For the third quarter of fiscal 2008, revenue increased to a record $1.12 billion compared to $820.6 million for the third quarter of fiscal 2007, an increase of 36 percent. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of fiscal 2008 was a record $235.7 million, or $0.38 per diluted share, an increase of 121 percent compared to the third quarter of fiscal 2007. GAAP gross margin improved by 550 basis points from a year ago to a record 46.2 percent.

Non-GAAP net income for the third quarter of fiscal 2008, which excludes stock-based compensation charges and the associated tax impact, was $264.2 million, or $0.44 per diluted share, an increase of 77 percent compared to the third quarter of fiscal 2007. Non-GAAP gross margin improved to a record 46.4 percent, an increase of 350 basis points from a year ago.

For the nine months ended October 28, 2007, revenue increased to a record $2.90 billion compared to $2.19 billion for the nine months ended October 29, 2006, an increase of 32 percent. GAAP net income for the nine months ended October 28, 2007 was $540.7 million, or $0.89 per diluted share, compared to $285.3 million, or $0.50 per diluted share, for the nine months ended October 29, 2006.

Non-GAAP net income for the nine months ended October 28, 2007, which excludes stock-based compensation charges and the associated tax impact was $626.7 million, or $1.06 per diluted share, compared to $372.3 million, or $0.66 per diluted share, for the nine months ended October 29, 2006.

"We are very proud to have achieved our first billion dollar quarter. And, while it is a wonderful milestone to reach, we believe this is just the beginning," said Jen-Hsun Huang, president and CEO of NVIDIA. "Our core businesses are continuing to grow as the GPU becomes increasingly central to today's computing experience in both the consumer and professional market segments."

Mr. Huang added: "This is the era of visual computing and NVIDIA is at the forefront. People want a delightful, compelling experience when they interact with their computing devices, whether it's on a phone, notebook, game console, or workstation. NVIDIA is leading the way in making this experience more intuitive and rewarding through our relentless pace of innovation and focus on execution."