Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the NVIDIA Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. As a reminder, this call is being recorded, Thursday, August 6, 2015. I will now turn the call over to Mr. Arnab Chanda, Head of Investor Relations at NVIDIA. Mr. Chanda, you may begin your conference.

Thank you. Good afternoon, everyone and welcome to NVIDIA's conference call for the second quarter of fiscal 2016. With me on the call today from NVIDIA are Jen-Hsun Huang, President and Chief Executive Officer and Colette Kress, Executive Vice President and Chief Financial Officer. I'd like to remind you that today's call is being webcast live on NVIDIA's Investor Relations website. It is also being recorded. You can hear a replay by telephone until 13th of August, 2015. The webcast will be available for replay up until next quarter's conference call to discuss Q3 financial results. The content of today's call is NVIDIA's property. It cannot be reproduced or transcribed without our prior written consent. During the course of this call, we may make forward-looking statements based on current expectations. These forward-looking statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. For a discussion of factors that could affect our future financial results and business, please refer to the disclosure in today's earnings release, our most recent forms 10-K and 10-Q, and the reports that we may file on Form 8-K with the Securities and Exchange Commission. All our statements are made as of today, the 6th of August, 2015, based on information currently available to us. Except as required by law, we assume no obligation to update any such statements. During this call, we will discuss non-GAAP financial measures. You can find a reconciliation of these non-GAAP financial measures to GAAP financial measures in our CFO commentary, which is posted on our website. With that, let me turn the call over to Colette. Colette M. Kress - Chief Financial Officer & Executive Vice President: Thanks, Arnab. Second quarter revenue was $1.15 billion, up 5% from a year earlier and well…

And our first question comes from the line of Harlan Sur with JPMorgan. Your line is open. Please proceed.

Hi, good afternoon. And solid job on the quarterly execution. If I look at the pipeline of blockbuster games coming down the pipe in October and November, Rainbow Six, Fallout 4, Black Ops 3 and so on, I mean, this is shaping up to be a stellar year for new game releases. And then on top of that GTX 980 Ti seems to be doing very well in the market. Why wouldn't we expect more seasonal growth in the business here for October? I guess the question is maybe offsetting that, are you guys still seeing headwinds in the enterprise and cloud or PC OEM segments in Q3?

Yeah, Harlan, there are several, I would say, four major drivers in the gaming industry. The first one is blockbuster titles, as you mentioned. The install base of game platforms is growing, so greatly that developers can now invest an enormous amount into production value of great games. In the second half you're going to see some pretty amazing games. I mean, you didn't mention Star Wars. Myself along with everybody else are practically out of our minds waiting for it. And I think this is going to be a huge game. Call of Duty, of course, Assassin's Creed, of course. Metal Gear Solid is going to be huge. The second half of the year, we're going to see some really huge games. The second dynamic is just eSports; eSports is probably the most social gaming platform that we have. And the reason for that is because you want to play with your friends. And it's also a form of gaming where milliseconds could make the difference between winning or losing, so performance of your platform matters a great deal. And it's a solely PC phenomenon. And it's a global phenomenon. In just a few years' time, eSports has doubled to almost 100 million gamers around the world. And this is, as I mentioned, is social. And so therefore, the network effect is quite important. And that's why you can imagine it doubling in just a few short years. And the larger the numbers, it just seems like the larger the numbers become. And the third driver for gaming this holiday season is the combination of several platforms coming together, finally. 4K is here. The pricing is fantastic now. Windows 10 is great. And the Skylake platform from Intel is going into production now. And then the fourth driver is a driver that we all have heard a great deal about, and surely the experience is as wonderful as the promise, is VR. And VR will go into production the second half of the year. Each one of these drivers are a pretty large scale. And so, I would agree with you that my expectation would be that gaming is going to continue to grow, and high-end gaming particularly is going to grow nicely. The guidance that we provided is guidance that we think makes sense at this time. And then, we'll report on how it turns out at the end of the quarter.

Okay. Thanks for that Jen-Hsun. And then, the team has got this great pipeline of auto design wins. And with the new model changeover that's happening now that you guys mentioned in your prepared remarks, how is this expanding the number of new models that are rolling out here in the second half of the year, that are using the Tegra platform, and that you'll also be recognizing revenue on a go-forward basis? I guess what I'm trying to figure out is, is auto contributing to the growth in Q3 and second half of this year?

Let's see. Well, auto is growing over 70% a year. We have eight million cars on the road now. We have 30 million more cars coming with our Tegra platform in it. And our recent initiative of utilizing deep learning in our CUDA processors, the Tegra processors, for autonomous driving is really gaining a lot of traction. We're now in engagement with about 50 companies around the world developing autonomous vehicles. The advantage that we have is the ability to capture camera inputs from all around the car. In addition to other sensors from lidar to radar to sonar. And sensor fusion is just such an important part of autonomous driving that this Tegra platform, we call it the DRIVE PX platform, is really incredibly valuable to the car companies. And so, we're developing autonomous driving vehicles with many of them at the moment. And so, I expect the car business to continue to grow and hard to exactly to say how it's going to do the second half. It depends on how many cars get sold. But there's no question at all that year-over-year, the growth is going to be steady. And it's going to keep going for several years.

Thanks a lot, Jen-Hsun.

Yeah, thanks a lot, Harlan.

Our next question comes from the line of Stephen Chin with UBS. Your line is open. Please proceed.

