SOURCE: NXP Semiconductors

NXP Semiconductors

May 04, 2011 07:00 ET

NXP Semiconductors Reports First Quarter 2011 Results

Product Revenue From Continuing Operations of $979 Million, Up 4.4 Percent Sequentially

EINDHOVEN, THE NETHERLANDS--(Marketwire - May 4, 2011) - NXP Semiconductors N.V. (NASDAQ: NXPI)

                                     Q1 2011
                                     -------
GAAP Gross margin                      46.8%
GAAP Operating margin                  10.0%
GAAP Earnings per share              $ 0.73

Non-GAAP Gross margin                  47.8%
Non-GAAP Operating margin              20.6%
Non-GAAP Earnings per share          $ 0.46


--  Trailing twelve month adjusted EBITDA $1,108 million
--  Net debt reduced $568 million year-on-year to $3,754 million
--  Announced redemption of $362 million Senior Secured Notes due 2014
--  Announced redemption of $300 million of Floating Rate Notes
--  Announced a new $500 million Senior Secured Term Loan Facility due 2017

NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the first quarter 2011, ended April 3, 2011, and provided guidance for the second quarter 2011.

"NXP delivered better than anticipated top-line revenue during the first quarter as nearly all of our focus segments out-performed our original expectations," said Richard Clemmer, NXP Chief Executive Officer. "Our quarterly performance successfully demonstrates NXP's strategy to focus on the faster growing High Performance Mixed Signal market, and to opportunistically service the broad-based Standard Products market. The success of our strategy is especially clear when compared to the normal seasonal slowdown in the broader semiconductor industry and the seasonal performance of the mixed signal served market during the first quarter.

"We experienced continued margin expansion as non-GAAP gross margin increased to nearly 48 percent, a 22 percent improvement in non-GAAP gross profit versus the year ago period. Simultaneously we held our total expenses steady, resulting in non-GAAP operating margin of 21 percent, a 76 percent improvement in non-GAAP operating profit from the year ago period.

"Within our focused High Performance Mixed Signal segment, revenue grew 7 percent year-on-year, while segment margins continue to trend toward our long term model. During the first quarter, our High Performance Mixed Signal non-GAAP operating margin was 24 percent, a 54 percent increase in non-GAAP operating profit from the year ago period.

"We experienced significant growth within our Identification segment, which was up 17 percent sequentially, and up a full 40 percent versus the year ago period. Furthermore we experienced solid growth in our Wireless Infrastructure, Lighting and Infrastructure segment, off-set by seasonal weakness in our Mobile, Consumer and Computing segments and a very slight impact relating to the disaster in Japan on our Automotive segment," Clemmer said.

First Quarter 2011 GAAP Results

Product Revenue was $979 million, an increase of 9.5 percent from the $894 million reported in the first quarter of 2010, and an increase of 4.4 percent from the $938 million reported in the fourth quarter of 2010. Product Revenue from continuing operations is the combination of revenue from High Performance Mixed Signal (HPMS) and Standard Products segments. Total revenue from continuing operations was $1,082 million, a decrease of less than 1.0 percent from the $1,085 million reported in first quarter of 2010 and an increase of less than 1.0 percent from the $1,078 million reported in the fourth quarter of 2010.

Revenue attributable to the combination of the Manufacturing Operations and the Corporate and Other segments was $103 million, a 46.1 percent decrease from the $191 million reported in the first quarter of 2010, and a 26.4 percent decrease from the $140 million reported in the fourth quarter of 2010. Included in the total revenue for the first quarter of 2010 was $47 million related to our divested Home segment and $26 million related to the divested NuTune business. Ongoing support for the divested Home business is currently included in our Manufacturing Operations segment.

Gross profit from continuing operations for the first quarter of 2011 was $506 million, or 46.8 percent of revenue, as compared to $406 million, or 37.4 percent of revenue reported in the first quarter of 2010. This compares to the $495 million, or 45.9 percent of revenue reported in the fourth quarter 2010.

Operating income from continuing operations for the first quarter of 2011 was $108 million, or 10.0 percent of revenue, as compared to a loss of $15 million reported in the first quarter of 2010, or loss of 1.4 percent of revenue. This compares to an operating income of $106 million, or 9.8 percent of revenue as reported in the fourth quarter of 2010.

