Delaware
|
94-3177549
|
(State
or Other Jurisdiction of
|
(I.R.S.
Employer
|
Incorporation
or Organization)
|
Identification
No.)
|
|
|
Page
|
|
PART
I
|
|
Item
1.
|
Business
|
1
|
Item
1A.
|
Risk
Factors
|
12
|
Item
1B.
|
Unresolved
Staff Comments
|
27
|
Item
2.
|
Properties
|
27
|
Item
3.
|
Legal
Proceedings
|
28
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
29
|
|
|
|
|
PART
II
|
|
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
29
|
Item
6.
|
Selected
Financial Data
|
31
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
33
|
Item
7A.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
50
|
Item
8.
|
Consolidated
Financial Statements and Supplementary Data
|
51
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
51
|
Item
9A.
|
Controls
and Procedures
|
51
|
Item
9B.
|
Other
Information
|
52
|
|
|
|
|
PART
III
|
|
Item
10.
|
Directors
and Executive Officers of the Registrant
|
52
|
Item
11.
|
Executive
Compensation
|
53
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
53
|
Item
13.
|
Certain
Relationships and Related Transactions
|
53
|
Item
14.
|
Principal
Accounting Fees and Services
|
53
|
|
|
|
|
PART
IV
|
|
Item
15.
|
Exhibits,
Financial Statement Schedules
|
54
|
Signatures
|
|
95
|
· |
suppliers
of discrete MCPs that incorporate a combination of networking, audio,
communications and input/output, or I/O, functionality as part of
their
existing solutions, such as ATI Technologies, Inc., or ATI, Broadcom
Corporation, or Broadcom, and
Intel;
|
· |
suppliers
of GPUs, including MCPs that incorporate 3D graphics functionality
as part
of their existing solutions, such as ATI, Intel, Matrox Electronics
Systems Ltd., Silicon Integrated Systems, Inc., VIA Technologies,
Inc.,
and XGI Technology Inc.; and
|
· |
suppliers
of GPUs or GPU intellectual property for handheld and embedded devices
that incorporate advanced graphics functionality as part of their
existing
solutions, such as ATI, Bitboys, Broadcom, Fujitsu Limited, Imagination
Technologies Ltd., NEC Corporation, Qualcomm Incorporated, Renesas
Technology Corp., Seiko-Epson, Texas Instruments Incorporated, and
Toshiba
America, Inc.
|
Name
|
Age
|
Position
|
||
Jen-Hsun
Huang
|
42
|
President,
Chief Executive Officer and Director
|
||
Marvin
D. Burkett
|
63
|
Chief
Financial Officer
|
||
Ajay
K. Puri
|
51
|
Senior
Vice President, Worldwide Sales
|
||
Jeffrey
D. Fisher
|
47
|
Senior
Vice President, GPU Business Unit
|
||
David
M. Shannon
|
50
|
Senior
Vice President, General Counsel and Secretary
|
||
Daniel
F. Vivoli
|
45
|
Senior
Vice President, Marketing
|
· |
if
there were a sudden and significant decrease in demand for our products;
|
· |
if
there were a higher incidence of inventory obsolescence because of
rapidly
changing technology and customer requirements;
|
· |
if
we fail to estimate customer demand properly for our older products
as our
newer products are introduced; or
|
· |
if
our competition were to take unexpected competitive pricing actions.
|
· |
anticipate
the features and functionality that customers and consumers will
demand;
|
· |
incorporate
those features and functionalities into products that meet the exacting
design requirements of OEMs, ODMs, and add-in board and motherboard
manufacturers;
|
· |
price
our products competitively; and
|
· |
introduce
products to the market within the limited design cycle for OEMs,
ODMs, and
add-in board and motherboard manufacturers.
|
· |
proper new
product definition;
|
· |
timely
completion and introduction of new product designs;
|
· |
the
ability of third-party manufacturers to effectively manufacture our
new
products in a timely manner;
|
· |
dependence
on third-party subcontractors for assembly, testing and packaging
of our
products and in meeting product delivery schedules and maintaining
product
quality;
|
· |
the
quality of any new products;
|
· |
differentiation
of new products from those of our competitors;
|
· |
market
acceptance of our products and our customers' products; and
|
· |
availability
of adequate quantity and configurations of various types of memory
products.
|
· |
difficulty
in combining the technology, products, operations or workforce of
the
acquired business with our
business;
|
· |
disruption
of our ongoing businesses:
|
· |
difficulty
in realizing the potential financial or strategic benefits of the
transaction;
|
· |
diversion
of management’s attention from our
business;
|
· |
difficulty
in maintaining uniform standards, controls, procedures and
policies;
|
· |
disruption
of or delays in ongoing research and development
efforts;
|
· |
diversion
of capital and other resources;
|
· |
assumption
of liabilities;
|
· |
diversion
of resources and unanticipated expenses resulting from litigation
arising from potential or actual business acquisitions or
investments;
|
· |
difficulties
in entering into new markets in which we have limited or no experience
and
where competitors in such markets have stronger positions; and
|
· |
impairment
of relationships with employees and customers, or the loss of any
of our
key employees or of our target’s key employees, as a result of the
integration of new businesses and management personnel.
|
· |
suppliers
of discrete MCPs that incorporate a combination of networking, audio,
communications and input/output, or I/O, functionality as part of
their
existing solutions, such as ATI Technologies, Inc., or ATI, Broadcom
Corporation, or Broadcom, and
Intel;
|
· |
suppliers
of GPUs, including MCPs that incorporate 3D graphics functionality
as part
of their existing solutions, such as ATI, Intel, Matrox Electronics
Systems Ltd., Silicon Integrated Systems, Inc., VIA Technologies,
Inc.,
and XGI Technology Inc.; and
|
· |
suppliers
of GPUs or GPU intellectual property for handheld and embedded devices
that incorporate advanced graphics functionality as part of their
existing
solutions, such as ATI, Bitboys, Broadcom, Fujitsu Limited, Imagination
Technologies Ltd., NEC Corporation, Qualcomm Incorporated, Renesas
Technology Corp., Seiko-Epson, Texas Instruments Incorporated, and
Toshiba
America, Inc.
|
· |
international
economic and political conditions;
|
· |
unexpected
changes in, or impositions of, legislative or regulatory requirements;
|
· |
labor
issues in foreign countries;
|
· |
cultural
differences in the conduct of business;
|
· |
inadequate
local infrastructure;
|
· |
delays
resulting from difficulty in obtaining export licenses for certain
technology, tariffs, quotas and other trade barriers and
restrictions;
|
· |
transportation
delays;
|
· |
longer
payment cycles;
|
· |
difficulty
in collecting accounts receivable;
|
· |
fluctuations
in currency exchange rates;
|
· |
imposition
of additional taxes and penalties;
|
· |
different
legal standards with respect to protection of intellectual property;
|
· |
the
burdens of complying with a variety of foreign laws; and
|
· |
other
factors beyond our control, including terrorism, civil unrest, war
and
diseases such as severe acute respiratory syndrome and the Avian
flu.
|
· |
commercial
significance of our operations and our competitors’ operations in
particular countries and regions;
|
· |
location
in which our products are manufactured;
|
· |
our
strategic technology or product directions in different countries;
and
|
· |
degree
to which intellectual property laws exist and are meaningfully enforced
in
different jurisdictions.
|
· |
assert
claims of infringement;
|
· |
enforce
our patents
|
· |
protect
our trade secrets or know-how; or
|
· |
determine
the enforceability, scope and validity of the propriety rights of
others.
|
· |
the
jurisdictions in which profits are determined to be earned and taxed;
|
· |
adjustments
to estimated taxes upon finalization of various tax returns;
|
· |
changes
in available tax credits;
|
· |
changes
in share-based compensation expense;
|
· |
changes
in tax laws, the interpretation of tax laws either in the United
States or
abroad or the issuance of new interpretative accounting guidance
related
to uncertain transactions and calculations where the tax treatment
was
previously uncertain; and
|
· |
the
resolution of issues arising from tax audits with various tax
authorities.
|
· |
the
ability of the board of directors to create and issue preferred stock
without prior stockholder
approval;
|
· |
the
prohibition of stockholder action by written consent;
|
· |
a
classified board of directors; and
|
· |
advance
notice requirements for director nominations and stockholder proposals.