Hi. Thanks for taking my questions. Jen-Hsun, first one for you, if I could, in terms of VR, as you mentioned that some of the new products will go into production early this year, but as far as a bigger demand inflection for that technology goes, approximately when would you think that would be really taking off in terms of unit volumes and also helping to uplift your GPU business further? And related to that, just given that you have a lot of development on the software side, as well as on the hardware products in terms of your SHIELD products, does it make sense for NVIDIA to go more vertically integrated for VR products?

So, the first question is, it's hard to say, but we know that several hundred thousand development kits were sold of the Oculus glasses. And if we just take a couple 200,000 to 300,000, they tend to require higher end GPUs because you're driving stereo. You need to have extremely low latency and you need to have 90 frames a second, so that you don't see flicker, all right. And so, those factors combined requires you to have a relatively high-end GPU. Several hundred thousand new high-end GPUs at several hundred dollars apiece adds up a bit. And that would be for the first year. It's hard to say exactly how big the VR market becomes ultimately, but if you've had a chance to try it, it's really a whole new experience. Being immersive just doesn't begin to explain how wonderful it is. And so, I think the buzz around VR, from all the people that have experienced it and the content developers that have spoken so highly of it, is consistent with the reality at this point. It's taken many years, well, many decades, frankly several decades to have brought VR to this point, and I think it surely looks like it's ready. To the question of what can we do more in VR, there's quite a bit that we can do in VR and we're working with Oculus and we're working with Valve to really integrate the entire rendering pipeline, the entire experience into a seamless one. That's an extraordinary amount of work to do already. In the other industries, we're going to see a lot of adoption in VR. This is an area where our work station business, our Quadro business is going to get a really great lift. And the reason for that, of course, is being able to see and experience a product in virtual reality before you manufacture it. And so, whether you're designing a building, or designing a car, or creating a showroom, the ability to be able to put on VR and experience it before you build it is quite an extraordinary benefit. And so, we're going to see some exciting adoption in the design community as well. So, there's plenty of work to do, plenty of innovation at the rendering layer for us to do. And so, I think that's plenty for now.

Great. Thank you for that, Jen-Hsun, and as my follow-up for Colette, on the OpEx side for the October quarter, can you talk about some of the puts and takes for the OpEx spend and what the main driver for the sequential increase for non-GAAP OpEx is? Thank you. Colette M. Kress - Chief Financial Officer & Executive Vice President: Sure, Stephen. So, when we look at Q3, Q3 has a couple key things in it, as we get ready for the holiday season, revenue-related OpEx, as we think of marketing and others, is also in our Q3. It is also the time that we take the opportunity to look at the salaries of our employees. So, our overall salary increases for worldwide do take place in Q3.

Great. Thank you very much.

Thank you. And our next question comes from the line of Vivek Arya calling from Bank of America Merrill Lynch. Your line is open. Please proceed.

Thank you for taking my question. Very good results, very good growth in gaming, but, Jen-Hsun, I just wanted to go back to the quarter you reported, I'm wondering what changed versus your original expectations, were you just too conservative before or what changed in the quarter to really create this kind of positive surprise, and how are you making sure there is no buildup of excess inventory, given just broad macro conditions seem so volatile right now?

Yeah, well, answering the second part first. We monitor sell-out in the channel literally every day. And so, that's how we manage inventory. We don't manage inventory on sell-in, we manage inventory on sell-out. And so, having our own specialized platforms, instead of selling into OEMs gives us a lot more visibility, frankly, than we've ever had before. As you know, we really changed our business model from a company that sold components to PC OEMs and OEMs, mobile OEMs. We're now focused on specialized platforms for specialized applications, and we have identified four applications where we could add a lot of value. And in each one of these four applications, we're so much closer to the marketplace that the visibility is just surely better. If you go back to the first part of your question, I think 90 days ago, just about everybody was rather uncertain about what was happening. There were a lot of changes going on around the world. Surely, there's still changes around the world, but for... (25:09 – 25:19)

Vivek, I think your plane is here.

Oh, sorry. Sorry. Please go ahead.

That's all right. It's all right. It's all right. So anyways, it's just that was the best we could do at the time and we provided the best judgment we had and it turned out to have been much better than that.

Got it. Jen-Hsun, as my follow-up, could you talk about your average content in the car? Where is it now? Where can it get to? Because I think you mentioned the 30 million cars. I think you have mentioned 25 million before. And if I take the 30 million cars and I'll tell you (25:58), it means it's roughly 10% share of all the cars that are sold in a given year, so you're penetrating just the high-end of the car. So, please talk about (26:12) what the direction is, if you could quantify that would be very useful. And then in terms of penetration, is it just the high-end or are you able to get into the midrange and on the mass market as well? Thank you.

Well, we're trying to win as much as we can, while delivering value to the customers that we select. And our value proposition, as you can imagine, tends to be where visual computing is really important. And it could be because of large surround and dynamic infotainment systems, virtual cockpits, where you've got a digital dashboard and it's rich and it's moving and infotainment's integrated into it and maps integrated into it. It might have several virtual machines that are running at the same time, so that infotainment and digital clusters are not integrated into one computer, and it provides a safety among itself. It could be in the future several computers inside the car, some in the front, some in the back, as displays become more affordable and people's expectation for rich graphics continues to grow. You could expect us to have infotainment systems, virtual clusters, as well as drive computers, that are used for driver assistance or autonomous driving. And so, there's a lot of different ways that a computer is going to be included in cars. I think largely the trend is very, very clear that in the future, the best way to add value to products is to connect them to the Internet and make them computerized, make it a software-defined product. And I think your car's going to become a software-defined car. And the amount of processing inside will continue to grow at an exponential level. And as a visual computing company, we think we could add a lot of value here. And so, I think our software content is going to continue to grow. This isn't like our parents' car industry anymore. This is really a computerized car industry. And cars are going to be supercomputers in the future.