Net income for the first quarter of 2011 was $187 million, or $0.73 per share (diluted). This compares to a net loss of $345 million, or a loss of $1.60 per share reported in the first quarter of 2010, and net loss of $118 million or a loss of $0.47 per share reported in the fourth quarter of 2010.

All current and all prior period financial figures have been restated to reflect the previously announced divesture of NXP's Sound Solutions business. The historical results of the Sound Solutions business are treated as a discontinued business in NXP's financial statements.

First Quarter 2011 non-GAAP Results

Product Revenue was $979 million, an increase of 9.5 percent from the $894 million reported in the first quarter of 2010, and an increase of 4.4 percent from the $938 million reported in the fourth quarter of 2010. Revenue from continuing operations was $1,082 million, a decrease of less than 1.0 percent from the $1,085 million reported in first quarter of 2010 and an increase of less than 1.0 percent from the $1,078 million reported in the fourth quarter of 2010.

Non-GAAP gross profit from continuing operations was $517 million, or 47.8 percent of revenue, an increase from the $423 million, or 39.0 percent of revenue reported in the first quarter of 2010. This compares to $508 million, or 47.1 percent of revenue reported in the fourth quarter of 2010.

Non-GAAP operating income from continuing operations was $223 million, or 20.6 percent of revenue, an increase from the $127 million, or 11.7 percent of revenue, reported in the first quarter of 2010. This compares to the non-GAAP operating income of $208 million, or 19.3 percent of revenue reported in the fourth quarter of 2010.

Non-GAAP net income was $117 million, or $0.46 per share (diluted). This compares to non-GAAP net income of $35 million, or $0.16 per share reported in the first quarter of 2010, and a profit of $95 million or $0.37 per share (diluted) reported in the fourth quarter of 2010.

Additional Information

--  Annualized cash savings for the Redesign Program was $20 million in the
    first quarter of 2011, bringing the cumulative total since inception of
    the program to $814 million. NXP continues to estimate that the total
    annualized program savings through its expected completion at the end
    of 2011 to be between $900 to 950 million.
--  Cash paid out for the Redesign Program was $41 million in the first
    quarter of 2011, bringing the cumulative total since the beginning of
    the program to $697 million. NXP continues to estimate that total
    program costs through its expected completion at the end of 2011 will
    be no greater than $725 million.
--  SSMC, NXP's consolidated joint-venture wafer fab with TSMC, reported
    first quarter 2011 operating income of $33 million, EBITDA of $44
    million and had an ending cash balance of $352 million.
--  Utilization in NXP wafer fabs averaged 97 percent in the first quarter
    2011 compared to 93 percent in the year ago period and 97 percent in
    the prior quarter. NXP began wafer fabrication capacity expansion plans
    in the fourth quarter of 2010 and will continue throughout 2011. The
    majority of the investments are in the SSMC facility in Singapore which
    primarily supports the high growth areas of our HPMS segment.
--  During the first quarter of 2011 NXP's total long-term debt balance
    increased by $70 million as a result of currency fluctuations which
    impact the company's Euro-based long-term debt.
--  On April 5, 2011 NXP drew down a previously announced $500 million
    Senior Secured Term Loan Facility due in 2017. The new loan has a
    margin of 3.25 percent above LIBOR, combined with a LIBOR floor of 1.25
    percent and was priced at 99.5 percent to par. On April 6, 2011
    proceeds from the new loan transaction, plus cash generated from
    operations, were used to redeem all of the company's $362 million 7.875
    percent Senior Secured Notes due 2014, in addition to $100 million of
    its US dollar-denominated Floating Rate Notes due 2013 and $200 million
    of its Euro-denominated Floating Rate Notes due 2013.
--  During the first quarter of 2011 NXP announced a secondary offering by
    certain of its shareholders to sell 34.4 million shares of its common
    stock. NXP did not receive any proceeds from the secondary offering.
    With the completion of the secondary offering on April 5, 2011, the
    percentage of free-floating common shares of NXPI increased to 29.5%
    from 15.6%, thereby improving the overall market liquidity of its
    common shares.