|
|
High
|
Low
|
|
Year
ended January 28, 2007
|
|
|
|
First
Quarter (through March 3, 2006)
|
$50.72
|
$42.87
|
|
|
|
|
|
Year
ended January 29, 2006
|
|
|
|
Fourth
Quarter
|
$46.76
|
$32.55
|
|
Third
Quarter
|
$35.95
|
$27.04
|
|
Second
Quarter
|
$29.39
|
$21.52
|
|
First
Quarter
|
$29.60
|
$20.92
|
|
|
|
|
|
Year
ended January 30, 2005
|
|
|
|
Fourth
Quarter
|
$24.96
|
$13.14
|
|
Third
Quarter
|
$15.89
|
$9.30
|
|
Second
Quarter
|
$24.11
|
$14.40
|
|
First
Quarter
|
$27.35
|
$20.63
|
Period
|
|
Total
Number of Shares Purchased
|
|
Average
Price Paid per Share
|
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
|
Approximate
Dollar Value of Shares that May Yet Be Purchased Under the Plans
or
Programs (1)
|
|
||||
October
31, 2005 through November 27, 2005
|
|
|
-
|
|
|
$
-
|
|
|
-
|
|
$
|
136,846,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
November
28, 2005 through December 25, 2005
|
|
|
-
|
|
|
$
-
|
|
|
-
|
|
$
|
136,846,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
26, 2005 through January 29, 2006
|
|
|
1,355,260
(3)
|
|
|
$36.89
|
|
|
1,355,260
(3)
|
|
$
|
86,846,554
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
|
|
1,355,260
|
|
|
$36.89
(2)
|
|
|
1,355,260
|
|
|
|
|
|
Year
Ended
|
|
|||||||||||||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
January
26,
|
|
January
27,
|
|
|||||
|
|
2006
(A)
|
2005
|
2004
(B, C)
|
2003
(D, E)
|
2002
(F, G)
|
|
|||||||||
|
|
(in
thousands, except per share data)
|
|
|||||||||||||
Consolidated
Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Revenue
|
|
$
|
2,375,687
|
|
$
|
2,010,033
|
|
$
|
1,822,945
|
|
$
|
1,909,447
|
|
$
|
1,369,471
|
|
Gross
profit
|
|
$
|
910,795
|
|
$
|
649,486
|
|
$
|
528,878
|
|
$
|
576,012
|
|
$
|
519,238
|
|
Income
from operations
|
|
$
|
340,097
|
|
$
|
113,593
|
|
$
|
90,157
|
|
$
|
143,986
|
|
$
|
241,732
|
|
Income
before income tax expense
|
|
$
|
360,221
|
|
$
|
125,445
|
|
$
|
86,673
|
|
$
|
150,557
|
|
$
|
252,749
|
|
Income
tax expense
|
|
$
|
57,635
|
|
$
|
25,089
|
|
$
|
12,254
|
|
$
|
59,758
|
|
$
|
75,825
|
|
Net
income
|
|
$
|
302,586
|
|
$
|
100,356
|
|
$
|
74,419
|
|
$
|
90,799
|
|
$
|
176,924
|
|
Basic
net income per share
|
|
$
|
1.78
|
|
$
|
0.60
|
|
$
|
0.46
|
|
$
|
0.59
|
|
$
|
1.24
|
|
Diluted
net income per share
|
|
$
|
1.65
|
|
$
|
0.57
|
|
$
|
0.43
|
|
$
|
0.54
|
|
$
|
1.03
|
|
Shares
used in basic per share computation
|
|
|
169,690
|
|
|
166,062
|
|
|
160,924
|
|
|
153,513
|
|
|
143,015
|
|
Shares
used in diluted per share computation
|
|
|
182,951
|
|
|
176,558
|
|
|
172,707
|
|
|
168,393
|
|
|
171,074
|
|
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
January
26,
|
|
January
27,
|
|
|||||
|
|
2006
|
|
2005
|
|
2004
|
|
2003
|
|
2002
|
|
|||||
|
|
(in
thousands)
|
|
|||||||||||||
Consolidated
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash,
cash equivalents and marketable securities
|
|
$
|
950,174
|
|
$
|
670,045
|
|
$
|
604,043
|
|
$
|
1,028,413
|
|
$
|
791,377
|
|
Total
assets
|
|
$
|
1,915,299
|
|
$
|
1,628,536
|
|
$
|
1,399,344
|
|
$
|
1,617,015
|
|
$
|
1,503,174
|
|
Capital
lease obligations, less current portion
|
|
$
|
--
|
|
$
|
--
|
|
$
|
856
|
|
$
|
4,880
|
|
$
|
5,861
|
|
Deferred
revenue
|
|
$
|
217
|
|
$
|
11,500
|
|
$
|
--
|
|
$
|
--
|
|
$
|
70,193
|
|
Non-current
deferred income tax liabilities
|
|
$
|
8,260
|
|
$
|
20,754
|
|
$
|
8,609
|
|
$
|
--
|
|
$
|
--
|
|
Other
long-term debt
|
|
$
|
--
|
|
$
|
--
|
|
$
|
--
|
|
$
|
300,000
|
|
$
|
300,000
|
|
Long-term
liabilities
|
|
$
|
10,624
|
|
$
|
8,358
|
|
$
|
4,582
|
|
$
|
--
|
|
$
|
--
|
|
Total
stockholders’ equity
|
|
$
|
1,457,756
|
|
$
|
1,178,268
|
|
$
|
1,051,185
|
|
$
|
932,687
|
|
$
|
763,819
|
|
Cash
dividends declared per common share
|
|
$
|
--
|
|
$
|
--
|
|
$
|
--
|
|
$
|
--
|
|
$
|
--
|
|
|
Year
Ended
|
||||
|
January
29,
|
January
30,
|
January
25,
|
||
|
2006
|
2005
|
2004
|
||
Revenue
|
100.0%
|
100.0%
|
100.0%
|
||
Cost
of revenue
|
61.7
|
67.7
|
71.0
|
||
Gross
profit
|
38.3
|
32.3
|
29.0
|
||
Operating
expenses:
|
|
|
|
||
Research
and development
|
14.8
|
16.7
|
14.8
|
||
Sales,
general and administrative
|
8.6
|
10.0
|
9.1
|
||
In-process
research and development
|
--
|
--
|
0.2
|
||
Settlement
costs
|
0.6
|
--
|
--
|
||
Total
operating expenses
|
24.0
|
26.7
|
24.1
|
||
Income
from operations
|
14.3
|
5.6
|
4.9
|
||
Interest
and other income, net
|
0.8
|
0.6
|
0.5
|
||
Convertible
debenture redemption expense
|
--
|
--
|
(0.7)
|
||
Income
before income tax expense
|
15.1
|
6.2
|
4.7
|
||
Income
tax expense
|
2.4
|
1.2
|
0.6
|
||
Net
income
|
12.7%
|
5.0%
|
4.1%
|
|
|
Year
Ended
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
||||||||||||
|
|
Jan.
29,
|
|
Jan.
30,
|
|
$
|
|
%
|
|
Jan.
30,
|
|
Jan.
25,
|
|
$
|
|
%
|
|
||||||||
|
|
2006
|
|
2005
|
|
Change
|
|
Change
|
|
2005
|
|
2004
|
|
Change
|
|
Change
|
|
||||||||
|
|
(in
thousands)
|
|
||||||||||||||||||||||
Research
and Development:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries
and benefits
|
|
$
|
206.0
|
|
$
|
173.6
|
|
$
|
32.4
|
|
|
19
|
%
|
$
|
173.6
|
|
$
|
137.6
|
|
$
|
36.0
|
|
|
26
|
%
|
Computer
software and lab equipment
|
|
|
46.4
|
|
|
41.1
|
|
|
5.3
|
|
|
13
|
%
|
|
41.1
|
|
|
36.9
|
|
|
4.2
|
|
|
11
|
%
|
New
product development
|
|
|
28.6
|
|
|
29.0
|
|
|
(0.4
|
)
|
|
(1
|
)%
|
|
29.0
|
|
|
18.6
|
|
|
10.4
|
|
|
56
|
%
|
Facility
expense
|
|
|
32.0
|
|
|
31.4
|
|
|
0.6
|
|
|
2
|
%
|
|
31.4
|
|
|
28.3
|
|
|
3.1
|
|
|
11
|
%
|
Depreciation
and amortization
|
|
|
58.2
|
|
|
56.1
|
|
|
2.1
|
|
|
4
|
%
|
|
56.1
|
|
|
44.6
|
|
|
11.5
|
|
|
26
|
%
|
License
and development project costs
|
|
|
(28.9
|
)
|
|
(2.0
|
)
|
|
(26.9
|
)
|
|
(1,345
|
)%
|
|
(2.0
|
)
|
|
--
|
|
|
(2.0
|
)
|
|
--
|
|
Other
|
|
|
9.8
|
|
|
5.9
|
|
|
3.9
|
|
|
66
|
%
|
|
5.9
|
|
|
4.0
|
|
|
1.9
|
|
|
48
|
%
|
Total
|
|
$
|
352.1
|
|
$
|
335.1
|
|
$
|
17.0
|
|
|
5
|
%
|
$
|
335.1
|
|
$
|
270.0
|
|
$
|
65.1
|
|
|
24
|
%
|
Research
and development as a percentage of net revenue
|
|
|
15
|
%
|
|
17
|
%
|
|
|
|
|
|
17
|
%
|
|
15
|
%
|
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
||||||||||||
|
|
Jan.
29,
|
|
Jan.
30,
|
|
$
|
|
%
|
|
Jan.
30,
|
|
Jan.
25,
|
|
$
|
|
%
|
|
||||||||
|
|
2006
|
|
2005
|
|
Change
|
|
Change
|
|
2005
|
|
2004
|
|
Change
|
|
Change
|
|
||||||||
|
|
(in
thousands)
|
|
||||||||||||||||||||||
Sales,
General and Administrative:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Salaries
and benefits
|
|
$
|
108.5
|
|
$
|
94.7
|
|
$
|
13.8
|
|
|
15
|
%
|
$
|
94.7
|
|
$
|
76.3
|
|
$
|
18.4
|
|
|
24
|
%
|
Advertising
and promotions
|
|
|
49.4
|
|
|
66.6
|
|
|
(17.2
|
)
|
|
(26
|
)%
|
|
66.6
|
|
|
47.2
|
|
|
19.4
|
|
|
41
|
%
|
Legal
and accounting fees
|
|
|
18.7
|
|
|
12.6
|
|
|
6.1
|
|
|
48
|
%
|
|
12.6
|
|
|
12.6
|
|
|
--
|
|
|
--
|
|
Facility
expense
|
|
|
12.5
|
|
|
9.6
|
|
|
2.9
|
|
|
30
|
%
|
|
9.6
|
|
|
8.3
|
|
|
1.3
|
|
|
16
|
%
|
Depreciation
and amortization
|
|
|
8.5
|
|
|
13.0
|
|
|
(4.5
|
)
|
|
(35
|
)%
|
|
13.0
|
|
|
14.6
|
|
|
(1.6
|
)
|
|
(11
|
)%
|
Other
|
|
|
6.8
|
|
|
4.3
|
|
|
2.5
|
|
|
58
|
%
|
|
4.3
|
|
|
6.2
|
|
|
(1.9
|
)
|
|
(31
|
)%
|
Total
|
|
$
|
204.4
|
|
$
|
200.8
|
|
$
|
3.6
|
|
|
2
|
%
|
$
|
200.8
|
|
$
|
165.2
|
|
$
|
35.6
|
|
|
22
|
%
|
Sales,
general and administrative as a percentage of net revenue
|
|
|
9
|
%
|
|
10
|
%
|
|
|
|
|
|
10
|
%
|
|
9
|
%
|
|
|
|
|
Contractual
Obligations
|
|
Total
|
|
Within
1 Year
|
|
2-3
Years
|
|
4-5
Years
|
|
After
5 Years
|
|
|||||
|
|
(in
thousands)
|
|
|||||||||||||
Operating
leases
|
|
$
|
172,483
|
|
$
|
29,557
|
|
$
|
57,717
|
$
|
55,606
|
|
$
|
29,603
|
|
|
Purchase
obligations (1)
|
|
|
401,571
|
|
|
401,571
|
|
|
--
|
|
|
--
|
|
|
--
|
|
Total
contractual obligations
|
|
$
|
574,054
|
|
$
|
431,128
|
|
$
|
57,717
|
|
$
|
55,606
|
|
$
|
29,603
|
|
|
|
|
Page
|
|
|
|
|
(a)
|
1.
|
Consolidated
Financial Statements
|
|
|
|
Report
of Independent Registered Public Accounting Firm, PricewaterhouseCoopers
LLP
|
55
|
|
|
Report
of Independent Registered Public Accounting Firm, KPMG LLP
|
57
|
|
|
Consolidated
Balance Sheets as of January 29, 2006 and January 30, 2005
|
58
|
|
|
Consolidated
Statements of Income for the years ended January 29, 2006, January
30,
2005, and January 25, 2004
|
59
|
|
|
Consolidated
Statements of Stockholders’ Equity and Comprehensive Income for the years
ended January 29, 2006, January 30, 2005, and January 25,
2004
|
60
|
|
|
Consolidated
Statements of Cash Flows for the years January 29, 2006, January
30, 2005,
and January 25, 2004
|
61
|
|
|
Notes
to Consolidated Financial Statements
|
63
|
|
|
|
|
(a)
|
2.
|
Financial
Statement Schedules
|
|
|
|
Schedule
II Valuation and Qualifying Accounts
|
92
|
|
|
|
|
(a)
|
3.
|
Exhibits
|
93
|
|
|
The
exhibits listed in the accompanying index to exhibits are filed or
incorporated by reference as a part of this Annual Report on Form
10-K.
