NXP Semiconductors reports Q3 2011 results

SINGAPORE: NXP Semiconductors N.V. reported financial results for the third quarter 2011, ended October 2, 2011, and provided guidance for the fourth quarter 2011.

Q3 2011 GAAP results
Product revenue from continuing operations was $970 million, an increase of 3.6 percent from the $936 million reported in the third quarter of 2010, and a decrease of 5.4 percent from the $1,025 million reported in the second quarter of 2011. Product revenue is the combination of revenue from the HPMS and Standard Products segments.

Total revenue from continuing operations was $1,060 million, a decrease of 5.4 percent from the $1,120 million reported in third quarter of 2010 and a decrease of 5.4 percent from the $1,121 million reported in the second quarter of 2011.

Revenue attributable to the combination of the Manufacturing Operations and Corporate and Other segments was $90 million, a 51.1 percent decrease from the $184 million reported in the third quarter of 2010, and a 6.3 percent decrease from the $96 million reported in the second quarter of 2011. The anticipated decline was primarily due to lower revenue in the Manufacturing Operations segment, as contractual obligations to provide manufacturing services for previously divested businesses continue to expire.

Included in the total revenue for the third quarter of 2010 was $24 million related to the divested NuTune business.

Gross profit from continuing operations for the third quarter of 2011 was $488 million, or 46.0 percent of revenue, as compared to $476 million, or 42.5 percent of revenue reported in the third quarter of 2010. This compares to the $523 million, or 46.7 percent of revenue reported in the second quarter 2011.

Operating income from continuing operations for the third quarter of 2011 was $109 million, or 10.3 percent of revenue, as compared to an operating income of $106 million reported in the third quarter of 2010, or 9.5 percent of revenue. This compares to an operating income of $133 million, or 11.9 percent of revenue as reported in the second quarter of 2011.

Net income for the third quarter of 2011 was $301 million or $1.21 per share. This compares to a net income of $369 million, or $1.55 per share (diluted) reported in the third quarter of 2010, and net income of $84 million or $0.33 per share (diluted) reported in the second quarter of 2011. Net income for the second quarter of 2011 and the third quarter of 2010 was positively impacted due to currency fluctuations on the company’s US dollar-denominated debt.

On July 4, 2011 NXP closed the previously announced sale of the Sound Solutions business and received gross proceeds of $855 million. During the third quarter of 2011 NXP realized $411 million of net profit, or $1.69 per share from the sale of the Sound Solutions business. All current and all prior period financial figures have been restated to reflect the divesture of the Sound Solutions business. The historical results of the Sound Solutions business are treated as a discontinued operation in NXP’s financial statements.