Guidance for the Second Quarter 2011:

--  Product Revenue for the second quarter of 2011 is anticipated to
    increase 2 to 5 percent sequentially as compared to the first quarter
    of 2011. Product Revenue is the combination of revenue from HPMS and
    Standard Products segments.

--  Revenue in our Manufacturing Operations and Corporate and Other
    segments is anticipated to decline by approximately $10 million to $15
    million sequentially as compared to the first quarter 2011.

--  Non-GAAP operating margin from continuing operations is anticipated to
    be about 21 percent.

--  During the second quarter of 2011, SSMC, NXP's financially consolidated
    joint-venture wafer fabrication with Taiwan Semiconductor Manufacturing
    Corporation (TSMC) paid a dividend of $170 million. TSMC will receive
    $65.9 million of the dividend, equivalent to TSMC's 38.79 percent
    equity ownership. As a result of the dividend, the consolidated cash
    balance of NXP will decrease by $65.9 million.

Discussion of GAAP to non-GAAP Reconciliations

NXP provides financial information on both a U.S. generally accepted accounting principles (GAAP) and non-GAAP basis. Reconciliations of these non-GAAP measures to the most comparable measure calculated in accordance with GAAP are provided in this release.

Non-GAAP information should not be considered a substitute for any information derived or calculated in accordance with GAAP. NXP provides this information as an additional insight as to how management assesses the performance and allocation of resources among its various segments and because the financial community uses it in its analysis of NXP's operating performance, historical results and projections of NXP's future operating results.

The non-GAAP measures used herein are not intended to be measures of financial performance or condition, liquidity or profitability in accordance with GAAP, and should not be considered as alternatives to net income (loss), operating income, or any other performance measures determined in accordance with GAAP.

Certain information referred to in this release, including "non-GAAP gross margin", "non-GAAP operating margin", "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA - last 12 months", have not been derived in accordance with GAAP and can vary from other participants in the semiconductor industry. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of NXP's financial results as reported under GAAP. In this release the use of the terms:

--  "Non-GAAP gross profit", "non-GAAP gross margin", "non-GAAP operating
    margin", "non-GAAP operating income" and "non-GAAP net income" are all
    non-GAAP financial measures that reflect the underlying operating and
    profit structure of NXP operations net of purchase price accounting
    ("PPA"), restructuring, other incidental items and the impact of other
    non-cash adjustments.

--  "EBITDA", "Adjusted EBITDA" and "Adjusted EBITDA - last 12 months", are
    not intended to be a measure of free cash flow for management's
    discretionary use, as these metrics do not consider certain cash
    requirements such as interest payments, tax payments, debt service
    requirements and replacement of fixed assets.

--  "PPA effects" reflect the fair value adjustments impacting acquisition
    accounting and other acquisition adjustments charged to the income
    statement applied to the formation of NXP on September 29, 2006 and all
    subsequent acquisitions.

--  "Other incidental items" consist of process and product transfer costs
    (which refer to the costs incurred in transferring a production process
    and products from one manufacturing site to another), gains and losses
    resulting from our divestment activities. NXP presents other incidental
    items in its analysis of results of operations because these costs,
    gains and losses, have affected the comparability of the company's
    results over the years.

Conference Call and Webcast Information

NXP will host a conference call to discuss its first quarter 2011 results and outlook for the second quarter of 2011 today at 8:00 a.m. U.S. Eastern Time (2:00 p.m. Central European Time). To listen to the webcast, please visit the Investor Relations section of the NXP website at www.nxp.com/investor. The webcast will be recorded and available for replay shortly after the call concludes.

About NXP Semiconductors

NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise. These innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. A global semiconductor company with operations in more than 25 countries, NXP posted revenue of $4.4 billion in 2010. Additional information can be found by visiting www.nxp.com.