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
ASSETS
|
|
|
|
|
|
||
Current
assets:
|
|
|
|
|
|
||
Cash
and cash equivalents
|
|
$
|
551,756
|
|
$
|
208,512
|
|
Marketable
securities
|
|
|
398,418
|
|
|
461,533
|
|
Accounts
receivable, less allowances of $10,837 and $13,153 in 2006 and 2005,
respectively
|
|
|
318,186
|
|
|
296,279
|
|
Inventories
|
|
|
254,792
|
|
|
315,518
|
|
Prepaid
expenses and other current assets
|
|
|
24,387
|
|
|
19,819
|
|
Deferred
income taxes
|
|
|
1,393
|
|
|
3,265
|
|
Total
current assets
|
|
|
1,548,932
|
|
|
1,304,926
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
|
|
178,152
|
|
|
178,955
|
|
Deposits
and other assets
|
|
|
27,477
|
|
|
9,034
|
|
Goodwill
|
|
|
145,317
|
|
|
108,107
|
|
Intangible
assets, net
|
|
|
15,421
|
|
|
27,514
|
|
|
|
$
|
1,915,299
|
|
$
|
1,628,536
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
179,395
|
|
$
|
238,223
|
|
Accrued
liabilities
|
|
|
259,264
|
|
|
182,077
|
|
Current
portion of capital lease obligations
|
|
|
--
|
|
|
856
|
|
Total
current liabilities
|
|
|
438,659
|
|
|
421,156
|
|
|
|
|
|
|
|
|
|
Deferred
income tax liabilities
|
|
|
8,260
|
|
|
20,754
|
|
Other
long-term liabilities
|
|
|
10,624
|
|
|
8,358
|
|
Commitments
and contingencies - see Note 11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity:
|
|
|
|
|
|
|
|
Preferred
stock, $.001 par value; 2,000,000 shares authorized; none
issued
|
--
|
--
|
|||||
Common
stock, $.001 par value; 1,000,000,000 shares authorized;
179,963,979
shares issued and 171,477,456 outstanding in 2006; and
169,173,898
shares issued and 167,089,545 outstanding in 2005
|
|
|
180
|
|
|
169
|
|
Additional
paid-in capital
|
|
|
798,251
|
|
|
636,618
|
|
Deferred
compensation
|
|
|
(1,676
|
)
|
|
(2,926
|
)
|
Treasury
stock
|
|
|
(212,142
|
)
|
|
(24,644
|
)
|
Accumulated
other comprehensive loss, net
|
|
|
(1,957
|
)
|
|
(3,463
|
)
|
Retained
earnings
|
|
|
875,100
|
|
|
572,514
|
|
Total
stockholders' equity
|
|
1,457,756
|
|
1,178,268
|
|
||
|
|
$
|
1,915,299
|
|
$
|
1,628,536
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
Revenue
|
|
$
|
2,375,687
|
|
$
|
2,010,033
|
|
$
|
1,822,945
|
|
Cost
of revenue
|
|
|
1,464,892
|
|
|
1,360,547
|
|
|
1,294,067
|
|
Gross
profit
|
|
|
910,795
|
|
|
649,486
|
|
|
528,878
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Research
and development
|
|
|
352,099
|
|
|
335,104
|
|
|
269,972
|
|
Sales,
general and administrative
|
|
|
204,441
|
|
|
200,789
|
|
|
165,249
|
|
In-process
research and development
|
|
|
--
|
|
|
--
|
|
|
3,500
|
|
Settlement
costs
|
|
|
14,158
|
|
|
--
|
|
|
--
|
|
Total
operating expenses
|
|
|
570,698
|
|
|
535,893
|
|
|
438,721
|
|
Income
from operations
|
|
|
340,097
|
|
|
113,593
|
|
|
90,157
|
|
Interest
income
|
|
|
20,698
|
|
|
11,422
|
|
|
18,561
|
|
Interest
expense
|
|
|
(72
|
)
|
|
(164
|
)
|
|
(12,010
|
)
|
Other
income (expense), net
|
|
|
(502
|
)
|
|
594
|
|
|
3,033
|
|
Convertible
debenture redemption expense
|
|
|
--
|
|
|
--
|
|
|
(13,068
|
)
|
Income
before income tax expense
|
|
|
360,221
|
|
|
125,445
|
|
|
86,673
|
|
Income
tax expense
|
|
|
57,635
|
|
|
25,089
|
|
|
12,254
|
|
Net
income
|
|
$
|
302,586
|
|
$
|
100,356
|
|
$
|
74,419
|
|
Basic
net income per share
|
|
$
|
1.78
|
|
$
|
0.60
|
|
$
|
0.46
|
|
Diluted
net income per share
|
|
$
|
1.65
|
|
$
|
0.57
|
|
$
|
0.43
|
|
Shares
used in basic per share computation
|
|
|
169,690
|
|
|
166,062
|
|
|
160,924
|
|
Shares
used in diluted per share computation
|
|
|
182,951
|
|
|
176,558
|
|
|
172,707
|
|
|
|
Common
Stock
|
|
Additional
Paid
in
|
|
Deferred
|
|
Treasury
|
|
Accumulated
Other Comprehensive
|
|
Retained
|
|
Total
Stockholders’
|
|
Total
Comprehensive
|
|
|||||||||||
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Compenation
|
|
Stock
|
|
Income
(Loss)
|
|
Earnings
|
|
Equity
|
|
Income
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balances,
January 26, 2003
|
|
|
157,790,022
|
|
$
|
158
|
|
$
|
531,186
|
|
$
|
(156
|
)
|
$
|
--
|
|
$
|
3,760
|
|
$
|
397,739
|
|
$
|
932,687
|
|
$
|
94,451
|
|
Issuance
of common stock from stock plans
|
|
|
6,355,765
|
|
|
6
|
|
|
37,667
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
37,673
|
|
|
|
|
Tax
benefit from stock plans
|
|
|
--
|
|
|
--
|
|
|
8,488
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
8,488
|
|
|
|
|
Deferred
compensation
|
|
|
--
|
|
|
--
|
|
|
6,140
|
|
|
(5,984
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
156
|
|
|
|
|
Amortization
of deferred compensation
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
672
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
672
|
|
|
|
|
Unrealized
loss, net of $1,940 tax effect
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(383
|
)
|
|
--
|
|
|
(383
|
)
|
|
(383
|
)
|
Reclassification
adjustment for net gains included in net income, net of $632 tax
effect
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(2,527
|
)
|
|
--
|
|
|
(2,527
|
)
|
|
(2,527
|
)
|
Net
income
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
74,419
|
|
|
74,419
|
|
|
74,419
|
|
Balances,
January 25, 2004
|
|
|
164,145,787
|
|
|
164
|
|
|
583,481
|
|
|
(5,468
|
)
|
|
--
|
|
|
850
|
|
|
472,158
|
|
|
1,051,185
|
|
|
71,509
|
|
Issuance
of common stock from stock plans
|
|
|
5,028,111
|
|
|
5
|
|
|
42,497
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
42,502
|
|
|
|
|
Stock
repurchase
|
|
|
(2,084,353
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(24,644
|
)
|
|
--
|
|
|
--
|
|
|
(24,644
|
)
|
|
|
|
Tax
benefit from stock plans
|
|
|
--
|
|
|
--
|
|
|
11,845
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
11,845
|
|
|
|
|
Reversal
of deferred compensation
|
|
|
--
|
|
|
--
|
|
|
(1,205
|
)
|
|
1,205
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
|
Amortization
of deferred compensation
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
1,337
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
1,337
|
|
|
|
|
Unrealized
loss, net of $1,470 tax effect
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(4,468
|
)
|
|
--
|
|
|
(4,468
|
)
|
|
(4,468
|
)
|
Reclassification
adjustment for net losses included in net income, net of ($38) tax
effect
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
155
|
|
|
--
|
|
|
155
|
|
|
155
|
|
Net
income
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
100,356
|
|
|
100,356
|
|
|
100,356
|
|
Balances,
January 30, 2005
|
|
|
167,089,545
|
|
|
169
|
|
|
636,618
|
|
|
(2,926
|
)
|
|
(24,644
|
)
|
|
(3,463
|
)
|
|
572,514
|
|
|
1,178,268
|
|
|
96,043
|
|
Issuance
of common stock from stock plans
|
|
|
10,831,746
|
|
|
11
|
|
|
127,486
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
127,497
|
|
|
|
|
Stock
repurchase
|
|
|
(6,402,170
|
)
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(188,509
|
)
|
|
--
|
|
|
--
|
|
|
(188,509
|
)
|
|
|
|
Tax
benefit from stock plans
|
|
|
--
|
|
|
--
|
|
|
34,821
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
34,821
|
|
|
|
|
Cancellation
of shares
|
|
|
(41,665
|
)
|
|
