD 2011. As OEMs and software ISPs complete their qualifications on these latest Quadros, we believe we are attracting the historical peak revenue even in less robust economic conditions.