Got it. And one last one for Colette, if I may. Cash is almost 40% of the market cap now (28:37) lot of buybacks. I'm wondering, Colette, is still that's the best use of the cash or are there other options for the large cash that you've built up? Thank you. Colette M. Kress - Chief Financial Officer & Executive Vice President: Thanks for the question. We tend to look at our cash balance, net of our debt as well, as we have about $1.5 billion outstanding debt. And then with our synthetic lease that we also just completed, we'll add on top of that. So, our net is probably a pretty good, a better barometer of what percentage of our value is associated. We've looked at our capital return program heavily. We are excited at the amount that we are returning this year, close to $800 million, which is nearly in the high percentage of our free cash flow. And we'll continue to look of opportunities for our cash, whether that be investment in the business, more capital return, and/or M&A. Thanks for the question.

Okay. Thank you.

Thank you. And our next question comes from the line of Deepon Nag calling from Macquarie Research. Your line is open. Please proceed. Deepon Nag - Macquarie Capital (USA), Inc.: Yeah, thanks a lot for taking the question. Looks like the GTX 980 Ti had a very strong quarter. And based on third-party best, again it looks like it's extremely competitive with high bandwidth memory parts from your main competition. And I think it's something we all underestimated just the value of your software and the advantage that game provides you, despite maybe some technological changes on the silicon. And maybe you could talk about your GPU roadmap for next 12 months, 18 months and whether you think your software advantage could actually allow you to maintain share even before or without an architectural change.

Yeah, Deepon, first of all, I appreciate the comment about the software, we are really, really proud of our software. And in the final analysis, a computer is not just a bunch of silicon, a computer is silicon and software and algorithms and system software and all kinds of stuff in the middle, and you can't just be a good transistor slinger, if you will, and you have to create, ultimately, a great experience. And in the final analysis NVIDIA is a visual computing company, which is everything that includes architecture and silicon and system software and algorithms and deep understanding of applications and everything in the middle and being able to optimize it across the entire stack, so, first of all, I appreciate that comment. However, it turns out that it's not solely because of our software that the Maxwell architecture delivers so much performance, even though the memory that we use is relatively available. And the reason for that is, because Maxwell includes a ground-breaking piece of memory technology inside the chip that compresses, reorders and does amazing things, so that we effectively received 1.5 times our bandwidth through amplification of compression and others. And so, it's a brand-new technique that has taken us several years to create, and as a result, we got a lot of effective bandwidth out of Maxwell because of that. The benefit of doing this approach, of course, is that we can scale it across the entire family of Maxwell GPUs, all the way from the TITAN X to the GTX 980 Ti to the GTX 980, to the GTX 970, to the GTX 960, and so we can take it all the way to the mainstream because of this technique. I think your question about long-term roadmap, I like to reserve the…

Yeah, we saw some slowdown in enterprise buying as other people have. And I would say that in the case of our workstation platform, it probably was also postponed because the new platform architecture from Intel was delayed by a little bit. And Skylake is a really excellent platform, it has a higher speed connectivity, it has the ability to support more memory and including DDR4 memory and in the space of workstation supported data set is very, very large and moving data in and out of the computer is so important, having that connectivity and IO capability is really important. And so, I think that along with everybody else, we're all delighted that Windows 10 is now out and Skylake is now ramping up production and hopefully the OEMs can launch a new line of great workstations. Long-term the way to think about it is this, and the way I look at it is Quadro is all about design and creativity, and there's no question that more and more people are using digital approaches to design things and create products. And so, so long as people design and create in digital, it's going to be a growth opportunity for Quadro. As for Tesla, it is a growing business, but it's still a lumpy business. And the reason for that is because every so often a data center comes in or a supercomputer comes in and buys tens of thousands of chips and to outfit a data center or outfit a supercomputer and so we're going to expect to see lumpiness. But the trend is clearly, clearly, is clearly visible. That accelerated computing is the way to the future. In fact, I don't think that we've ever experienced something like this, but President Obama, this last week, signed an executive…

Thanks. Deepon Nag - Macquarie Capital (USA), Inc.: Terrific.

Thank you. And our next question comes from the line of Hans Mosesmann calling with Raymond James. Your line is open. Please proceed. Hans C. Mosesmann - Raymond James & Associates, Inc.: Thanks. Hey, Jen-Hsun, can you give us the rundown on the competitive dynamics over the past quarter on the auto side? There's lots of players that are out there and it gets a little confusing, so if you can give us a rundown and who are the real guys long-term that could emerge as a competitive dynamic for you guys? Thanks.

Yeah, let's see how to answer that. I guess there's several different places in the automotive industry where innovation is happening. I think largely infotainment is a relative commodity. It is possible to build infotainment systems relatively easily; however, a virtual digital cluster, where the digital dashboard, the mapping system, the infotainment system all unifies into one virtual display. That is relatively complicated work, and the reason for that is because there's several operating systems at play, it's a very powerful virtual computer, virtual machine that's running. And the quality of software needs to be utterly exquisite; otherwise problems in one functionality like infotainment system could cause all kinds of trouble for you with your digital clusters, so that's an area where we're doing a lot of very good work and we're finding a great deal of interest. And our software capability and the performance of our processors is a real advantage. Another place where we see a lot of traction is autonomous driving. In the first implementations, of course, it is driver assistance, observing something, an object in front of the car and applying the brakes if the car's not slowing down. That's relatively easy to do. But that's far, far, far away from autonomous driving. Autonomous vehicles are going to require sensor fusion, radar's going to get involved, lidars will get involved in the future, sonars get involved, of course, and cameras all over the car. And so, this particular approach of autonomous driving, autonomous vehicle I think is a rather promising approach and is recognized around the world as a reasonable (40:42). And so, where sensor fusion comes in, the processing capability of Tegra and CUDA connected with smart cameras is a really wonderful approach going forward, and so that's one of the reasons why we're engaged with just about every autonomous platform that I know of anyways and the DRIVE PX is really doing well there. Hans C. Mosesmann - Raymond James & Associates, Inc.: Great. Thank you.