Forward-looking Statements

This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; the ability to successfully introduce new technologies and products; the end-market demand for the goods into which NPX's products are incorporated; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity; the ability to meet the combination of corporate debt service, research and development and capital investment requirements; the ability to accurately estimate demand and match manufacturing production capacity accordingly or obtain supplies from third-party producers; the access to production capacity from third-party outsourcing partners; any events that might affect third-party business partners or NXP's relationship with them; the ability to secure adequate and timely supply of equipment and materials from suppliers; the ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; the ability to form strategic partnerships and joint ventures and to successfully cooperate with alliance partners; the ability to win competitive bid selection processes to develop products for use in customers' equipment and products; the ability to successfully establish a brand identity; the ability to successfully hire and retain key management and senior product architects; and, the ability to maintain good relationships with our suppliers. In addition, this document contains information concerning the semiconductor industry and NXP's business segments generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, NXP's market segments and product areas may develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available from on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

NXP Semiconductors
Condensed consolidated statements of operations (unaudited)
Table 1


($ in millions except share data)                Q1 2010  Q4 2010  Q1 2011
                                                 -------  -------  -------

Revenue                                            1,085    1,078    1,082
Cost of revenue                                     (679)    (583)    (576)
                                                 -------  -------  -------

Gross profit                                         406      495      506

Research and development expenses                   (151)    (138)    (154)
Selling expenses                                     (65)     (73)     (65)
General and administrative expenses                 (188)    (178)    (169)
                                                 -------  -------  -------
Total operating expenses                            (404)    (389)    (388)

Other income (expense)                               (17)       -      (10)
                                                 -------  -------  -------

Operating income (loss)                              (15)     106      108

Financial income (expense):
  Interest income (expense) - net                    (80)     (80)     (81)
  Foreign exchange gain (loss) on debt              (222)    (102)     190
  Gain on extinguishment of long term debt             2        -        -
  Other financial expense                             (2)     (10)      (8)
                                                 -------  -------  -------

Income (loss) before taxes                          (317)     (86)     209

Provision for income taxes                            (5)       5        1
                                                 -------  -------  -------

Income (loss) after taxes                           (322)     (81)     210

Results relating to equity-accounted investees       (26)     (26)     (22)
                                                 -------  -------  -------

Income (loss) from continuing operations            (348)    (107)     188
Income (loss) on discontinued operations, net of
 tax                                                  12       11       13
                                                 -------  -------  -------
Net income (loss)                                   (336)     (96)     201
Net (income) loss attributable to
 non-controlling interests                            (9)     (22)     (14)
                                                 -------  -------  -------
Net income (loss) attributable to stockholders      (345)    (118)     187

Earnings per share data: 1)
Net income (loss) attributable to stockholders
 per common share in $:
Basic earnings per common share in $
Income (loss) from continuing operations           (1.66)   (0.51)    0.70
Income (loss) from discontinued operations          0.06     0.04     0.05
Net income (loss)                                  (1.60)   (0.47)    0.75
Diluted earnings per common share in $
Income (loss) from continuing operations           (1.66)   (0.51)    0.68
Income (loss) from discontinued operations          0.06     0.04     0.05
Net income (loss)                                  (1.60)   (0.47)    0.73

Weighted average number of shares of common
 stock used in computing per share amounts (in
 thousands):
- Basic                                          215,252  250,246  250,402
- Diluted                                        215,252  250,246  256,589

1) As adjusted for the impact of the 1:20 reverse stock split.




NXP Semiconductors
Condensed consolidated balance sheets (unaudited)
Table 2

                                                 April 4, Dec 31,  April 3,
($ in millions unless otherwise stated)            2010     2010     2011
                                                 -------- -------- --------

Current assets:
Cash and cash equivalents                             855      898      879
Receivables:
  Accounts receivable - net                           480      396      431
  Other receivables                                    56       42       32
                                                 -------- -------- --------
Total receivables                                     536      438      463
Assets held for sale                                   46       48       45
Current assets of discontinued operations              99      110      102
Inventories                                           459      513      537
Other current assets                                  209      129      129
                                                 -------- -------- --------
Total current assets                                2,204    2,136    2,155

Non-current assets:
Investments in equity-accounted investees             194      132      110
Other non-current financial assets                     35       19       19
Non-current assets of discontinued operations         281      266      290
Other non-current assets                              126      135      156
Property, plant and equipment                       1,227    1,164    1,148
Intangible assets excluding goodwill                1,724    1,486    1,466
Goodwill                                            2,282    2,299    2,409
                                                 -------- -------- --------
Total non-current assets                            5,869    5,501    5,598