--
|
|
|
(520
|
)
|
|
--
|
|
|
1,011
|
|
|
--
|
|
|
--
|
|
|
491
|
|
|
|
|
Reversal
of deferred compensation
|
|
|
--
|
|
|
--
|
|
|
(154
|
)
|
|
154
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
|
Amortization
of deferred compensation
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
1,096
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
1,096
|
|
|
|
|
Unrealized
loss, net of $845 tax effect
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(120
|
)
|
|
--
|
|
|
(120
|
)
|
|
(120
|
)
|
Reclassification
adjustment for net losses included in net income, net of ($407) tax
effect
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
1,626
|
|
|
--
|
|
|
1,626
|
|
1,626
|
||
Net
income
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
302,586
|
|
|
302,586
|
|
|
302,586
|
|
Balances,
January 29, 2006
|
|
|
171,477,456
|
|
$
|
180
|
|
$
|
798,251
|
|
$
|
(1,676
|
)
|
$
|
(212,142
|
)
|
$
|
(1,957
|
)
|
$
|
875,100
|
|
$
|
1,457,756
|
|
$
|
304,092
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
Cash
flows from operating activities:
|
|
|
|
|
|
|
|
|||
Net
income
|
|
$
|
302,586
|
|
$
|
100,356
|
|
$
|
74,419
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|||
In-process
research and development
|
|
|
--
|
|
|
--
|
|
|
3,500
|
|
Non-cash
realized gain on investment exchange
|
|
|
(96
|
)
|
|
(533
|
)
|
|
--
|
|
Depreciation
and amortization
|
|
|
97,977
|
|
|
102,597
|
|
|
82,016
|
|
Net
loss on retirements of property and equipment
|
|
|
1,005
|
|
|
412
|
|
|
--
|
|
Write-off
of convertible debenture issuance costs
|
|
|
--
|
|
|
--
|
|
|
5,485
|
|
Deferred
income taxes
|
|
|
(10,622
|
)
|
|
12,141
|
|
|
55,135
|
|
Stock-based
compensation
|
|
|
1,096
|
|
|
1,337
|
|
|
672
|
|
Bad
debt expense (benefit)
|
|
|
(492
|
)
|
|
(844
|
)
|
|
731
|
|
Tax
benefit from employee stock plans
|
|
|
34,821
|
|
|
11,845
|
|
|
8,488
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|||
Accounts
receivable
|
|
|
(21,415
|
)
|
|
(110,312
|
)
|
|
(88,222
|
)
|
Inventories
|
|
|
60,726
|
|
|
(81,280
|
)
|
|
(85,126
|
)
|
Prepaid
expenses and other current assets
|
|
|
(4,568
|
)
|
|
(5,569
|
)
|
|
(2,698
|
)
|
Deposits
and other assets
|
|
|
(8,073
|
)
|
|
(1,458
|
)
|
|
(3,482
|
)
|
Accounts
payable
|
|
|
(58,828
|
)
|
|
52,941
|
|
|
43,506
|
|
Accrued
liabilities
|
|
|
52,291
|
|
|
50,567
|
|
|
(44,746
|
)
|
Net
cash provided by operating activities
|
|
|
446,408
|
|
|
132,200
|
|
|
49,678
|
|
Cash
flows from investing activities:
|
|
|
|
|
|
|
|
|||
Purchases
of marketable securities
|
|
|
(338,058
|
)
|
|
(313,760
|
)
|
|
(734,642
|
)
|
Sales
and maturities of marketable securities
|
|
|
397,686
|
|
|
229,068
|
|
|
1,021,590
|
|
Acquisition
of businesses
|
|
|
(12,131
|
)
|
|
--
|
|
|
(71,303
|
)
|
Purchases
of property and equipment and intangible assets
|
|
|
(79,600
|
)
|
|
(67,261
|
)
|
|
(127,604
|
)
|
Investments
in non-affiliates
|
|
|
(9,684
|
)
|
|
--
|
|
|
--
|
|
Net
cash provided by (used in) investing activities
|
|
|
(41,787
|
)
|
|
(151,953
|
)
|
|
88,041
|
|
Cash
flows from financing activities:
|
|
|
|
|
|
|
|
|||
Redemption
of convertible debenture
|
|
|
--
|
|
|
--
|
|
|
(300,000
|
)
|
Common
stock issued under employee stock plans
|
|
|
127,497
|
|
|
42,502
|
|
|
37,757
|
|
Stock
repurchase
|
|
|
(188,509
|
)
|
|
(24,644
|
)
|
|
--
|
|
Principal
payments on capital leases
|
|
|
(856
|
)
|
|
(4,015
|
)
|
|
(8,048
|
)
|
Retirement
of common stock
|
|
|
491
|
|
|
--
|
|
|
--
|
|
Net
cash provided by (used in) financing activities
|
|
|
(61,377
|
)
|
|
13,843
|
|
|
(270,291
|
)
|
Change
in cash and cash equivalents
|
|
|
343,244
|
|
|
(5,910
|
)
|
|
(132,572
|
)
|
Cash
and cash equivalents at beginning of period
|
|
|
208,512
|
|
|
214,422
|
|
|
346,994
|
|
Cash
and cash equivalents at end of period
|
|
$
|
551,756
|
|
$
|
208,512
|
|
$
|
214,422
|
|
|
|
|
|
|
|
|
|
|||
Supplemental
disclosures of cash flow information:
|
|
|
|
|
|
|
|
|||
Cash
paid for interest
|
|
$
|
12
|
|
$
|
163
|
|
$
|
15,167
|
|
Cash
paid (refund) for income taxes, net
|
|
$
|
3,368
|
|
$
|
763
|
|
$
|
(211
|
)
|
Other
non-cash activities:
|
|
|
|
|
|
|
|
|||
Acquisition
of business - goodwill adjustment
|
|
$
|
25,765
|
$
|
1,091
|
$
|
--
|
|
||
Assets
recorded under capital lease arrangements
|
|
$
|
--
|
|
$
|
--
|
|
$
|
2,528
|
|
Application
of customer advance to accounts receivable
|
|
$
|
--
|
$
|
11,508
|
$
|
46,866
|
|||
Marketable
security received from investment exchange
|
|
$
|
96
|
|
$
|
688
|
|
$
|
--
|
|
Asset
retirement obligation
|
|
$
|
1,835
|
|
$
|
4,483
|
|
$
|
--
|
|
Unrealized
gains/losses from marketable securities
|
|
$
|
1,068
|
$
|
5,745
|
$
|
4,850
|
|
||
Deferred
stock-based compensation
|
|
$
|
154
|
$
|
1,205
|
$
|
6,140
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
(In
thousands, except per share data)
|
|
|||||||
Net
income, as reported
|
|
$
|
302,586
|
|
$
|
100,356
|
|
$
|
74,419
|
|
Add:
Stock-based employee compensation expense
included
in reported net income, net of related tax effects
|
|
|
920
|
|
|
1,070
|
|
|
537
|
|
Deduct:
Stock-based employee compensation expense
determined
under fair value-based method for all awards,
net
of related tax effects
|
|
|
(79,862
|
)
|
|
(87,071
|
)
|
|
(74,513
|
)
|
Pro
forma net income
|
|
$
|
223,644
|
|
$
|
14,355
|
|
$
|
443
|
|
Basic
net income per share - as reported
|
|
$
|
1.78
|
|
$
|
0.60
|
|
$
|
0.46
|
|
Basic
net income per share - pro forma
|
|
$
|
1.32
|
|
$
|
0.09
|
|
$
|
0.00
|
|
Diluted
net income per share - as reported
|
|
$
|
1.65
|
|
$
|
0.57
|
|
$
|
0.43
|
|
Diluted
net income per share - pro forma
|
|
$
|
1.22
|
|
$
|
0.08
|
|
$
|
0.00
|
Stock
Options
|
|||||
|
Year
Ended
|
Year
Ended
|
Year
Ended
|
||
|
January
29,
|
January
30,
|
January
25,
|
||
2006
|
2005
|
2004
|
|||
|
(Using
a binomial model)
|
(Using
the Black-Scholes model)
|
(Using
the Black-Scholes model)
|
||
Weighted
average expected life of stock options (in years)
|
3.6
- 5.1
|
4.0
|
4.0
|
||
Risk
free interest rate
|
4.0%
- 4.4%
|
3.0%
|
2.4%
|
||
Volatility
|
34%
- 48%
|
75%
- 80%
|
80%
|
||
Dividend
yield
|
--
|
--
|
--
|
Employee
Stock Purchase Plan
|
|||||
|
Year
Ended
|
Year
Ended
|
Year
Ended
|
||
|
January
29,
|
January
30,
|
January
25,
|
||
2006
|
2005
|
2004
|
|||
|
(Using
the Black-Scholes model)
|
(Using
the Black-Scholes model)
|
(Using
the Black-Scholes model)
|
||
Weighted
average expected life of stock options (in years)
|
0.5
- 2.0
|
0.5
- 2.0
|
0.5
-1.0
|
||
Risk
free interest rate
|
0.9%
- 3.7%
|
1.1%
- 2.1%
|
1.6%
- 2.4%
|
||
Volatility
|
30%
- 45%
|
80%
|
88%
|
||
Dividend
yield
|
--
|
--
|
--
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
(In
thousands, except per share data)
|
|
|||||||
Numerator:
|
|
|
|
|
|
|
|
|||
Numerator
for basic and diluted net income per share
|
|
$
|
302,586
|
|
$
|
100,356
|
|
$
|
74,419
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
Denominator
for basic net income per share, weighted average shares
|
|
|
169,690
|
|
|
166,062
|
|
|
160,924
|
|
Effect