Yeah, thanks a lot, Hans.

Thank you. And our next question comes from the line of Ambrish Srivastava calling with BMO Capital Markets. Your line is open. Please proceed.

Hi, thank you. And Colette and Jen-Hsun if I missed it I apologize, I'm just trying to get a little bit more of my arms around the guidance for the third quarter. Based on the comments that you've provided, sounds like PC gaming will be up Q-over-Q and then auto's up, but what about PC OEM and the enterprise business? Thank you.

Well, the PC OEM and the enterprise business, there are reasons to be optimistic. In the PC OEM business, of course, Windows 10 has come out and before it came out there's really no reason to buy a PC in advance of it. Skylake is out, and both of these platforms should contribute to growth. But, we'll see how it turns out. We don't control the PC OEMs, and we stay very close to them and whatever opportunities comes our way we'd surely be delighted with it. With respect to enterprise, I guess your guess is as good as ours and when the enterprises come back and purchase. I think our position with workstations, Quadro visualization is surely excellent and our position with accelerated computing with Tesla is surely excellent. Both of them are highly differentiated in the marketplace and their niche is very clear and the value we deliver is very clear. And so, when the enterprise comes back and buy, I think we're going to do very well. So, I think the answer is, we should just wait and see.

For both Tesla and for Quadro, Jen-Hsun?

Both of those are highly dependent on enterprise buying cycles and enterprise purchases. And so I think, as I mentioned, I'm optimistic about both of them, I'm enthusiastic about both of their positions. And with respect to the guidance, the best thing to do is just wait and see.

Okay. Thank you.

Thank you. Our next question comes from the line of Rajvindra Gill calling from Needham and Company. Your line is open. Please proceed. Rajvindra S. Gill - Needham & Co. LLC: Yeah. Thanks for taking my question and congrats on the good results in light of the tough macro environment.

Thank you. Rajvindra S. Gill - Needham & Co. LLC: Given your new segment reporting or relatively new segment reporting, it kind of represents kind of a transformation in your business. You didn't give out the PC OEM revenue, but if I just back into it, it does seem like the PC OEM revenue is down another 50% year-over-year, if I did it correctly, after falling about 40% year-over-year in Q1. So, now the mix of the business is where PC OEM is now only 15% of sales down from, say, 30% of sales, at the start of last year. So, I just wanted to get a sense of is that correct? And the new growth segments, if you could talk a little about what's going on in gaming and auto because gaming and auto and enterprise are now almost 85% of revenue.

Yeah, Raj, first of all, I appreciate the observation. If you look at it year-to-year, and I would just use rough CEO math here, year-to-year, our OEM business, PC OEM business and mobile OEM business are down nearly $200 million. Yet, the company grew about $50 million, which basically says that the specialized platform strategy and these four applications, these four markets that we've targeted, have made up, and some, the decline of OEMs. The benefit is even better than that, of course, as you surely would know. The resilience of the business is greater. The value that we add to the marketplace is much, much greater, which will eventually reflect itself in gross margins. The business model is more resilient, and our end market engagement is much deeper. And so, I think in just about every possible way, it's a hard quality business, it's a more resilient business, and it's a business that our shareholders, frankly, would enjoy better long-term. It gives us much larger growth opportunities; whereas a long time ago, I guess maybe a couple years ago, people asked why we could grow a $4 billion graphics business in a market that was only $4.8 billion large. Well, nobody would think twice if we could grow into $100 billion gaming market. And so, if we could add more and more value to a much larger end market, I think it's just a much better company. And I think that's all, you're observing is the transformation, the successful transformation, of our business model from a component business model to OEMs to a platform model with a specialty in an area that is related to visual computing. Rajvindra S. Gill - Needham & Co. LLC: And just as a follow-up to that point, your gaming segment is now 57% of sales versus 38% of sales this time last year. And the growth rate actually accelerated year-over-year from Q1 to Q2. And I think what the market underappreciates is the gaming market itself and how fast that's growing. So, I was wondering if you could discuss, you did a little bit before, but why is the gaming market so robust and is there anything going on by region? Any color there as well in addition to your commentary earlier in the call?

There are several dynamics that are happening. And it's very, very mathematical. The first dynamic is the size of the market is growing and it's driven a lot by eSports and MOBA. This is a type of game that's quite viral and it is also very social. And it has the ability to grow to larger numbers whenever we reach larger numbers. And it has a network effect. And the reason for that is because you want to play with your friends. And if two of your friends are already playing a particular game and you want to hang out with them, and when they're playing, they're talking, and they're enjoying each other's company, they're hanging out, then the third friend's going to get invited and the fourth and the fifth and before you know it just about all your friends are playing. And so it tends to work in a social effect and it grows from large numbers. The second is the production value of games. I don't know if you've noticed or not, they're almost cinematic now. And that's made possible because of the rich algorithms that we put on top of our GPUs, we call GameWorks, because of our GPUs. And when the production value is high, it consumes a lot more GPU. It's very different than movies. A Blu-ray movie, whether it's beautiful or not so beautiful, is basically Blu-ray. But for computer games, in order to have beautiful games, you need more powerful GPUs, and so that's very mathematical. And the third is 4K displays is a lot more pixel than 1080p, 8 million pixels over 2 million pixels. It's a lot more pixels. And the number of pixels we can process is directly related to the power of the GPUs. And then all of a sudden, you add VR on top of that. And so, you need very high-resolution displays. You need two of them because you're in stereo and you also want to render it at a much, much higher frame rate. Instead of 30 frames a second, you want to render it at 90 frames a second. And so, it's times two times three. And so many of these type of experiences are driving the GPU adoption upward. And we're definitely seeing that trend. So, both the larger market and increasing adoption of higher end GPUs. And that's what you're basically seeing. Rajvindra S. Gill - Needham & Co. LLC: Excellent color. Thank you.

