SANTA CLARA, Calif., May 16, 2019 NVIDIA (NASDAQ: NVDA)
- Revenue is expected to be $2.55 billion, plus or minus 2 percent.
- GAAP and non-GAAP gross margins are expected to be 59.2 percent and 59.5 percent, respectively, plus or minus 50 basis points.
- GAAP and non-GAAP operating expenses are expected to be approximately $985 million and $765 million, respectively.
- GAAP and non-GAAP other income and expense are both expected to be income of approximately $27 million.
- GAAP and non-GAAP tax rates are both expected to be 10 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.
Highlights
During the quarter, NVIDIA announced that it reached a definitive agreement to acquire Mellanox Technologies, Ltd. for $125 per share in cash, representing a total enterprise value of approximately $6.9 billion. Once complete, the combination is expected to be immediately accretive to NVIDIA’s non-GAAP gross margin, non-GAAP earnings per share, and free cash flow. The transaction is expected to close by the end of the calendar year.