of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
Stock
options outstanding
|
|
|
13,261
|
|
|
10,496
|
|
|
11,783
|
|
Denominator
for diluted net income per share, weighted average shares
|
|
|
182,951
|
|
|
176,558
|
|
|
172,707
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
net income per share
|
|
$
|
1.78
|
|
$
|
0.60
|
|
$
|
0.46
|
|
Diluted
net income per share
|
|
$
|
1.65
|
|
$
|
0.57
|
|
$
|
0.43
|
|
|
|
Fair
Market Value
|
|
Straight-Line
Amortization Period
|
|
||
|
|
(In
thousands)
|
|
(Years)
|
|
||
|
|
|
|
|
|
||
Property
and equipment
|
|
$
|
2,433
|
|
|
1-2
|
|
Trademarks
|
|
|
11,310
|
|
|
5
|
|
Goodwill
|
|
|
85,418
|
|
|
--
|
|
Total
|
|
$
|
99,161
|
|
|
|
|
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
(In
thousands)
|
|
|||||||
3dfx
|
|
$
|
75,326
|
|
$
|
50,326
|
|
$
|
50,326
|
|
MediaQ
|
|
|
52,913
|
|
|
52,913
|
|
|
53,695
|
|
Other
|
|
|
17,078
|
|
|
4,868
|
|
|
4,888
|
|
Total
goodwill
|
|
$
|
145,317
|
|
$
|
108,107
|
|
$
|
108,909
|
|
|
|
January
29, 2006
|
|
January
30, 2005
|
|
||||||||||||||
|
|
Gross
Carrying Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying Amount
|
|
Gross
Carrying Amount
|
|
Accumulated
Amortization
|
|
Net
Carrying Amount
|
|
||||||
|
|
(In
thousands)
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Technology
licenses
|
|
$
|
21,586
|
|
$
|
(13,595
|
)
|
$
|
7,991
|
|
$
|
17,236
|
|
$
|
(9,841
|
)
|
$
|
7,395
|
|
Patents
|
|
|
23,750
|
|
|
(19,911
|
)
|
|
3,839
|
|
|
23,260
|
|
|
(15,400
|
)
|
|
7,860
|
|
Acquired
intellectual property
|
|
|
27,086
|
|
|
(24,516
|
)
|
|
2,570
|
|
|
27,086
|
|
|
(18,578
|
)
|
|
8,508
|
|
Trademarks
|
|
|
11,310
|
|
|
(10,807
|
)
|
|
503
|
|
|
11,310
|
|
|
(8,544
|
)
|
|
2,766
|
|
Other
|
|
|
1,494
|
|
|
(976
|
)
|
|
518
|
|
|
1,494
|
|
|
(509
|
)
|
|
985
|
|
Total
intangible assets
|
|
$
|
85,226
|
|
$
|
(69,805
|
)
|
$
|
15,421
|
|
$
|
80,386
|
|
$
|
(52,872
|
)
|
$
|
27,514
|
|
|
|
January
29, 2006
|
|
||||||||||
|
|
Amortized
Cost
|
|
Unrealized
Gain
|
|
Unrealized
(Loss)
|
|
Estimated
Fair Value
|
|
||||
|
|
(In
thousands)
|
|
||||||||||
Asset-backed
securities
|
|
$
|
224,649
|
$
|
1
|
$
|
(983
|
)
|
$ |
223,667
|
|
||
Commercial
paper
|
|
|
138,091
|
|
|
13
|
|
|
(7
|
)
|
|
138,097
|
|
Obligations
of the United States government & its agencies
|
|
|
72,753
|
8
|
(834
|
)
|
71,927
|
|
|||||
United
States corporate notes, bonds and obligations
|
|
|
179,930
|
5
|
(1,467
|
)
|
178,468
|
|
|||||
Money
market
|
|
|
256,593
|
|
|
--
|
|
|
--
|
|
|
256,593
|
|
Total
|
|
$
|
872,016
|
|
$
|
27
|
|
$
|
(3,291
|
)
|
$
|
868,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified
as:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
$
|
470,334
|
|
Marketable
securities
|
|
|
|
|
|
|
|
|
|
|
|
398,418
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
868,752
|
|
|
|
January
30, 2005
|
|
||||||||||
|
|
Amortized
Cost
|
|
Unrealized
Gain
|
|
Unrealized
(Loss)
|
|
Estimated
Fair Value
|
|
||||
|
|
(In
thousands)
|
|
||||||||||
Publicly
traded equity securities
|
|
$
|
687
|
|
$
|
220
|
|
$
|
--
|
|
$
|
907
|
|
Asset-backed
securities
|
|
|
177,771
|
|
|
1
|
|
|
(1,786
|
)
|
|
175,986
|
|
Commercial
paper
|
|
|
7,854
|
|
|
--
|
|
|
--
|
|
|
7,854
|
|
Obligations
of the United States government & its agencies
|
|
|
104,768
|
|
|
--
|
|
|
(895
|
)
|
|
103,873
|
|
United
States corporate notes, bonds and obligations
|
|
|
182,688
|
|
|
6
|
|
|
(1,874
|
)
|
|
180,820
|
|
Money
market
|
|
|
164,377
|
|
|
--
|
|
|
--
|
|
|
164,377
|
|
Total
|
|
$
|
638,145
|
|
$
|
227
|
|
$
|
(4,555
|
)
|
$
|
633,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified
as:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
$
|
172,284
|
|
Marketable
securities
|
|
|
|
|
|
|
|
|
|
|
|
461,533
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
$
|
633,817
|
|
|
|
Less
than 12 months
|
|
12
months or greater
|
|
Total
|
|
||||||||||||
|
|
Fair
Value
|
|
Gross
Unrealized Losses
|
|
Fair
Value
|
|
Gross
Unrealized Losses
|
|
Fair
Value
|
|
Gross
Unrealized Losses
|
|
||||||
|
|
(In
thousands)
|
|
||||||||||||||||
Asset-backed
securities
|
|
$
|
78,286
|
$
|
(334
|
)
|
$
|
48,293
|
|
$
|
(649
|
)
|
$
|
126,579
|
|
$
|
(983
|
)
|
|
Commercial
paper
|
|
|
19,600
|
(7
|
)
|
|
--
|
|
|
--
|
|
|
19,600
|
|
|
(7
|
)
|
||
Obligations
of the United States government & its agencies
|
|
|
39,032
|
(434
|
)
|
|
22,851
|
|
|
(400
|
)
|
|
61,883
|
|
|
(834
|
)
|
||
United
States corporate notes, bonds and obligations
|
|
|
139,842
|
(485
|
)
|
|
64,593
|
|
|
(982
|
)
|
|
204,435
|
|
|
(1,467
|
)
|
||
Money
market
|
|
|
--
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
--
|
|
||
Total
|
|
$
|
276,760
|
$
|
(1,260
|
)
|
$
|
135,737
|
|
$
|
(2,031
|
)
|
$
|
412,497
|
|
$
|
(3,291
|
)
|
|
|
January
29, 2006
|
|
January
30, 2005
|
|
||||||||
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
||||
|
|
(In
thousands)
|
|
||||||||||
Less
than one year
|
|
$
|
491,259
|
$ |
491,246
|
|
$
|
198,242
|
|
$
|
197,844
|
|
|
Due
in 1 - 5 years
|
|
|
364,065
|
361,047
|
|
|
416,085
|
|
|
412,141
|
|
||
Due
in 6-7 years
|
|
|
16,692
|
16,459
|
|
|
23,132
|
|
|
22,925
|
|
||
Total
|
|
$
|
872,016
|
$ |
868,752
|
|
$
|
637,459
|
|
$
|
632,910
|
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
Inventories:
|
|
(In
thousands)
|
|
||||
Raw
materials
|
|
$
|
25,743
|
|
$
|
23,225
|
|
Work
in-process
|
|
|
107,847
|
|
|
130,211
|
|
Finished
goods
|
|
|
121,202
|
|
|
162,082
|
|
Total
inventories
|
|
$
|
254,792
|
|
$
|
315,518
|
|
|
|
January
29,
|
|
January
30,
|
|
||
|
2006
|
|
2005
|
|
|||
Deposits
and other assets:
|
|
(In
thousands)
|
|
||||
Investments
in non-affiliates
|
|
$
|
11,684
|
|
$
|
2,000
|
|
Long-term
prepayments
|
|
|
7,504
|
|
|
2,594
|
|
Other
|
|
|
8,289
|
|
|
4,440
|
|
Total
deposits and other assets
|
|
$
|
27,477
|
|
$
|
9,034
|
January
29, 2006
|
January
30, 2005
|
Estimated
Useful
Life
|
|
|||||||
Property
and Equipment:
|
|
(In
thousands)
|
|
(Years)
|
|
|||||
Software
|
|
$
|
153,618
|
|
$
|
125,310
|
|
|
3
-
5
|
|
Test
equipment
|
|
|
88,468
|
|
|
86,883
|
|
|
3
|
|
Computer
equipment
|
|
|
106,061
|
|
|
82,428
|
|
|
3
|
|
Leasehold
improvements
|
|
|
88,376
|
|
|
79,160
|
|
|
(A)
|
|
Construction
in process
|
|
|
2,260
|
|
|
3,264
|
|
|
(B)
|
|
Office
furniture and equipment
|
|
|
21,618
|
|
|
18,777
|
|
|
5
|
|
|
|
|
460,401
|
|
|
395,822
|
|
|
|
|
Accumulated
depreciation and amortization
|
|
|
(282,249
|
)
|
|
(216,867
|
)
|
|
|
|
Total
property and equipment, net
|
|
$
|
178,152
|
|
$
|
178,955
|
|
|
|
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
Accrued
Liabilities:
|
|
(In
thousands)
|
|
||||
Accrued
customer programs
|
|
$
|
90,056
|
|
$
|
83,013
|
|
Deferred
revenue
|
|
|
217
|
|
|
11,500
|
|
Customer
advances
|
|
|
1,556
|
|
|
1,457
|
|
Taxes
payable
|
|
|
58,355
|
|
|
28,826
|
|
Accrued
payroll and related expenses
|
|
|
53,080
|
|
|
37,016
|
|
Deferred
rent
|
|
|
11,879
|
|
|
10,844
|
|
Accrued
legal settlement
|
|
|
30,600
|
|
|
--
|
|
Other
|
|
|
13,521
|
|
|
9,421
|
|
