NVIDIA Corp. (NVDA, Financial) filed Quarterly Report for the period ended 2010-05-02.
Nvidia Corp. has a market cap of $7.09 billion; its shares were traded at around $12.46 with a P/E ratio of 30.5 and P/S ratio of 2.1. NVDA is in the portfolios of PRIMECAP Management, Richard Aster Jr of Meridian Fund, John Hussman of Hussman Economtrics Advisors, Inc., Stanley Druckenmiller of Duquesne Capital Management, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates.
Our Board of Directors, or our Board, has authorized us, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through May 2013. Through May 2, 2010, we have repurchased an aggregate of 90.9 million shares under our stock repurchase program for a total cost of $1.46 billion. As of May 2, 2010, we are authorized, subject to certain specifications, to repurchase shares of our common stock up to an additional amount of $1.24 billion through May 2013.
Research and development expenses were $218.1 million and $301.8 million during the first quarters of fiscal years 2011 and 2010, respectively, a decrease of $83.7 million, or 28%. During the first quarter of fiscal year 2010, research and development expenses included stock-based compensation of $90.5 million related to the purchase of certain outstanding options that were tendered in March 2009. Compensation and benefits increased by $5.7 million primarily related to growth in headcount in departments related to research and development functions. Development expenses increased by $7.5 million primarily due to increased expenses related to engineering consumption, prototype materials, testing devices, and internal board requests. These increases were offset by a decrease of $2.3 million in depreciation and amortization due to fully depreciated assets and a decrease of $6.7 million in ongoing stock-based compensation expense resulting from the cancellation of stock options pursuant to the tender offer.
Sales, general and administrative expenses were $90.9 million and $118.9 million during the first quarters of fiscal years 2011 and 2010, respectively, a decrease of $28.0 million, or 24%. During the first quarter of fiscal year 2010, sales, general and administrative expenses included stock-based compensation of $38.3 million related to the purchase of certain outstanding options that were tendered in March 2009. Compensation and benefits increased by $9.1 million primarily due to headcount growth in departments related to sales, general, and administrative functions and incentive bonus expenses. Additionally, as a result of a partial resumption of spending in discretionary areas, there were increases in expenses related to computer software and equipment of $2.1 million, marketing of $1.7 million, and travel and entertainment of $1.4 million. These increases were offset by a decrease of $1.5 million in depreciation and amortization due to fully depreciated assets and a decrease of $1.9 million in ongoing stock-based compensation expense resulting from the cancellation of stock options pursuant to the tender offer.
Other income and expense primarily consists of realized gains and losses on the sale of marketable securities and foreign currency translation. Other (expense), net of other income was ($1.4) million in the first quarter of fiscal year 2011 and $0.8 million in the first quarter of fiscal year 2010. The fluctuation of $2.3 million was primarily driven by realized gains from investments in the first quarter of fiscal year 2010.
As of May 2, 2010, we had $1.76 billion in cash, cash equivalents and marketable securities, an increase of $36.7 million from $1.73 billion at the end of fiscal year 2010. Our portfolio of cash equivalents and marketable securities is managed by several financial institutions. Our investment policy requires the purchase of top-tier investment grade securities, the diversification of asset type and includes certain limits on our portfolio duration.
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Nvidia Corp. has a market cap of $7.09 billion; its shares were traded at around $12.46 with a P/E ratio of 30.5 and P/S ratio of 2.1. NVDA is in the portfolios of PRIMECAP Management, Richard Aster Jr of Meridian Fund, John Hussman of Hussman Economtrics Advisors, Inc., Stanley Druckenmiller of Duquesne Capital Management, LLC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Chuck Royce of Royce& Associates, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors, Bruce Kovner of Caxton Associates.
Highlight of Business Operations:
As of May 2, 2010, our Condensed Consolidated Balance Sheet included an accrued liability to cover the estimated remaining customer warranty, repair, return, replacement and other costs arising from a weak die/packaging material set in certain versions of our previous generation MCP and GPU products used in notebook configurations. During fiscal years 2010 and 2009, we recorded a warranty charge against cost of revenue of $360.4 million for related estimated costs, offset by reimbursements from insurance carriers of $75.3 million. The weak die/packaging material combination is not used in any of our products that are currently in production.Our Board of Directors, or our Board, has authorized us, subject to certain specifications, to repurchase shares of our common stock up to an aggregate maximum amount of $2.7 billion through May 2013. Through May 2, 2010, we have repurchased an aggregate of 90.9 million shares under our stock repurchase program for a total cost of $1.46 billion. As of May 2, 2010, we are authorized, subject to certain specifications, to repurchase shares of our common stock up to an additional amount of $1.24 billion through May 2013.
Research and development expenses were $218.1 million and $301.8 million during the first quarters of fiscal years 2011 and 2010, respectively, a decrease of $83.7 million, or 28%. During the first quarter of fiscal year 2010, research and development expenses included stock-based compensation of $90.5 million related to the purchase of certain outstanding options that were tendered in March 2009. Compensation and benefits increased by $5.7 million primarily related to growth in headcount in departments related to research and development functions. Development expenses increased by $7.5 million primarily due to increased expenses related to engineering consumption, prototype materials, testing devices, and internal board requests. These increases were offset by a decrease of $2.3 million in depreciation and amortization due to fully depreciated assets and a decrease of $6.7 million in ongoing stock-based compensation expense resulting from the cancellation of stock options pursuant to the tender offer.
Sales, general and administrative expenses were $90.9 million and $118.9 million during the first quarters of fiscal years 2011 and 2010, respectively, a decrease of $28.0 million, or 24%. During the first quarter of fiscal year 2010, sales, general and administrative expenses included stock-based compensation of $38.3 million related to the purchase of certain outstanding options that were tendered in March 2009. Compensation and benefits increased by $9.1 million primarily due to headcount growth in departments related to sales, general, and administrative functions and incentive bonus expenses. Additionally, as a result of a partial resumption of spending in discretionary areas, there were increases in expenses related to computer software and equipment of $2.1 million, marketing of $1.7 million, and travel and entertainment of $1.4 million. These increases were offset by a decrease of $1.5 million in depreciation and amortization due to fully depreciated assets and a decrease of $1.9 million in ongoing stock-based compensation expense resulting from the cancellation of stock options pursuant to the tender offer.
Other income and expense primarily consists of realized gains and losses on the sale of marketable securities and foreign currency translation. Other (expense), net of other income was ($1.4) million in the first quarter of fiscal year 2011 and $0.8 million in the first quarter of fiscal year 2010. The fluctuation of $2.3 million was primarily driven by realized gains from investments in the first quarter of fiscal year 2010.
As of May 2, 2010, we had $1.76 billion in cash, cash equivalents and marketable securities, an increase of $36.7 million from $1.73 billion at the end of fiscal year 2010. Our portfolio of cash equivalents and marketable securities is managed by several financial institutions. Our investment policy requires the purchase of top-tier investment grade securities, the diversification of asset type and includes certain limits on our portfolio duration.
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