Freescale announces Q4 and full-year 2010 results

AUSTIN, USA: Freescale Semiconductor Holdings I. Ltd has announced financial results for the fourth quarter and fiscal year ended December 31, 2010.

Highlights for the fourth quarter and calendar year include:
* Net sales of $1.18 billion for the fourth quarter;
* Net sales of $4.46 billion for fiscal year 2010;
* Trailing twelve month Adjusted EBITDA of $1.15 billion;
* Cash and cash equivalents of $1.04 billion at December 31, 2010.

“Our fourth quarter results cap off a solid performance in 2010 with revenue growth, margin expansion and record design wins,” said Rich Beyer, chairman and CEO. “The momentum we saw throughout the year positions us for continued improvement in 2011.”

Operating results
Net sales for the fourth quarter of 2010 were $1.18 billion, compared to $1.15 billion in the third quarter of 2010 and $951 million in the fourth quarter last year. Net sales for calendar year 2010 were $4.46 billion, compared to $3.51 billion in calendar year 2009.

Income from operations for the three months ended December 31, 2010 was $17 million, compared to $1 million in the third quarter of 2010 and a loss of $261 million in the fourth quarter of 2009. Income from operations for calendar year 2010 was a loss of $61 million compared to a loss of $1.22 billion in calendar year 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 December 31, 2010, were $177 million compared to earnings of $158 million in the third quarter of 2010 and $59 million in the fourth quarter of 2009. Adjusted operating earnings for calendar year 2010 were $566 million compared to a loss of $144 million in calendar year 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) was $280 million for the fourth quarter of 2010, compared to $253 million in the third quarter of 2010 and $168 million in the fourth quarter of 2009. EBITDA for calendar year 2010 was $957 million compared to $304 million in calendar year 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 fourth quarter and full year 2010 are as follows:

* Microcontroller net sales were $415 million in the fourth quarter of 2010, compared to $418 million in the third quarter of 2010 and $333 million in the fourth quarter of 2009. Microcontroller net sales for calendar 2010 were $1.59 billion compared to $1.11 billion in calendar year 2009.
* RF, Analog and Sensor net sales were $285 million in the fourth quarter of 2010, compared to $272 million in the third quarter of 2010 and $221 million in the fourth quarter of 2009. RF, Analog and Sensor net sales for calendar year 2010 were $1.06 billion compared to $814 million in calendar year 2009.
* Networking and Multimedia net sales were $338 million in the fourth quarter of 2010, compared to $338 million in the third quarter of 2010 and $251 million in the fourth quarter of 2009. Networking and Multimedia net sales for calendar year 2010 were $1.23 billion compared to $929 million in calendar year 2009.
* Cellular net sales were $111 million in the fourth quarter of 2010, compared to $90 million in the third quarter of 2010 and $116 million in the fourth quarter of 2009. * Cellular net sales for calendar year 2010 were $455 million compared to $471 million in calendar year 2009.
* Other net sales were $33 million in the fourth quarter of 2010 compared to $30 million in the third quarter of 2010 and $30 million in the fourth quarter of 2009. Other net sales for calendar year 2010 were $120 million, compared to $180 million in calendar year 2009.