SEC v NVIDIA CORPORATION RELEASE NO.: AAER-1859


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Keywords & Phrases

CaseNo: 34-48480, Defendant: Nvidia Corporation Release No.: AAER-1859, Plaintiff: SEC, State: OR Oregon, UniqueCaseRef: SEC>34-48480, Nvidia, Supplier, Agreement, Costs, Commission, Exchange Act, Gross, Higher Prices, Recording, Credits, Respondent, Restatement, Income, Securities Exchange Act, Accounting, Reporting, Earnings, Amount, Nvidia Corporation, Cease-and-desist Proceedings, Net Income, Gross Margin, Cfo, Pursuant, Consensus, Transaction, Gross Profit, Repay, Nvidia Employee, Separate Agreements , ContentID: 120255631

Case Documents

2003-09-11

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 132921

5 pages
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Total Documents: 1 document , 5 pages

Price: $ 19.95

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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

SUPPLIER
AGREEMENT
COSTS
COMMISSION
EXCHANGE ACT
GROSS
HIGHER PRICES
RECORDING
CREDITS
RESPONDENT
RESTATEMENT
INCOME
SECURITIES EXCHANGE ACT
ACCOUNTING
REPORTING
EARNINGS
AMOUNT
NVIDIA CORPORATION
CEASE-AND-DESIST PROCEEDINGS
NET INCOME
GROSS MARGIN
CFO
PURSUANT
CONSENSUS
TRANSACTION
GROSS PROFIT
REPAY
NVIDIA EMPLOYEE
SEPARATE AGREEMENTS

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 48480 / September 11, 2003

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1859 / September 11, 2003

ADMINISTRATIVE PROCEEDING
File No. 3-11255
     _________________________________________________________________


   In the Matter of

   NVIDIA CORPORATION,

   Respondent

     _________________________________________________________________

   ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND
   IMPOSING A CEASE-AND-DESIST ORDER PURSUANT TO SECTION 21C OF THE
   SECURITIES EXCHANGE ACT OF 1934

I.

   The Securities and Exchange Commission ("Commission") deems it
   appropriate that cease-and-desist proceedings be, and hereby are,
   instituted pursuant to Section 21C of the Securities Exchange Act of
   1934 ("Exchange Act"), against Nvidia Corporation ("Nvidia" or
   "Respondent").

II.

   In anticipation of the institution of these proceedings, Respondent
   has submitted an Offer of Settlement (the "Offer") which the
   Commission has determined to accept. Solely for the purpose of these
   proceedings and any other proceedings brought by or on behalf of the
   Commission, or to which the Commission is a party, and without
   admitting or denying the findingsherein, except as to the Commission's
   jurisdiction over them and the subject matter of these proceedings,
   which are admitted, Respondent consents to the entry of this Order
   Instituting Cease-and-Desist Proceedings, Making Findings, and
   Imposing a Cease-and-Desist Order Pursuant to Section 21C of the
   Securities Exchange Act of 1934 ("Order") as set forth below.

SNIPPETS:

ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND IMPOSING A

The Securities and Exchange Commission deems it appropriate that cease-and-desist proceedings

In anticipation of the institution of these proceedings, Respondent has submitted an Offer of

This matter involves false financial reporting by Nvidia Corporation, a developer and

The restatement revealed that Nvidia had overstated its financial results for the quarter,

Nvidia issued the restatement in part because it had inflated its quarterly results by

By recording the cost reduction, but not the corresponding agreement to pay higher prices in

In order to address this anticipated shortfall, Nvidia's senior management immediately

These employees communicated with Nvidia's CFO to ensure that the amount of cost savings

Accordingly, on March 30, 2000, Nvidia's supplier made a written proposal which offered to

In accordance with generally accepted accounting principles, and specifically Statement of

Nvidia's CFO directed the Nvidia employee to separate the arrangement into two separate

In the first of the two separate agreements, which was signed on April 3, 2000 by an Nvidia

Among the record financial results reported, Nvidia highlighted the "substantial growth in


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