"We are delighted to deliver another record quarter," stated Jen-Hsun Huang, president and CEO of NVIDIA. "Our growth was driven by strong performance from numerous product groups desktop GPU, notebook GPU, MCP, professional solutions and handheld GPU. As the industry continues to shift its focus to the multimedia experience for consumers, the GPU is becoming increasingly important in a broad range of computing and consumer devices. We are excited about our growth opportunities ahead."
NVIDIA also announced today that the Audit Committee of the Board of Directors is conducting a voluntary review of the Companys stock option practices covering the time from the Companys initial public offering in 1999 through the current fiscal year. The Audit Committee is conducting this review with the assistance of outside legal counsel. The Company has voluntarily contacted the Securities and Exchange Commission staff to inform them about the ongoing review.
Although the review is ongoing, the Audit Committee has reached a preliminary conclusion that incorrect measurement dates were used for financial accounting purposes for stock option grants in certain prior periods. As a result, NVIDIA may record additional non-cash stock-based compensation expense related to stock option grants. Any additional non-cash stock-based compensation expense recorded will not affect the Companys cash position or reported revenue for the recently completed quarter or any previous periods.
NVIDIA does not expect to be in a position to announce additional financial results for the second quarter until the Audit Committee has completed its review. At this time, the Company does not expect to be in a position to file its Form 10-Q for the second fiscal quarter by the September 8, 2006 filing deadline or the permitted extension to September 13, 2006.