Total
accrued liabilities
|
|
$
|
259,264
|
|
$
|
182,077
|
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
Other
Long-term Liabilities:
|
|
(In
thousands)
|
|
||||
Asset
retirement obligation
|
|
$
|
6,440
|
|
$
|
4,483
|
|
Other
long-term liabilities
|
|
|
4,184
|
|
|
3,875
|
|
Total
other long-term liabilities
|
|
$
|
10,624
|
|
$
|
8,358
|
|
Description
|
|
Balance
at Beginning of Period
|
|
Additions
(1)
|
|
Deductions
(2)
|
|
Balance
at End of Period
|
|
||||
|
|
(In
thousands)
|
|
||||||||||
Year
ended January 29, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for sales returns
|
|
$
|
11,687
|
|
$
|
35,127
|
|
$
|
(36,575
|
)
|
$
|
10,239
|
|
Year
ended January 30, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for sales returns
|
|
$
|
9,421
|
|
$
|
22,463
|
|
$
|
(20,197
|
)
|
$
|
11,687
|
|
Year
ended January 25, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for sales returns
|
|
$
|
13,228
|
|
$
|
23,796
|
|
$
|
(27,603
|
)
|
$
|
9,421
|
|
|
|
Options
Available
for Grant
|
|
Options
Outstanding
|
|
Weighted
Average Price Per Share
|
|
|||
Balances,
January 26, 2003
|
|
|
31,985,579
|
|
|
35,635,704
|
|
$
|
12.93
|
|
Authorized
|
|
|
8,796,156
|
|
|
--
|
|
|
--
|
|
Granted
|
|
|
(12,680,144
|
)
|
|
12,675,144
|
|
|
14.77
|
|
Exercised
|
|
|
--
|
|
|
(4,688,703
|
)
|
|
5.17
|
|
Cancelled
|
|
|
855,440
|
|
|
(855,440
|
)
|
|
19.26
|
|
Balances,
January 25, 2004
|
|
|
28,957,031
|
|
|
42,766,705
|
|
$
|
14.20
|
|
Authorized
|
|
|
--
|
|
|
--
|
|
|
--
|
|
Granted
|
|
|
(8,514,926
|
)
|
|
8,514,926
|
|
|
23.48
|
|
Exercised
|
|
|
--
|
|
|
(3,051,875
|
)
|
|
8.29
|
|
Cancelled
|
|
|
2,069,599
|
|
|
(2,069,599
|
)
|
|
18.82
|
|
Balances,
January 30, 2005
|
|
|
22,511,704
|
|
|
46,160,157
|
|
$
|
16.10
|
|
Authorized
|
|
|
--
|
|
|
--
|
|
|
--
|
|
Granted
|
|
|
(8,208,893
|
)
|
|
8,208,893
|
|
|
27.73
|
|
Exercised
|
|
|
--
|
|
|
(9,037,133
|
)
|
|
11.89
|
|
Cancelled
|
|
|
1,352,677
|
|
|
(1,352,677
|
)
|
|
20.57
|
|
Balances,
January 29, 2006
|
|
|
15,655,488
|
|
|
43,979,240
|
|
$
|
19.00
|
|
|
|
Options
Outstanding
|
|
Options
Exercisable
|
|
|||||||||||
Range
of Exercise Prices
|
|
Number
Outstanding
|
|
Weighted
Average Remaining Contractual
Life
|
|
Weighted
Average Exercise Price
|
|
Number
Exercisable
|
|
Weighted
Average Exercise Price
|
|
|||||
$0.09
- 0.09
|
|
|
2,000
|
|
|
0.9
|
|
$
|
0.09
|
|
|
2,000
|
|
$
|
0.09
|
|
0.33
- 0.33
|
|
|
112,300
|
|
|
1.6
|
|
$
|
0.33
|
|
|
112,300
|
|
$
|
0.33
|
|
0.66
- 0.79
|
|
|
327,710
|
|
|
1.8
|
|
$
|
0.74
|
|
|
327,710
|
|
$
|
0.74
|
|
1.38
- 1.93
|
|
|
3,128,914
|
|
|
2.2
|
|
$
|
1.75
|
|
|
3,128,914
|
|
$
|
1.75
|
|
2.21
- 2.25
|
|
|
170,250
|
|
|
2.6
|
|
$
|
2.25
|
|
|
170,250
|
|
$
|
2.25
|
|
4.09
- 5.88
|
|
|
2,387,233
|
|
|
3.5
|
|
$
|
4.73
|
|
|
2,385,911
|
|
$
|
4.73
|
|
7.65
- 11.07
|
|
|
3,673,508
|
|
|
5.0
|
|
$
|
9.54
|
|
|
3,251,830
|
|
$
|
9.62
|
|
11.51
- 17.18
|
|
|
10,083,542
|
|
|
4.0
|
|
$
|
14.49
|
|
|
6,076,088
|
|
$
|
14.67
|
|
17.53
- 26.25
|
|
|
15,871,324
|
|
|
4.7
|
|
$
|
23.02
|
|
|
6,350,213
|
|
$
|
20.85
|
|
26.38
- 39.54
|
|
|
7,597,959
|
|
|
5.3
|
|
$
|
32.15
|
|
|
3,625,484
|
|
$
|
31.93
|
|
42.98
- 53.61
|
|
|
624,000
|
|
|
5.6
|
|
$
|
43.35
|
|
|
623,750
|
|
$
|
43.35
|
|
65.47
- 65.47
|
|
|
500
|
|
|
6.0
|
|
$
|
65.47
|
|
|
500
|
|
$
|
65.47
|
|
$0.09
- $65.47
|
|
|
43,979,240
|
|
|
4.4
|
|
$
|
19.00
|
|
|
26,054,950
|
|
$
|
15.86
|
|
|
|
Operating
|
|
Year
ending January:
|
|
(In
thousands)
|
|
2007
|
|
$
|
29,557
|
2008
|
|
|
29,321
|
2009
|
|
|
28,396
|
2010
|
|
|
27,794
|
2011
|
|
|
27,812
|
2012
and thereafter
|
|
|
29,603
|
Total
|
|
$
|
172,483
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
|
|
(In
thousands)
|
|
||||
Property
and Equipment:
|
|
|
|
|
|
||
Software
and other
|
|
$
|
629
|
|
$
|
634
|
|
Test
equipment
|
|
|
6,895
|
|
|
9,125
|
|
Computer
equipment
|
|
|
4,331
|
|
|
4,331
|
|
Leasehold
improvements
|
|
|
4
|
|
|
--
|
|
Office
furniture and equipment
|
|
|
5,232
|
|
|
5,232
|
|
|
|
$
|
17,091
|
|
$
|
19,322
|
|
Accumulated
depreciation and amortization
|
|
|
(17,091
|
)
|
|
(17,835
|
)
|
Total
property and equipment, net
|
|
$
|
--
|
|
$
|
1,487
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
(In
thousands)
|
|
|||||||
Current:
|
|
|
|
|
|
|
|
|||
Federal
|
|
$
|
22,050
|
|
$
|
--
|
|
$
|
--
|
|
State
|
|
|
375
|
|
|
355
|
|
|
221
|
|
Foreign
|
|
|
11,012
|
|
|
8,826
|
|
(51,590
|
)
|
|
Total
current
|
|
|
33,437
|
|
|
9,181
|
|
(51,369
|
)
|
|
Deferred:
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
(10,622)
|
|
|
4,683
|
|
|
19,861
|
|
State
|
|
|
--
|
|
(620
|
)
|
|
35,274
|
|
|
Foreign
|
|
|
--
|
|
|
--
|
|
|
--
|
|
Total
deferred
|
|
|
(10,622)
|
|
|
4,063
|
|
|
55,135
|
|
Charge
in lieu of taxes attributable to employer stock option
plans
|
|
|
34,820
|
|
|
11,845
|
|
|
8,488
|
|
Provision
for income taxes
|
|
$
|
57,635
|
|
$
|
25,089
|
|
$
|
12,254
|
|
Year
Ended
|
Year
Ended
|
Year
Ended
|
||||||||
January
29,
|
January
30,
|
January
25,
|
||||||||
2006
|
2005
|
2004
|
||||||||
(In
thousands)
|
||||||||||
Domestic
|
|
$
|
54,955
|
|
$
|
9,556
|
$
|
(17,816
|
)
|
|
Foreign
|
|
|
305,266
|
|
|
115,889
|
|
|
104,489
|
|
|
|
$
|
360,221
|
|
$
|
125,445
|
|
$
|
86,673
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
(In
thousands)
|
|
|||||||
Tax
expense computed at Federal Statutory Rate
|
|
$
|
126,077
|
|
$
|
43,906
|
|
$
|
30,336
|
|
State
income taxes (benefit), net of federal tax effect
|
|
|
861
|
|
|
230
|
|
|
544
|
|
Foreign
tax rate differential
|
|
|
(57,286)
|
|
(8,462
|
)
|
|
(11,671
|
)
|
|
Research
and experimental credit
|
|
|
(12,210)
|
|
(10,710
|
)
|
|
(5,230
|
)
|
|
In-process
research and development
|
|
|
--
|
|
|
--
|
|
|
1,225
|
|
Change
in estimates
|
|
|
--
|
|
|
--
|
|
(36,766
|
)
|
|
Increase
in beginning of year valuation allowance
|
|
|
--
|
|
|
--
|
|
|
33,599
|
|
Other
|
|
|
193
|
|
|
125
|
|
|
217
|
|
Provision
for income taxes
|
|
$
|
57,635
|
|
$
|
25,089
|
|
$
|
12,254
|
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
Deferred
tax assets:
|
|
(In
thousands)
|
|
||||
Net
operating loss carryforwards
|
|
$
|
138,541
|
|
$
|
101,238
|
|
Accruals
and reserves, not currently deductible for tax purposes
|
|
|
12,438
|
|
|
13,373
|
|
Property,
equipment and intangible assets
|
|
|
16,928
|
|
|
17,182
|
|
Research
and other tax credit carryforwards
|
|
|
146,089
|
|
|
113,856
|
|
Gross
deferred tax assets
|
|
|
313,996
|
|
|
245,649
|
|
Less
valuation allowance
|
|
|
(230,707)
|
|
(190,563
|
)
|
|
Net
deferred tax assets
|
|
|
83,289
|
|
|
55,086
|
|
Deferred
tax liabilities:
|
|
|
|
|
|
|
|
Unremitted
earnings of foreign subsidiaries
|
|
|
(90,156)
|
|
(72,575
|
)
|
|
Net
deferred tax liability
|
|
$
|
(6,867)
|
$
|
(17,489
|
)
|
|
|
GPU
|
|
MCP
|
|
Handheld
GPU
|
|
CE
|
|
All
Other
|
|
Consolidated
|
|
||||||
|
|
(In
thousands)
|
|
||||||||||||||||
Twelve
Months Ended January
29, 2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
1,654,397
|
|
$
|
352,319
|
|
$
|
58,745
|
|
$
|
170,222
|
|
$
|
140,004