Thank you. Our next question comes from the line of Ross Seymore with Deutsche Bank Research. Your line is open. Please proceed.

Hi, Jen-Hsun. Given that gaming is slated to grow up over 20% year-on-year this year, how should we think about growth longer term? And Colette, how can we think about the gross margin impact from the growth of gaming?

That's a good question, Ross (sic) [Ji Yoo] (50:35). And let's see, how do you think about it? I guess the way I think about it is, it's related to the number of gamers. It's related to the production value of games. And so long as the number of gamers continue to grow and the number of gamers have practically doubled in MOBA in the last three years to almost 100 million gamers. And yet 100 million gamers is not that many gamers in the context of people who watch television. And we know that just about every young adult is a gamer today. And so, it stands to reason that gaming is going to be a very, very large industry. And almost everybody is going to game. It's about $100 billion today. It's hard to say exactly how big it's going to get. But it's hard for me to imagine that it would stay at $100 billion. And so, those things hopefully will continue to drive the growth of gaming. And our dedication to the space, the investments that we've made over the course of nearly two decades in the space, has really put us in this opportunity to benefit from this growth. Okay. Go ahead. Colette M. Kress - Chief Financial Officer & Executive Vice President: And then further on your question of gross margins for gaming, we reviewed our gross margins by our market platforms on our Analyst Day, really kind of highlighting the success of our strategy in these platforms. And so many of them have higher gross margins than our company average. So, yes, we can benefit from gaming, which does have a slightly higher gross margin company average right now. Of course, there's always mix factors that come into play each quarter. But it does help contribute to our great success that we've been showing on our gross margin over the last couple quarters.

Thank you. And sorry, yes, this is Ji Yoo for Ross Seymore. As for the follow-up question, you discussed the lumpiness of spending from customers in deep learning. We've seen CapEx cuts from the likes of cloud customers. So, what are you hearing from cloud customers in terms of slowing of their data center and cloud build-outs for the year? Or are they cutting CapEx in other areas besides data center and cloud?

I really appreciate that question. In fact, we see the most success when there's pressure on CapEx. And it seems counter intuitive, but the reason for that is this: the consumption of flops, and the need for fast searches, whether it's voice search, natural language processing and translation of voice, image search, transcoding of images, when you send video up in one resolution, they want to maybe store it or transcode it or stream it in a different resolution. The ability to take poor video and enhance it, herky-jerky video, and all of a sudden you stabilize the video and make it beautiful. All of that video processing and all of that search is going to require the data center to be much, much more powerful. And the benefit of GPUs is that by adding GPUs, you don't have to incur a great deal of expense, but you can increase the performance of your data center tremendously. Let me give you the case in point: we increased the performance of the Oak Ridge supercomputer by a factor of 10. By a factor of 10, with just 18,000 GPUs. It was a retrofit. The most powerful supercomputer in our nation today, it's a retrofit. It's a retrofit of an existing supercomputer. And so, if you could imagine retrofitting data centers with GPUs, it would increase the throughput, the computational throughput, arguably by a factor of 10 just like we've done for the Oak Ridge supercomputer. And as a result, the CapEx doesn't have to go up very much. So, that's one of the benefits of acceleration. It takes advantage of your current infrastructure, and you can improve its capability by upgrading it with a GPU.

Thank you.

Thank you.

Thank you. Our next question comes from the line of David Wong with Wells Fargo Securities. Your line is open. Please proceed.

Thanks very much. What percentage of desktops sold currently do you consider to be gaming desktops? And what would be the answer for notebooks?

David, I'm not sure – one more time, what is...?

Well, you're talking about...

In dollars, the gentleman earlier had already decoded our OEM sales. Our PC OEM sales represents only a few percentage of our total revenues now.

No.

And so, that's a way to think about it. And gaming, of course, is a very large percentage of our revenues.

No, but I'm not talking about your revenues. I'm talking about the overall market, if one considers the market of desktops. So, what percentage of units of desktops do you consider gaming, that are taking up your gaming GPUs?

I see. Very good question. Incredibly small, surprising. And the reason for that is this: most gamers buys a PC and then upgrades it maybe three, four cycles. Does that make any sense to you? They buy our GeForce cards directly from ETAIL, they take it home, they pull it out of the box, they install it into their computer, and sometimes they cut a hole in it, so that it can see the graphics card. Sometimes they paint the chassis with car paint, so that they can personalize it, fall in love with it, and they upgrade it for years to come.

Okay. Great. And on a second matter, Tesla. I think last quarter you kindly provided us the revenue. I think it was $79 million. What was it this quarter? Colette M. Kress - Chief Financial Officer & Executive Vice President: It was – hold on – in our thing. It is $62 million this quarter.

Great. Thanks very much. Colette M. Kress - Chief Financial Officer & Executive Vice President: You're welcome.