Total assets                                        8,073    7,637    7,753

Current liabilities:
Accounts payable                                      539      593      539
Liabilities held for sale                              29       21       21
Current liabilities of discontinued operations         65       60       59
Accrued liabilities                                   641      461      445
Short-term provisions                                 197       95       67
Other current liabilities                              86       95      115
Short-term debt                                       611      423      435
                                                 -------- -------- --------
Total current liabilities                           2,168    1,748    1,681

Non-current liabilities:
Long-term debt                                      4,566    4,128    4,198
Long-term provisions                                  373      415      370
Non-current liabilities of discontinued
 operations                                            29       20       22
Other non-current liabilities                         152      107      105
                                                 -------- -------- --------
Total non-current liabilities                       5,120    4,670    4,695

Non-controlling interests                             207      233      246
Stockholder's equity                                  578      986    1,131
                                                 -------- -------- --------
Total equity                                          785    1,219    1,377

Total liabilities and equity                        8,073    7,637    7,753



NXP Semiconductors
Condensed consolidated statements of cash flows (unaudited)
Table 3


($ in millions unless otherwise stated)          Q1 2010  Q4 2010  Q1 2011
                                                 -------  -------  -------
Cash Flows from operating activities
Net income (loss)                                   (336)     (96)     201
(Income) loss from discontinued operations, net
 of tax                                              (12)     (11)     (13)
Adjustments to reconcile net income (loss) to
 net cash provided (used for):
Depreciation and amortization                        185      184      145
Net (gain) loss on sale of assets                     25        2       15
Gain on extinguishment of debt                        (2)       -        -
Results relating to equity accounted investees        26       26       22
Dividends paid to non-controlling interests            -       (1)       -
Changes in operating assets and liabilities:
(Increase) decrease in trade receivables            (111)      33      (16)
(Increase) decrease in inventories                    70      (38)     (10)
Increase (decrease) in trade payables                 (4)      19      (66)
(Increase) decrease in other receivables             (14)      20      (13)
Increase (decrease) in other payables                 19      (26)     (15)
Increase (decrease) in provisions                    (74)     (24)     (98)
Changes in deferred taxes                            (50)     (46)      17
Exchange differences                                 259      113     (190)
Other items                                            2       (5)      18
                                                 -------  -------  -------
Net cash provided by (used for) operating
 activities                                          (17)     150       (3)

Cash flows from investing activities:
Purchase of intangible assets                         (1)      (3)      (2)
Capital expenditures on property, plant and
 equipment                                           (49)     (77)     (64)
Proceeds from disposals of property, plant and
 equipment                                             4        1       11
Proceeds from disposals of assets held for sale        -        8        -
Purchase of other non-current financial assets         -       (1)       -
Proceeds from the sale of other non-current
 financial assets                                      -        -        1
Proceeds from (cash payments related to) sale of
 interests in businesses                             (47)     (13)       -
                                                 -------  -------  -------
Net cash (used for) provided by investing
 activities                                          (93)     (85)     (54)

Cash flows from financing activities:
Net (repayments) borrowings of short-term debt         1        9       10
Repayments under the revolving credit facility         -     (100)       -
Repurchase of long-term debt                         (12)       -        -
Principal payments on long-term debt                   -       (1)      (2)
Net proceeds from the issuance of common stock         -       (2)       -
                                                 -------  -------  -------
Net cash provided by (used for) financing
 activities                                          (11)     (94)       8

Net cash provided by (used for) continuing
 operations                                         (121)     (29)     (49)
Cash flows from discontinued operations:
Net cash provided by (used for) operating
 activities                                            2       (5)      16
Net cash provided by (used for) investing
 activities                                           (2)      (2)     (10)
Net cash provided by (used for) financing
 activities                                            -        2        -
                                                 -------  -------  -------
Net cash provided by (used for) discontinued
 operations                                            -       (5)       6

Net cash provided by (used for) continuing and
 discontinued operations                            (121)     (34)     (43)
Effect of changes in exchange rates on cash
 positions                                           (50)     (20)      30
Increase (decrease) in cash and cash equivalents    (171)     (54)     (13)
Cash and cash equivalents at beginning of period   1,041      962      908
Cash and cash equivalents at end of period           870      908      895
Less: cash and cash equivalents at end of
 period-discontinued operations                       15       10       16
                                                 -------  -------  -------
Cash and cash equivalents at end of
 period-continuing operations                        855      898      879

For a number of reasons, principally the effects of translation differences
and consolidation changes, certain items in the statements of cash flows do
not correspond to the differences between the balance sheet amounts for the
respective items.