|
|
$
|
2,375,687
|
|
Depreciation
and amortization expense
|
|
$
|
33,080
|
|
$
|
12,092
|
|
$
|
12,480
|
|
$
|
1,552
|
|
$
|
30,817
|
|
$
|
90,021
|
|
Operating
income (loss)
|
|
$
|
370,636
|
|
$
|
32,865
|
|
$
|
(34,922
|
)
|
$
|
83,881
|
|
$
|
(112,363
|
)
|
$
|
340,097
|
|
Twelve
Months Ended January 30, 2005:
|
|
|
|||||||||||||||||
Revenue
|
|
$
|
1,348,968
|
|
$
|
175,663
|
|
$
|
45,921
|
|
$
|
259,968
|
|
$
|
179,513
|
|
$
|
2,010,033
|
|
Depreciation
and amortization expense
|
|
$
|
32,849
|
|
$
|
12,824
|
|
$
|
11,620
|
|
$
|
880
|
|
$
|
32,643
|
|
$
|
90,816
|
|
Operating
income (loss)
|
|
$
|
178,597
|
|
$
|
(39,912
|
)
|
$
|
(37,532
|
)
|
$
|
107,901
|
|
$
|
(95,461
|
)
|
$
|
113,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Twelve
Months Ended January 25, 2004:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue
|
|
$
|
1,259,802
|
|
$
|
162,435
|
|
$
|
9,009
|
|
$
|
280,134
|
|
$
|
111,565
|
|
$
|
1,822,945
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|||
|
|
January
29,
|
|
January
30,
|
|
January
25,
|
|
|||
|
|
2006
|
|
2005
|
|
2004
|
|
|||
|
|
(In
thousands)
|
|
|||||||
Revenue:
|
|
|
|
|||||||
United
States
|
|
$
|
340,598
|
|
$
|
473,721
|
|
$
|
444,510
|
|
Other
Americas
|
|
|
38,572
|
|
|
11,045
|
|
|
6,359
|
|
China
|
|
|
401,612
|
|
|
269,306
|
|
|
280,975
|
|
Taiwan
|
|
|
1,131,784
|
|
|
883,346
|
|
|
834,511
|
|
Other
Asia Pacific
|
|
|
250,844
|
|
|
169,888
|
|
|
149,843
|
|
Europe
|
|
|
212,277
|
|
|
202,727
|
|
|
106,747
|
|
Total
revenue
|
|
$
|
2,375,687
|
|
$
|
2,010,033
|
|
$
|
1,822,945
|
|
|
|
January
29,
|
|
January
30,
|
|
||
|
|
2006
|
|
2005
|
|
||
|
|
(In
thousands)
|
|
||||
Long-lived
assets
|
|
|
|
||||
United
States
|
|
$
|
161,505
|
|
$
|
169,872
|
|
Other
Americas
|
|
|
609
|
|
|
--
|
|
China
|
|
|
4,443
|
|
|
1,030
|
|
Taiwan
|
|
|
1,020
|
|
|
951
|
|
Other
Asia Pacific
|
|
|
7,670
|
|
|
3,123
|
|
Europe
|
|
|
2,905
|
|
|
3,979
|
|
Total
long-lived assets
|
|
$
|
178,152
|
|
$
|
178,955
|
|
|
Year
Ended
|
Year
Ended
|
Year
Ended
|
||
|
January
29,
|
January
30,
|
January
25,
|
||
|
2006
|
2005
|
2004
|
||
Revenue:
|
|
|
|
||
Customer
A
|
8%
|
9%
|
12%
|
||
Customer
B
|
5%
|
13%
|
15%
|
||
Customer
C
|
6%
|
8%
|
12%
|
||
Customer
D
|
14%
|
18%
|
21%
|
||
Customer
E
|
12%
|
7%
|
9%
|
|
January
29,
|
January
30,
|
|
|
2006
|
2005
|
|
Accounts
Receivable:
|
|
|
|
Customer
A
|
8%
|
13%
|
|
Customer
B
|
8%
|
14%
|
|
Customer
C
|
11%
|
--%
|
|
|
Fiscal
2006
Quarters
Ended
|
|
|||||||||||
|
|
Jan.
29, 2006
|
|
Oct.
30, 2005
|
|
July
31, 2005
|
|
May
1, 2005
|
|
|||||
|
|
(In
thousands, except per share data)
|
|
|||||||||||
Statement
of Operations Data:
|
|
|
|
|
|
|
|
|
|
|||||
Revenue
|
|
$
|
633,614
|
|
$
|
583,415
|
|
$
|
574,812
|
|
$
|
583,846
|
|
|
Cost
of revenue
|
|
$
|
378,674
|
|
$
|
355,247
|
|
$
|
357,278
|
|
$
|
373,693
|
|
|
Gross
profit
|
|
$
|
254,940
|
|
$
|
228,168
|
|
$
|
217,534
|
|
$
|
210,153
|
|
|
Net
income
|
|
$
|
98,052
|
|
$
|
65,253
|
|
$
|
74,837
|
|
$
|
64,444
|
|
|
Basic
net income per share
|
|
$
|
0.57
|
|
$
|
0.38
|
|
$
|
0.44
|
|
$
|
0.38
|
|
|
Diluted
net income per share
|
|
$
|
0.53
|
|
$
|
0.36
|
|
$
|
0.41
|
|
$
|
0.36
|
|
|
|
Fiscal
2005
Quarters
Ended
|
|
|||||||||||
|
|
Jan.
30, 2005
|
|
Oct.
24, 2004
|
|
July
25, 2004
|
|
April
25, 2004
|
|
|||||
|
|
(In
thousands, except per share data)
|
|
|||||||||||
Statement
of Operations Data:
|
|
|
|
|
|
|
|
|
|
|||||
Revenue
|
|
$
|
566,476
|
|
$
|
515,591
|
|
$
|
456,061
|
|
$
|
471,905
|
|
|
Cost
of revenue
|
|
$
|
372,661
|
|
$
|
348,849
|
|
$
|
315,968
|
|
$
|
323,069
|
|
|
Gross
profit
|
|
$
|
193,815
|
|
$
|
166,742
|
|
$
|
140,093
|
|
$
|
148,836
|
|
|
Net
income
|
|
$
|
48,009
|
|
$
|
25,879
|
|
$
|
5,119
|
|
$
|
21,349
|
|
|
Basic
net income per share
|
|
$
|
0.29
|
|
$
|
0.16
|
|
$
|
0.03
|
|
$
|
0.13
|
|
|
Diluted
net income per share
|
|
$
|
0.27
|
|
$
|
0.15
|
|
$
|
0.03
|
|
$
|
0.12
|
|
|
Balance
at Beginning of Period
|
|
Additions
(3)
|
|
Deductions
|
|
Balance
at End of
Period
|
|
|||||
|
|
(In
thousands)
|
|
||||||||||
Year
ended January 29, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for sales returns and allowances
|
|
$
|
11,687
|
|
$
|
35,127
|
|
$
|
(36,575)
(1
|
)
|
$
|
10,239
|
|
Allowance
for doubtful accounts
|
|
$
|
1,466
|
|
$
|
(492
|
)
|
$
|
(376)
(2
|
)
|
$
|
598
|
|
Year
ended January 30, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for sales returns and allowances
|
|
$
|
9,421
|
|
$
|
22,463
|
|
$
|
(20,197)
(1
|
)
|
$
|
11,687
|
|
Allowance
for doubtful accounts
|
|
$
|
2,310
|
|
$
|
(844
|
)
|
$
|
--
|
$
|
1,466
|
|
|
Year
ended January 25, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for sales returns and allowances
|
|
$
|
13,228
|
|
$
|
23,796
|
|
$
|
(27,603)
(1
|
)
|
$
|
9,421
|
|
Allowance
for doubtful accounts
|
|
$
|
4,240
|
|
$
|
731
|
|
$
|
(2,661)
(2
|
)
|
$
|
2,310
|
|
EXHIBIT
INDEX
|
||||||
Exhibit
No.
|
Exhibit
Description
|
Form
|
File
Number
|
Exhibit
|
Filing
Date
|
Filed
Herewith
|
|
|
|
|
|
|
|
2.1
|
Asset
Purchase Agreement, dated as of December 15, 2000, by and among
NVIDIA
Corporation, NVIDIA US Investment Company and 3dfx Interactive,
Inc.
|
10-K
|
0-23985
|
2.1
|
4/27/01
|
|
3.1
|
Amended
and Restated Certificate of Incorporation
|
S-8
|
333-74905
|
4.1
|
3/23/99
|
|
3.2
|
Certificate
of Amendment of Amended and Restated Certificate of
Incorporation
|
10-Q
|
0-23985
|
3.4
|
9/10/02
|
|
3.3
|
Bylaws
of NVIDIA Corporation, Amended and Restated as of March 7,
2006
|
*
|
||||
4.1
|
Reference
is made to Exhibits 3.1, 3.2 and 3.3
|
|
|
|
|
|
4.2
|
Specimen
Stock Certificate
|
S-1
|
333-47495
|
4.2
|
4/24/98
|
|
4.3
|
Second
Amended and Restated Investors’ Rights Agreement, dated August 19, 1997
between the Company and the parties indicated thereto and First
Amendment
to Second Amended and Restated Investors’ Rights Agreement, dated July 22,
1998
|
S-1
|
333-47495
|
4.3
|
11/20/98
|
|
4.4
|
Second
Amendment to Second Amended and Restated Investors’ Rights Agreement,
dated April 12, 1999
|
10-Q
|
0-23985
|
4.4
|
6/15/99
|
|
10.1
|
Form
of Indemnity Agreement between NVIDIA Corporation and each of its
directors and officers
|
8-K
|
0-23985
|
|
3/7/06
|
|
10.2+
|
1998
Equity Incentive Plan, as amended
|
8-K
|
0-23985
|
10.2
|
3/13/06
|
|
10.3+
|
1998
Equity Incentive Plan ISO, as amended
|
10-Q
|
0-23985
|
10.5
|
11/22/04
|
|
10.4+
|
1998
Equity Incentive Plan NSO, as amended
|
10-Q
|
0-23985
|
10.6
|
11/22/04
|
|
10.5+
|
Certificate
of Stock Option Grant
|
10-Q
|
0-23985
|
10.7
|
11/22/04
|
|
10.6+
|
1998
Employee Stock Purchase Plan, as amended
|
S-8
|
333-51520
|
99.4
|
12/8/00
|
|
10.7+
|
Form
of Employee Stock Purchase Plan Offering, as amended
|
S-8
|
333-100010
|
99.5
|
9/23/02
|
|
10.8+
|
Form
of Employee Stock Purchase Plan Offering, as amended - International
Employees
|
S-8
|
333-100010
|
99.6
|
9/23/02
|
|
10.9+
|
1998
Non-Employee Directors’ Stock Option Plan, as amended
|
10-Q/A
|
0-23985
|
10.7
|
7/03/02
|
|
EXHIBIT
INDEX
|
||||||
(CONTINUED)
|
||||||
Exhibit
No.