You're welcome, David.

Thank you. Our next question comes from the line of Alex Gauna with JMP Securities. Your line is open. Please proceed.

Thanks for getting me in. And congratulations on the strong quarter. Jen-Hsun, I'm wondering, you talked about 50 incremental designs in a driver assist, as well as maybe 30 more million units. Does that 50 more customers totally encompass that 30 million, or is there more on top of that to come? Thanks.

Yeah, thanks for the question, Alex. Most of the 50 are new customers. And the reason for that is because the number of companies that are working on autonomous driving cars are not just necessarily car companies. Car companies are going to invest in more and more autonomous capabilities. However, there are many companies who are creating autonomous cars that could be used as a service. And so, you're going to see the car industry bifurcate in some really exciting and interesting ways. On the one hand, car companies are going to make cars more capable and safer and more joyful to drive. On the other hand, you're going to see new startup companies, and maybe exciting startup companies, that create fleets of autonomous vehicles that are operated as a service. And so they come at the world very differently. And autonomous vehicles come in a lot of shapes and forms. They're not all passenger cars. And so, this is an area of a lot of very exciting development. And we're working with a lot of them because we have a platform that was really designed to fuse computer vision cameras from all around the car as well as radars and lidars and sonars, and be able to do path planning and all of those kind of capabilities that you're going to need for an autonomous vehicle.

Okay. Great. Congratulations again. Great quarter.

Yeah, thanks a lot, Alex.

Thank you. And our next question comes from the line of Sanjay Chaurasia calling from Nomura Research. Your line is open. Please proceed.

Hey, Jen-Hsun. One question on the gaming growth. If I look at combined discrete GPU market between NVIDIA and AMD, if my estimates are right, AMD lost roughly 300 million in discrete GPU market from 2014 to 2015. And you are gaining 300 million, roughly. So, if I look at the whole discrete gaming market between both of you, it would appear it's stable. So, how do I reconcile this and the commentary that the gaming is growing for you? Is it growing for the – between both of you or is it growing for you? I just wanted to understand how would you reconcile this?

Well, you know AMD's business a lot better than I do, surely. But I can't imagine the math working out. The GPU business is larger than it has ever been. And so, I can't imagine that being a share gain. And the applications that we're in are applications that have never been conceived as before. And so, I can't imagine it being something that's a shared gain matter. And so, whether it's in deep learning, whether it's the growth of MOBAs, the number of gamers around the world that are engaging in eSports and MOBA is surely an increase. The gaming market in Southeast Asia's growing, the gaming market in Latin America is growing, the gaming market in China continues to grow even through a slower economy. People are just getting born and they grow up and one day they discover that their other friend's game, and they get into gaming and so I think the number of gamers of the next-generation is more than the gamers of the previous generation. And I think all of that is very logical and it's kind of sensible. And so, that's kind of how we see it. And we're really not correlated at all to anything that AMD's doing anymore. Not that I...

Okay. As a follow-up question on GRID, so you're at several thousands of customers and just wondering what feedback, what issues, concerns that you have seen that may be taking longer for it to ramp?

I appreciate that. Thanks for that opportunity to answer the question. Enterprise trials surely takes a long time, but the benefit of an enterprise business is that it remains sticky for a very long time. This time last year we've deployed 100 customers and today we've deployed 300 customers. Our partnership with VMware is on full steam. You probably heard from their conference call and their commentary how enthusiastic they are about end user computing. And since Horizon supported vGPU in the last couple of quarters, the engagement across the board is just incredibly high and the pipeline is very healthy. And so, I think this is an area in enterprise computing that's just going to take time and this is a long-term bet, but there's no question in my mind that the value of virtualizing an enterprise end-to-end, because of heterogeneous computing, because of security, because data is getting so large, it is better to keep it in the data center, and because people's work styles are more mobile and more flexible than ever, these dynamics are not going to go away. And virtualization of the PC applications that are not going to go away either that are relied upon by enterprises all over the world, virtualizing those applications is really the right way to go forward in modernizing your company. And so, I have a lot of enthusiasm and faith in this product line and it appears that the rest of the IT industry is equally excited about it.

Great. Thanks so much, Jen-Hsun.

Yeah. Thank you.

Thank you. Our next question comes from the line of Craig Ellis with B. Riley & Co. Your line is open. Please proceed. Craig A. Ellis - B. Riley & Co. LLC: Thanks for taking the question and congratulations.

Thanks, Craig. Craig A. Ellis - B. Riley & Co. LLC: Jen-Hsun, just starting off with a higher level question that cycles back to Analyst Day. At Analyst Day, you highlighted four platforms with secular growth dynamics to them. With some of the softness that we've recently seen in the macro, does that have any impact on the growth that you would expect intermediate term from those four platform groups; gaming, auto, enterprise, and HPC and cloud?