NXP Semiconductors
Segment Results

Segment Revenue
Table 4

($ in millions)                           Q1 2010    Q4 2010    Q1 2011
                                         ---------- ---------- ----------

High Performance Mixed Signal                   695        717        742
Standard Products                               199        221        237
                                         ---------- ---------- ----------
    Product Revenue                             894        938        979

Manufacturing Operations                        109        114         92
Corporate and Other                              35         26         11
Divested Home Activities                         47          -          -
                                         ---------- ---------- ----------
    Total NXP revenue                         1,085      1,078      1,082
                                         ---------- ---------- ----------


High Performance Mixed Signal Segment Results
Table 5

($ in millions, unless otherwise stated)  Q1 2010    Q4 2010    Q1 2011
                                         ---------  ---------  ---------

Revenue                                        695        717        742
  % of Product Revenue                        77.7%      76.4%      75.8%

GAAP gross profit                              330        413        422
  % of revenue                                47.5%      57.6%      56.9%
Non-GAAP gross profit                          340        413        423
  % of revenue                                48.9%      57.6%      57.0%

Operating income (loss)                         51        119        121
  % of revenue                                 7.3%      16.6%      16.3%
Non-GAAP operating income                      114        168        175
  % of revenue                                16.4%      23.4%      23.6%
                                         ---------  ---------  ---------


Standard Products Segment Results
Table 6

($ in millions, unless otherwise stated)  Q1 2010    Q4 2010    Q1 2011
                                         ---------  ---------  ---------

Revenue                                        199        221        237
  % of Product Revenue                        22.3%      23.6%      24.2%

GAAP gross profit                               55         84         87
  % of revenue                                27.6%      38.0%      36.7%
Non-GAAP gross profit                           54         85         87
  % of revenue                                27.1%      38.5%      36.7%

Operating income (loss)                          9         39         35
  % of revenue                                 4.5%      17.6%      14.8%
Non-GAAP operating income (loss)                22         52         49
  % of revenue                                11.1%      23.5%      20.7%
                                         ---------  ---------  ---------


NXP Semiconductors
Segments Reconciliation
Q1 2011
Table 7

                                  PPA                      Other     Non-
($ in millions)          GAAP   effects  Restructuring  Incidentals  GAAP
                         -----  -------  -------------  -----------  -----

Gross profit
  HPMS                     422       (1)             -            -    423
  Standard Products         87        -              -            -     87
  Manufacturing
   Operations              (14)      (2)            (6)          (2)    (4)
  Corporate and Other       11        -              -            -     11
                         -----  -------  -------------  -----------  -----
Total NXP                  506       (3)            (6)          (2)   517

Operating income (loss)
  HPMS                     121      (52)            (1)          (1)   175
  Standard Products         35      (14)             -            -     49
  Manufacturing
   Operations              (16)      (7)            (6)          (1)    (2)
  Corporate and Other      (32)       -             (9)         (24)     1
                         -----  -------  -------------  -----------  -----
Total NXP                  108      (73)           (16)         (26)   223
                         -----  -------  -------------  -----------  -----



Q4 2010
Table 8
                                  PPA                      Other     Non-
($ in millions)          GAAP   effects  Restructuring  Incidentals  GAAP
                         -----  -------  -------------  -----------  -----

Gross profit
  HPMS                     413       (1)             2           (1)   413
  Standard Products         84        -             (1)           -     85
  Manufacturing
   Operations              (11)      (2)            (9)          (2)     2
  Corporate and Other        9        -              1            -      8
                         -----  -------  -------------  -----------  -----
Total NXP                  495       (3)            (7)          (3)   508

Operating income (loss)
  HPMS                     119      (53)             4            -    168
  Standard Products         39      (12)            (1)           -     52
  Manufacturing
   Operations              (20)      (5)           (10)          (3)    (2)
  Corporate and Other      (32)       1             (8)         (15)   (10)
                         -----  -------  -------------  -----------  -----
Total NXP                  106      (69)           (15)         (18)   208
                         -----  -------  -------------  -----------  -----