|
Exhibit
Description
|
Form
|
File
Number
|
Exhibit
|
Filing
Date
|
Filed Herewith |
10.10+
|
1998
Non-Employee Directors’ Stock Option Plan (Annual Grant - Board Service),
as amended
|
10-Q
|
0-23985
|
10.1
|
11/22/04
|
|
10.11+
|
1998
Non-Employee Directors’ Stock Option Plan (Committee Grant - Committee
Service), as amended
|
10-Q
|
0-23985
|
10.2
|
11/22/04
|
|
10.12+
|
1998
Non-Employee Directors’ Stock Option Plan (Initial Grant)
|
10-Q
|
0-23985
|
10.3
|
11/22/04
|
|
10.13+
|
2000
Nonstatutory Equity Incentive Plan, as amended
|
10-K
|
0-23985
|
10.11
|
4/25/03
|
|
10.14
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building A
|
S-3/A
#1
|
333-33560
|
10.1
|
4/20/00
|
|
10.15
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building B
|
S-3/A
#1
|
333-33560
|
10.2
|
4/20/00
|
|
10.16
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building C
|
S-3/A
#1
|
333-33560
|
10.3
|
4/20/00
|
|
10.17
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building D
|
S-3/A
#1
|
333-33560
|
10.4
|
4/20/00
|
|
10.18+
|
NVIDIA
Corporation Fiscal Year 2006 Variable Compensation Plan
|
8-K
|
0-23985
|
10.1
|
5/13/06
|
|
21.1
|
List
of Registrant’s Subsidiaries
|
|
|
|
|
*
|
23.1
|
Consent
of PricewaterhouseCoopers LLP
|
|
|
|
|
*
|
23.2
|
Consent
of KPMG LLP
|
|
|
|
|
*
|
24.1
|
Power
of Attorney (included in signature page)
|
|
|
|
|
*
|
31.1
|
Rule 13a-14(a) Certification
of Chief Executive Office
|
|
|
|
|
*
|
31.2
|
Rule 13a-14(a) Certification
of the Chief Financial Officer
|
|
|
|
|
*
|
32.1#
|
Statement
of the Chief Executive Officer under Rule 13a - 14(b) (18 U.S.C
Section 1350)
|
|
|
|
|
*
|
32.2#
|
Statement
of the Chief Financial Officer under Rule 13a - 14(b) (18 U.S.C
Section 1350)
|
|
|
|
|
*
|
Signature
|
Title
|
Date
|
||
|
|
|
||
|
President,
Chief Executive Officer
|
|
||
/s/
JEN-HSUN HUANG
|
and
Director (Principal Executive
|
|
||
Jen-Hsun
Huang
|
Officer)
|
March
16, 2006
|
||
|
|
|
||
|
|
|
||
/s/
MARVIN D. BURKETT
|
Chief
Financial Officer (Principal
|
|
||
Marvin
D. Burkett
|
Financial
and Accounting Officer)
|
March
16, 2006
|
||
|
|
|
||
|
|
|
||
/s/
TENCH COXE
|
|
|
||
Tench
Coxe
|
Director
|
March
16, 2006
|
||
|
|
|
||
|
|
|
||
/s/
STEVEN CHU
|
|
|
||
Steven
Chu
|
Director
|
March
13, 2006
|
Signature
|
Title
|
Date
|
||
/s/
JAMES C. GAITHER
|
|
|
||
James
C. Gaither
|
Director
|
March
16, 2006
|
||
|
|
|
||
|
|
|
||
/s/
HARVEY C. JONES
|
|
March
13, 2006
|
||
Harvey
C. Jones
|
Director
|
|
||
|
||||
|
|
|
||
/s/
MARK L. PERRY
|
|
|
||
Mark
L. Perry
|
Director
|
March
16, 2006
|
||
|
|
|
||
|
|
|
||
/s/
WILLIAM J. MILLER
|
|
|
||
William
J. Miller
|
Director
|
March
16, 2006
|
||
|
|
|
||
|
|
|
||
/s/
A. BROOKE SEAWELL
|
|
|
||
A.
Brooke Seawell
|
Director
|
March 16,
2006
|
||
|
|
|
||
|
|
|
||
|
|
|||
Mark
A. Stevens
|
Director
|
|||
|
|
EXHIBIT
INDEX
|
||||||
Exhibit
No.
|
Exhibit
Description
|
Form
|
File
Number
|
Exhibit
|
Filing
Date
|
Filed
Herewith
|
|
|
|
|
|
|
|
2.1
|
Asset
Purchase Agreement, dated as of December 15, 2000, by and among
NVIDIA
Corporation, NVIDIA US Investment Company and 3dfx Interactive,
Inc.
|
10-K
|
0-23985
|
2.1
|
4/27/01
|
|
3.1
|
Amended
and Restated Certificate of Incorporation
|
S-8
|
333-74905
|
4.1
|
3/23/99
|
|
3.2
|
Certificate
of Amendment of Amended and Restated Certificate of
Incorporation
|
10-Q
|
0-23985
|
3.4
|
9/10/02
|
|
3.3
|
Bylaws
of NVIDIA Corporation, Amended and Restated as of March 7,
2006
|
*
|
||||
4.1
|
Reference
is made to Exhibits 3.1, 3.2 and 3.3
|
|
|
|
|
|
4.2
|
Specimen
Stock Certificate
|
S-1
|
333-47495
|
4.2
|
4/24/98
|
|
4.3
|
Second
Amended and Restated Investors’ Rights Agreement, dated August 19, 1997
between the Company and the parties indicated thereto and First
Amendment
to Second Amended and Restated Investors’ Rights Agreement, dated July 22,
1998
|
S-1
|
333-47495
|
4.3
|
11/20/98
|
|
4.4
|
Second
Amendment to Second Amended and Restated Investors’ Rights Agreement,
dated April 12, 1999
|
10-Q
|
0-23985
|
4.4
|
6/15/99
|
|
10.1
|
Form
of Indemnity Agreement between NVIDIA Corporation and each of its
directors and officers
|
8-K
|
0-23985
|
|
3/7/06
|
|
10.2+
|
1998
Equity Incentive Plan, as amended
|
8-K
|
0-23985
|
10.2
|
3/13/06
|
|
10.3+
|
1998
Equity Incentive Plan ISO, as amended
|
10-Q
|
0-23985
|
10.5
|
11/22/04
|
|
10.4+
|
1998
Equity Incentive Plan NSO, as amended
|
10-Q
|
0-23985
|
10.6
|
11/22/04
|
|
10.5+
|
Certificate
of Stock Option Grant
|
10-Q
|
0-23985
|
10.7
|
11/22/04
|
|
10.6+
|
1998
Employee Stock Purchase Plan, as amended
|
S-8
|
333-51520
|
99.4
|
12/8/00
|
|
10.7+
|
Form
of Employee Stock Purchase Plan Offering, as amended
|
S-8
|
333-100010
|
99.5
|
9/23/02
|
|
10.8+
|
Form
of Employee Stock Purchase Plan Offering, as amended - International
Employees
|
S-8
|
333-100010
|
99.6
|
9/23/02
|
|
10.9+
|
1998
Non-Employee Directors’ Stock Option Plan, as amended
|
10-Q/A
|
0-23985
|
10.7
|
7/03/02
|
|
EXHIBIT
INDEX
|
||||||
(CONTINUED)
|
||||||
Exhibit
No.
|
Exhibit
Description
|
Form
|
File
Number
|
Exhibit
|
Filing
Date
|
Filed Herewith |
10.10+
|
1998
Non-Employee Directors’ Stock Option Plan (Annual Grant - Board Service),
as amended
|
10-Q
|
0-23985
|
10.1
|
11/22/04
|
|
10.11+
|
1998
Non-Employee Directors’ Stock Option Plan (Committee Grant - Committee
Service), as amended
|
10-Q
|
0-23985
|
10.2
|
11/22/04
|
|
10.12+
|
1998
Non-Employee Directors’ Stock Option Plan (Initial Grant)
|
10-Q
|
0-23985
|
10.3
|
11/22/04
|
|
10.13+
|
2000
Nonstatutory Equity Incentive Plan, as amended
|
10-K
|
0-23985
|
10.11
|
4/25/03
|
|
10.14
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building A
|
S-3/A
#1
|
333-33560
|
10.1
|
4/20/00
|
|
10.15
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building B
|
S-3/A
#1
|
333-33560
|
10.2
|
4/20/00
|
|
10.16
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building C
|
S-3/A
#1
|
333-33560
|
10.3
|
4/20/00
|
|
10.17
|
Lease
dated April 4, 2000 between NVIDIA Corporation and Sobrato Interests
III
for Building D
|
S-3/A
#1
|
333-33560
|
10.4
|
4/20/00
|
|
10.18+
|
NVIDIA
Corporation Fiscal Year 2006 Variable Compensation Plan
|
8-K
|
0-23985
|
10.1
|
5/13/06
|
|
21.1
|
List
of Registrant’s Subsidiaries
|
|
|
|
|
*
|
23.1
|
Consent
of PricewaterhouseCoopers LLP
|
|
|
|
|
*
|
23.2
|
Consent
of KPMG LLP
|
|
|
|
|
*
|
24.1
|
Power
of Attorney (included in signature page)
|
|
|
|
|
*
|
31.1
|
Rule 13a-14(a) Certification
of Chief Executive Office
|
|
|
|
|
*
|
31.2
|
Rule 13a-14(a) Certification
of the Chief Financial Officer
|
|
|
|
|
*
|
32.1#
|
Statement
of the Chief Executive Officer under Rule 13a - 14(b) (18 U.S.C
Section 1350)
|
|
|
|
|
*
|
32.2#
|
Statement
of the Chief Financial Officer under Rule 13a - 14(b) (18 U.S.C
Section 1350)
|
|
|
|
|
*
|