Yeah, the interesting thing is wherever an enterprise gets involved, we are surely affected by slowdown. However, when our products are bought and sought out one at a time, we tend to experience what the large industry would experience. So, in the case of gaming, it's a consumer product, it's a consumer market. And people buy the product not because they can afford it, necessarily. They buy the product because they want to play the game. And so, when a new game comes out and it's too good not to play, something like Star Wars or something like Call of Duty or something like League of Legends, it's just too good not to play. People will find a way to afford one of the GeForce graphic cards. And in the case of cars, the car industry is moving forward in autonomous vehicles and cars are becoming more and more computerized and irrespective of the economy, the high-end segments of the car market seems to be doing quite well. And maybe oil prices have something to do with that as well, but we're seeing just a really exciting adoption in the higher end segments of the market where new technology is really transforming the car. And then with respect to deep learning, I think the jury is now, well, I was going to say, it's pretty clear now that deep learning has an opportunity to make a real difference in computer science. Using a large amount of data to write the software itself is a pretty astonishing development. And our GPU business is making it practical to train networks that are trained and taught by just an enormous amount of data, has really opened up this field for rapid innovation. And so, we're seeing a lot of excitement there. And so,…

Thank you. Our next question comes from the line of Christopher Rolland with FBR Capital Markets & Co. Your line is open. Please proceed. Christopher Adam Jackson Rolland - FBR Capital Markets & Co.: Hey, guys. So looks like stand-alone GPU purchases and pure gaming products, they're becoming a larger percentage of sales and mix, particularly as discrete GPUs kind of mix down here. So, should we be looking at Q4 differently now? Does the holiday season have more impact now than it's had in prior years? And could this be a year where we get better than typical seasonality?

Well, I think we ought to just enjoy a seasonality first and then we'll come back and comment on it. What really drives our business, what really drives our business are the games that come out, the quality of the games, the production value of the games, and the global growth of gaming. United States is not very much a – well, let me just say opposite. United States is very much a game console market. And the reason for that is very clear. We have the benefit of family rooms and people have their own bedrooms. But around the world, especially markets that are just developing and growing, the PC platform is a platform that every family needs and every individual needs anyways, and so they tend to be a PC gaming market. And in addition to that, because of eSports and MOBA, which is very clearly the most exciting area of gaming today, that is largely a PC phenomenon. And so, those are really the factors that drive our growth. And this second half of the year, we're really fortunate to have some amazing, amazing titles coming out whether it's Star Wars or Call of Duty, Assassin's Creed, Metal Gear Solid, these are franchise titles with just an enormous number of players that are waiting for it, and so I'm looking for it as well and hopefully it will drive for a good season. Christopher Adam Jackson Rolland - FBR Capital Markets & Co.: Great. In autonomous driving, your main competitor some consider a monopoly in the space. They're only spending maybe $40 million a year in R&D. You spend probably 30 times that in your total company and I'm pretty sure you'd feel comfortable spending multiples of that just on the autonomous driving segment. So do you guys see this as an opportunity for you guys kind of lower hanging fruit here? How should we view spending, how you're thinking about this, and just a smaller one, how do we sort of split your R&D between software and hardware spend in the area?

Yeah, well, we don't spend all that on autonomous driving, of course. We're a visual computing company with four platforms and one of our platforms is autonomous driving or Drive, which is our car platform. Our approach to – the current market for what is called ADAS, driver assistance, relies on a smart camera, if you will. It's a camera that can detect objects. And objects of a certain list. And in the future, autonomous driving is surely more than detecting objects, and it will surely require more than cameras. You can't drive in the dark. You can't see in the dark if you can't see. You know, and so having cameras alone is not good enough. And for cars using lidars and using radars and sonars and cameras all over the car, that is what the industry calls sensor fusion to realize insight by fusing the input of multiple sensors. And in our case, we're going to use deep learning the same approach that we've been using for much of the work that we do and that's been talked about in deep learning to assist and to help realize this vision of an autonomous vehicle. Along the way, of course, we're going to have all kinds of capabilities. And the benefit of our approach is – it's very compatible with smart cameras. And so, most of the platforms that we're in today, in fact, are harmoniously working with smart cameras that are either home grew or bought from a third-party. And also processing on our platform. And so, we see it as a compatible path to the future. And the road to autonomous driving is – there's lots of innovation yet. And your last question was, Chris? Christopher Adam Jackson Rolland - FBR Capital Markets & Co.: Yeah, just in terms of your spend on that part, call it ADAS in autonomous, what's software and what's hardware, how do you sort of split that out or think about it?

Well, just the company largely is a software company and the reason for that is because we're about algorithms. And if you look at the company, although we're well-known for building some of the most complex processors in the world, that represents probably about a third of our engineers. Two-thirds of our engineers are algorithm experts and computational mathematicians and system software experts and so on and so forth. And so, that's pretty consistent in ADAS as well. We're about two-thirds software. Christopher Adam Jackson Rolland - FBR Capital Markets & Co.: Okay. Great. Thanks.

Thank you. And our next question comes from the line of Joe Moore with Morgan Stanley. Your line is open. Please proceed. Joseph L. Moore - Morgan Stanley & Co. LLC: Great. Thank you. I wonder if you could talk about DirectX 12. What kind of impact you think that might have. I know these things don't come along that often, but does that have a strong impact in any one short period, or is that sort of more drawn out over time?

Boy, I cannot wait for DirectX 12. And the reason for that is DX12 has been re-architected particularly in the geometry perimetive part of the pipeline. It can now process geometry with much, much lower load on the CPU than ever before. And so, the benefit is that we're going to be able to pump through a lot more geometric fidelity, a lot more geometry processing into the GPU. And so, you're going to see just much, much more beautiful graphics. On the other hand, it takes a lot of pressure off the CPU. And the CPU can now be used for other type of tasks, network more players and deal with scenes that has a lot more characters, maybe more artificial intelligence algorithms, and making your opponent, if you will, the computer opponent smarter. And so, you're going to be able to do a lot more things with DX12. I'm super excited about it. Joseph L. Moore - Morgan Stanley & Co. LLC: Great. Thank you. And then I just have a question. You guys have talked in the past a little bit about using FPGAs to accelerate servers versus graphics. Given the importance that Intel's placing now on FPGA server acceleration, how do you see the value proposition of Tesla in that same space?

