Freescale announces Q2 2010 results

AUSTIN, USA: Freescale Semiconductor Holdings I Ltd has announced financial results for the second quarter ended July 2, 2010.

Highlights for the second quarter include:
* Net sales of $1.11 billion;
* Trailing 12 month Adjusted EBITDA of $929 million;
* Cash and cash equivalents of $1.06 billion at July 2, 2010.

“Second quarter results showed continued growth in revenues and profitability for Freescale,” said Rich Beyer, chairman and CEO. “We are on a solid trajectory with four quarters of sequential growth, and our design win momentum continues to solidify our leadership in embedded processing solutions.”

Operating results
Net sales for the second quarter of 2010 were $1.11 billion, compared to $1.02 billion in the first quarter of 2010 and $824 million in the second quarter last year.

The reported loss from operations for the three months ended July 2, 2010 was $18 million, compared to a loss of $61 million in the first quarter of 2010 and a loss of $345 million in the second quarter of 2009.

Adjusted operating earnings (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) for the three months ended July 2, 2010 were $136 million compared to earnings of $95 million in the first quarter of 2010 and a loss of $75 million in the second quarter of 2009.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) were $229 million for the second quarter of 2010, compared to $194 million in the first quarter of 2010 and $38 million in the second quarter of 2009.

Descriptions of adjusted gross margin, EBITDA, Adjusted EBITDA and adjusted operating earnings (loss), and the reconciliations to our GAAP results are included in the tables and notes attached to this press release.

Product revenues
The company’s net sales figures for the second quarter of 2010 are as follows:

* Microcontroller net sales were $387 million in the second quarter of 2010, compared to $374 million in the first quarter of 2010 and $240 million in the second quarter of 2009.

* RF, Analog and Sensor net sales were $254 million in the second quarter of 2010, compared to $245 million in the first quarter of 2010 and $201 million in the second quarter of 2009.

* Networking and Multimedia net sales were $303 million in the second quarter of 2010, compared to $255 million in the first quarter of 2010 and $216 million in the second quarter of 2009.

* Cellular net sales were $133 million in the second quarter of 2010, compared to $121 million in the first quarter of 2010 and $138 million in the second quarter of 2009.

* Other net sales were $31 million in the second quarter of 2010 compared to $25 million in the first quarter of 2010 and $29 million in the second quarter of 2009.

Extinguishment of long-term debt
During April 2010, the company issued approximately $1.4 billion in senior secured notes and used the proceeds to extinguish $1.4 billion of near term maturities out to 2018, resulting in a non-cash charge of $366 million in the second quarter. This transaction, combined with an amend and extend transaction and bond offering in the first quarter of 2010, extended the maturities of $4.4 billion of long-term debt to 2016 and 2018.

Financial position
Cash and cash equivalents were $1.06 billion on July 2, 2010, inclusive of interest payments, bond repurchases and capital expenditures.