Nvidia's profits jump 63%, confirms stock option issues
Santa Clara (CA) - Nvidia reported "one of its best quarters" in the firm's history. Revenues surged 41% year-over-year to $820.6 million in the company's fiscal Q3 2007, ended October 29. Net income increased 63% in the same time frame, from $65.2 million to $106.5 million. The result was also a substantially improvement sequentially: For fiscal Q2 of this year, Nvidia reported revenues of $687.5 million and profits of $86.8 million.
Revenue for the nine months of the current fiscal year was $2.19 billion, compared to revenue of $1.74 billion for the nine months ended October 30, 2005. Nvidia said that a review of its stock option practices, which began in June of this year, has been completed and is now "working (...) to finalize the financial impact of using incorrect measurement dates." Nvidia confirmed that there were "instances of the use of incorrect measurement dates for certain option grants" in the time frame between 1999 and 2006, which potentially could impact the numbers in the current Q3 statement.
Nvidia said that it will publish restated balance sheets as soon as available and mentioned that the stock option practices under review could lead to "potential claims and proceedings relating to such matters, including litigation or action by the Securities and Exchange Commission and/or other regulatory agencies."
Nvidia recently announced a new graphics card generation, the Geforce 8800 series as well as a new chipset, the Nforce 680 series.