NVIDIA follows the footsteps of Intel, the company shared during its conference call yesterday that the future is uncertain, but that they will keep investing in future revenues. The company will try to invest its way out of the recession, by focusing on areas that will lead to growth.
Glen Yeung – Citigroup
Marv I hear your point that you don’t want to impair your future growth by reducing OpEx to too low a level but one could argue that with sales down 60% year-on-year and you know with a pretty uncertain end market out there the future growth isn’t hurt anyway. So I guess when we think about your business going forward what would you need to see? I mean is there some lack of growth element out there that says, “Jeez, I’ve got to cut anyway because it’s just so bad.”
Marvin D. Burkett
Well, we’re always looking at things like that. That’s the job of management to look at them. You know if you were to tell me that the current economic environment is going to continue for the next ten years, then lots of people not only us but other companies are going to have to restructure their businesses. If you’re telling me that the economic environment will change very quickly that’s an early holding on till it comes back. So I don’t know how long this economic environment is going to take.
But I do know the only way out of recessions and significant recessions like this is not by cutting your future. The way out of the recession is by investing in future revenues. So we want to continue to do that. As long as we’re not burning through significant cash, and as long as we’re investing in the right places, that’s more significant to me. So I don’t know what’s going to happen in the economic environment.
And the investments that we make, Glen, we want to make sure that we’ve scrutinized all of our investments. And we’ve asked ourselves are we investing in areas that’s going to lead us to growth? And if it’s not going to lead us to growth there’s no point investing in it. And so we have to believe in what we believe. And once we believe it we’re going to stay committed to it. Obviously environments change and we’ll continue to reevaluate but based on what we see right now we’re making good decisions.