Well, I think that, first of all, I guess, at this point a foregone conclusion that accelerated computing is an essential part of future scaling in the what is called, the post- Moore's law era. And accelerated computing can come in a lot of different forms. An FPGA is a configurable computer, and so if you don't have that many different types of algorithms, and you can afford the expense and the difficulty of designing an FPGA, you can get results. It's basically designing your own customer chip that runs slower because ASICs are faster. But still, you're designing a customer chip. On the other hand, a GPU is not about designing, it's about programming. And so, if you have large different types of algorithms, you're changing your algorithms on a regular basis, the throughput that you get with a GPU that we've built, which is arguably already the most complex that any processor has ever been built anyhow. And so, it gives you a lot more flexibility. And so, these are all spectrums, if you will, of accelerated computing. But, the thing that is really fantastic is finally on a very, very large scale and across the industry the recognition that accelerated computing is the path forward. Joseph L. Moore - Morgan Stanley & Co. LLC: Great. Thank you very much.

Thank you. Our next question comes from the line of C.J. Muse with Evercore. Your line is open. Please proceed.

Yeah. Good afternoon. Thank you for taking my question. I guess first question, Jen-Hsun, when you look at PC gaming and strength and sustainability into the back half, it looks like you came in about 150 million more than what you were thinking at least initially for the guidance. I'm curious if there's any sort of color you can provide there in terms of mix, higher ASP strength geographically? And then looking at the second half of the year, first half fiscal 2016's growing about 40% year-over-year. How should we think about the second half versus the first half, particularly given those four drivers that you outlined at the early part of the call?

Yeah, let me answer the second one first and maybe Colette can help you with the first one. On the second one, the thing that I feel much more confident in answering is our position in the market and the health of that market. I am pretty sure that gaming is a large-scale phenomenon and growing. I'm pretty sure that MOBA is a social network, that when you're playing games, you're hanging out with your friends, and when some of your friends are hanging out on MOBA, you've got to join it, otherwise you don't get to hang out, and so the reason why these large markets get larger. The benefit of a very large market is that finally developers, publishers, can invest several hundred million dollars in building a new game of extraordinary production value and launch it into a very large market. The benefit of a large production value game to us is that it needs really, really great GPUs. And so, those positive feedback systems, those positive feedback effects, are things that I understand very, very well. Now, how's the seasonal buying in the second half and exactly how many percent and how many we're going to sell it's kind of harder for me to tell. But, I do know that our gaming business is quite robust. On the other stream, I know what I know about the autonomous vehicles and the processing that is necessary to achieve and realize that dream and where we are on that dream. We're still quite a ways from it, in fact, to do something that we can really, really count on. And then on accelerated computing, I'm pretty confident at this point that accelerated computing has reached a tipping point, in that it has been recognized around the industry and globally that this is a very good approach forward, both for supercomputing, already adopted by our nation's fastest supercomputer, but and also the recognition by the presidential initiative to adopt methods to bring exascale to the marketplace in the next several years. Accelerated computing will surely be required. And so, I think that those things I feel very strongly about and I think it's pretty clear our position within each one of those are very good. Colette M. Kress - Chief Financial Officer & Executive Vice President: Yeah. And to help answer your question regarding our performance in the quarter on gaming and how well it did and where did it come from in terms of is that ASP, is that volume, is it region? And the answer to that is yes, yes, and yes. The value that we delivered in our high GTX cards were truly well received by the market. That high value affords us a great ASP and a great revenue growth. We've seen tremendous volume over this quarter as well, which has helped us; but thirdly, which I think is important, is all regions from a sell-through are also performing very well.

Very helpful. Thank you. Colette M. Kress - Chief Financial Officer & Executive Vice President: Yeah, I think with that we have one more question for the group. Operator, if we can take that last question.

Certainly. The last question comes from the line of Matthew Ramsay with Canaccord Genuity. Your line is open. Please proceed.

Thank you very much and congrats on the quarter. Thanks for squeezing me in. Jen-Hsun, as you may appreciate, there's been a little bit of angst in the investor community regarding the Chinese consumer, given all that's gone on over there in the stock market et cetera and it seems like your gaming business has obviously done quite well and maybe you could talk a little bit about the concentration of your gaming business that maybe ends up in China and how the trends are playing out in that market overall, because it seems you guys are doing much better than folks might appear? Thanks.

Yeah, I appreciate the question. About 40%, I guess. Just shy of 40% of our total gaming business is in China. The Chinese market is surprisingly resilient, because most of the games are free to play. It is probably one of the most affordable form of entertainment that you can possibly imagine. And, as I mentioned earlier, these networked games are really social environments. They're social networks. One of the reasons why Tencent grew so fast in China. Once the social network gets traction, it grows faster than linear. And so, there's some reasons why the Chinese market is more resilient, the gaming market is more resilient than expected. We're also seeing a shift to higher end GPUs in China. Some of that probably has to do with the dramatic change in improvement in production value of games in China. There was a time when the Chinese games were enjoyed and fun. However, the production values weren't very good, but now if you take a look at the Tencent games, the production value are absolutely phenomenal. They're beautiful. They're artistic and in those cases require a lot more GPU capability. And so, we're seeing multiple dynamics happening in China and they all seem to be quite healthy.

All right, thank you very much.

Thank you. I will now turn it back to the speakers for their closing remarks.

Thank you, everybody, and I'll talk to you next quarter. Colette M. Kress - Chief Financial Officer & Executive Vice President: Thank you.

Ladies and gentlemen, that does conclude the conference call for today. We do thank you for your participation and ask that you please disconnect your lines.