NXP announces Q2 2010 results

SINGAPORE: Further to the release of preliminary second quarter results ahead of its initial public offering on Nasdaq, NXP Semiconductors N.V. has announced its second quarter 2010 results.

Highlights
* Significant improvements in sales, Gross Profit and Income From Operations across the business.
* Second quarter sales of $1,201 million compared to $903 million in the second quarter of 2009 and $1,165 million in the first quarter of 2010.
* Comparable YoY sales growth of 43.6 percent.
* Gross margin of 39.3 percent compared to 20.6 percent in Q2 2009 and 36.7 percent in the first quarter of 2010.
* Adjusted gross margin* of 40.1 percent compared to 30.7 percent in Q2 2009 and 38.2 percent in the first quarter of 2010.
* Income From Operations of $93 million compared to a loss of $217 million in Q2 2009 and breakeven in the first quarter of 2010.
* Adjusted Income From Operations of $185 million compared to a loss of $24 million in Q2 2009 and a profit of $144 million in the first quarter of 2010.
* Cash position of $842 million, down sequentially from $870 million – Cash flow from operating activities in the quarter improved to $81 million.
* Factory loading based on wafer starts of 96 percent, compared to 62 percent in Q2 2009 and 93 percent in Q1 2010.
* In July of this year, NXP completed bond transactions to extend maturities of approximately $1 billion of debt to 2018.
* In its Initial Public Offering (IPO) announced on August 5, 2010 NXP issued 34 million new shares; $476 million of gross proceeds.

Richard Clemmer, CEO of NXP, said: “We are certainly encouraged by the improvements in sales, gross profit and Income From Operations across the company, as well as the improvements in the overall business environment, particularly when compared with one year ago.

“The increased success in winning new designs in High Performance Mixed Signal combined with the improved economic environment together with our ability to quickly ramp up production to meet higher demand from our customers has been key to our 62 percent comparable growth from last year in High Performance Mixed Signal.

“Lastly, I would like to welcome our new investors who participated in the IPO. We are confident that we are equipped to be successful going forward, focusing on the fastest growing sectors in electronics. By taking advantage of improved markets, together with our differentiated technology, world class cost structure and accelerated recent design wins, we can support a growth rate superior to the growth of the markets we serve.”