Q1 2010
Table 9


                                  PPA                      Other     Non-
($ in millions)          GAAP   effects  Restructuring  Incidentals  GAAP
                         -----  -------  -------------  -----------  -----

Gross profit
  HPMS                     330      (10)             1           (1)   340
  Standard Products         55        -              2           (1)    54
  Manufacturing
   Operations               (9)      (2)            (2)          (7)     2
  Corporate and Other       14        -              3            -     11
  Divested Home Activities  16        -              -            -     16
                         -----  -------  -------------  -----------  -----
Total NXP                  406      (12)             4           (9)   423

Operating income (loss)
  HPMS                      51      (63)             1           (1)   114
  Standard Products          9      (14)             2           (1)    22
  Manufacturing
   Operations              (16)      (6)            (2)          (6)    (2)
  Corporate and Other      (28)       -            (11)         (11)    (6)
  Divested Home Activities (31)       -             (4)         (26)    (1)
                         -----  -------  -------------  -----------  -----
Total NXP                  (15)     (83)           (14)         (45)   127
                         -----  -------  -------------  -----------  -----


NXP Semiconductors
Financial Reconciliation - GAAP to non-GAAP (unaudited)
Q1 2011
Table 10

                          PPA    Restruc-  Other       Other
($ in millions) GAAP    effects  turing  Incidental Adjustments Non-GAAP
              --------  ------  --------  --------  ---------   --------

Revenue          1,082       -         -         -          -      1,082

Gross profit       506      (3)       (6)       (2)         -        517
  % of revenue    46.8%                                             47.8%

Research and
 development      (154)      -         -         -          -       (154)
Selling            (65)      -         -         -          -        (65)
General and
 administrative   (169)    (70)      (10)       (6)         -        (83)
              --------  ------  --------  --------  ---------   --------
Total
 operating
 expense          (388)    (70)      (10)       (6)         -       (302)

Other income
 (expense)         (10)      -         -       (18)         -          8
              --------  ------  --------  --------  ---------   --------

Operating
 income (loss)     108     (73)      (16)      (26)         -        223
  % of revenue    10.0%                                             20.6%

Interest income
 (expense) net     (81)                                              (81)

Provisions
 for income
 taxes               1                                               (11)1)

Income (loss)
 from continuing
 operations        188     (73)       (16)      (26)       172 2)     131

Income (loss)
 on discontinued
 operations,
 net of tax         13                                     13          -

Net (income)
 loss attributable
 to non-controlling
 interests         (14)                                              (14)
              --------                                          --------

Net income (loss)
 attributable to
 stockholders      187     (73)      (16)      (26)       185        117 3)

Weighted average
 diluted shares
 outstanding (in
 thousands):   256,589                                           256,589

Diluted earnings
 (loss) per
 common share
 attributable to
 stockholders     0.73                                              0.46


1) Cash income taxes
2) Includes: Foreign exchange gain on debt: $190 million; Other financial
   expense: $(8) million; Results relating to equity-accounted investees:
   $(22) million; and difference between book and cash income taxes:
   $12 million.
3) Includes stock-based compensation expense of $6 million.




NXP Semiconductors
Financial Reconciliation - GAAP to non-GAAP (unaudited)
Q4 2010
Table 11

                          PPA    Restruc-  Other       Other
($ in millions) GAAP    effects  turing  Incidental Adjustments Non-GAAP
              --------  ------  --------  --------  ---------   --------

Revenue          1,078       -         -         -         -       1,078

Gross profit       495      (3)       (7)       (3)        -         508
  % of revenue    45.9%                                             47.1%

Research and
 development      (138)      -        (1)        1         -        (138)
Selling            (73)      -         -         -         -         (73)
General and
 administrative   (178)    (66)      (12)       (9)        -         (91)
              --------  ------  --------  --------  --------    --------
Total operating
 expense          (389)    (66)      (13)       (8)        -        (302)

Other income
 (expense)           -       -         5        (7)        -           2
              --------  ------  --------  --------  --------    --------

Operating income
 (loss)            106     (69)      (15)      (18)        -         208
  % of revenue     9.8%                                             19.3%

Interest income
 (expense) net     (80)                                              (80)

Provisions
 for income taxes    5                                               (11)1)

