NVIDIA Corporation today reported financial results for the fourth quarter of fiscal 2008 and the fiscal year ended January 27, 2008. For the fourth quarter of fiscal 2008, revenue increased to a record $1.20 billion, compared to $878.9 million for the fourth quarter of fiscal 2007, an increase of 37 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the fourth quarter of fiscal 2008 was $257.0 million, or $0.42 per diluted share, compared to net income of $163.5 million, or $0.27 per diluted share, for the fourth quarter of fiscal 2007, a net income increase of 57 percent.

Non-GAAP net income for the fourth quarter of fiscal 2008, which excludes stock-based compensation charges, a charge for in-process research and development related to an acquisition closed during the quarter, and the associated tax impact, was $292.6 million, or $0.49 per diluted share.

Annual revenue for the fiscal year ended January 27, 2008 was a record $4.10 billion, compared to revenue of $3.07 billion for the fiscal year ended January 28, 2007, an increase of 34 percent. GAAP net income for the fiscal year ended January 27, 2008 was $797.6 million, or $1.31 per diluted share, compared to GAAP net income of $448.8 million, or $0.76 per diluted share, for the fiscal year ended January 28, 2007, a net income increase of 78 percent.

Non-GAAP net income for the fiscal year ended January 27, 2008, which excludes stock-based compensation charges, a charge for in-process research and development related to an acquisition closed during the year, and the associated tax impact, was $919.3 million, or $1.56 per diluted share.

"Fiscal 2008 was another outstanding and record year for us. Strong demand for GPUs in all market segments drove our growth. Relative to Q4 one year ago, our discrete GPU business grew 80%. Our growth reflects the ever-increasing use of rich graphics in applications from Google Earth to Apple iTunes to online virtual worlds," said Jen-Hsun Huang, president and CEO of NVIDIA.

Mr. Huang continued: "This is the era of visual computing. The richness of the graphics is increasingly central to our computing experience. And at the core of that experience is the GPU, the processor that defines the modern PC."

Fourth Quarter, Fiscal Year 2008, and Recent Highlights:

• Fourth Quarter revenue grew 37 percent year-over-year to a record $1.20 billion.
• Annual revenue increased 34 percent year-over-year to a record $4.10 billion.
• GAAP annual net income increased 78 percent year-over-year to a record $797.6 million.
• GAAP annual gross margin reached a Company high of 45.6 percent, a year-over-year increase of 320 basis points.
• We launched multiple industry-defining products and initiatives:
  
  - GeForce 8800 graphics processing family, including the highly-acclaimed 8800GT < li>GeForce 7000 mGPU - the first single-chip motherboard GPU for Intel systems
  - Tesla computing system - the high performance computing industry's first C-programmable GPU
  - Hybrid SLI technology - the first hybrid technology for PC platforms
  - CUDA technology - the first C-compiler for the GPU
  - PureVideo HD technology - the first video decode and post processing technology for Blu-ray and HD DVD
• NVIDIA held #1 segment share in desktop and notebook GPU (Mercury Research PC Graphics 2008 Market Strategy and Forecast Report).
• NVIDIA held #1 segment share in workstation solutions (Jon Peddie Research Q3'07 Workstations and Professional Graphics Report).
• NVIDIA was named Most Respected Public Company by members of the Fabless Semiconductor Association for the second consecutive year.
• NVIDIA was named Forbes Company of the Year.
• We acquired Mental Images, the industry's leading photorealistic rendering technology provider. Mental Image's Mental Ray is the most pervasive ray tracing renderer in industry.
• In February, we announced and completed the acquisition of AGEIA, the industry leader in gaming physics technology.