Income (loss)
 from continuing
 operations       (107)    (69)      (15)      (18)     (122)2)      117

Income (loss) on
 discontinued
 operations,
 net of tax         11                                    11           -

Net (income)
 loss attributable
 to non-controlling
 interests         (22)                                              (22)
              --------                                          --------

Net income (loss)
 attributable to
 stockholders     (118)    (69)      (15)      (18)     (111)        95 3)

Weighted average
 diluted shares
 outstanding (in
 thousands):   250,246                                           253,761

Diluted earnings
 (loss) per
 common share
 attributable to
 stockholders    (0.47)                                             0.37

1) Cash income taxes
2) Includes: Foreign exchange loss on debt: $(102) million; Other financial
   expense: $(10) million; Results relating to equity-accounted investees:
   $(26) million; and difference between book and cash income taxes:
   $16 million.
3) Stock-based compensation benefit of $9 million, which resulted from an
   adjustment of estimated forfeitures to actual forfeitures, is not
   included in the non-GAAP results.




NXP Semiconductors
Financial Reconciliation - GAAP to non-GAAP (unaudited)
Q1 2010
Table 12

                          PPA    Restruc-  Other       Other
($ in millions) GAAP    effects  turing  Incidental Adjustments Non-GAAP
              --------  ------  --------  --------  ---------   --------

Revenue         1,085        -         -         -         -       1,085

Gross profit      406      (12)        4        (9)        -         423
  % of revenue   37.4%                                              39.0%

Research and
 development     (151)       -        (1)       (2)        -        (148)
Selling           (65)       -         2         -         -         (67)
General and
 administrative  (188)     (71)      (19)      (15)        -         (83)
              -------   ------  --------  --------  --------    --------
Total
 operating
 expense         (404)     (71)      (18)      (17)        -        (298)

Other income
 (expense)        (17)       -         -       (19)        -           2
              -------   ------  --------  --------  --------    --------

Operating income
 (loss)           (15)     (83)      (14)      (45)        -         127
  % of revenue   (1.4)%                                             11.7%

Interest income
 (expense) net    (80)                                               (80)

Provisions
 for income
 taxes             (5)                                                (3)1)

Income (loss)
 from continuing
 operations      (348)     (83)      (14)      (45)     (250)2)       44

Income (loss) on
 discontinued
 operations,
 net of tax        12                                     12           -

Net (income) loss
 attributable to
 non-controlling
 interests         (9)                                                (9)
              -------                                           --------

Net income (loss)
 attributable to
 stockholders    (345)     (83)      (14)      (45)     (238)         35 3)

Weighted average
 diluted shares
 outstanding (in
 thousands):  215,252                                            216,435

Diluted earnings
 (loss) per
 common share
 attributable to
 stockholders   (1.60)                                              0.16


1) Cash income taxes
2) Includes: Foreign exchange loss on debt: $(222) million; Gain on
   extinguishment of long term debt: $2 million; Other financial expense:
   $(2) million; Results relating to equity-accounted investees:
   $(26) million; and difference between book and cash income taxes:
   $(2) million.
3) Includes stock-based compensation expense of $7 million.


NXP Semiconductors
Adjusted EBITDA
Table 13


($ in millions)                             Q1 2010    Q4 2010    Q1 2011
                                           ---------  ---------  ---------

Net Income                                      (336)       (96)       201
     Income (loss) on discontinued
      operations                                  12         11         13
                                           ---------  ---------  ---------
Income (loss) on continuing operations          (348)      (107)       188

  Reconciling items to EBITDA:
     Financial income/expense                    302        192       (101)
     Provision for income taxes                    5         (5)        (1)
     Depreciation                                111        115         72
     Amortization                                 74         69         73
                                           ---------  ---------  ---------

EBITDA                                           144        264        231

     Results of equity-accounted investees        26         26         22
     Restructuring1)                              (4)        (5)        16
     Other incidental items1)                     42         15         26

                                           ---------  ---------  ---------

Adjusted EBITDA                                  208        300        295
Adjusted EBITDA - last 12 months                 543      1,021      1,108
                                           ---------  ---------  ---------

1) Excluding depreciation property, plant
   and equipment related to:
   restructuring                                  18         20          -
   other incidental items                          3          3          -