SOURCE: NXP Semiconductors

NXP Semiconductors

July 13, 2010 07:49 ET

Trading Update: NXP Semiconductors Announces Indicative Preliminary Second Quarter 2010 Results

EINDHOVEN, THE NETHERLANDS--(Marketwire - July 13, 2010) -  

Second Quarter 2010 Highlights:

  • Second quarter sales between $1,190M and $1,200M compared to $1,165M in the first quarter of 2010. A comparable sequential sales growth of between 5.5% and 6.4% and a nominal sales growth of between 2.1% and 3.0%.
  • Income from operations for the second quarter between $87M and $93M, compared to nil in the first quarter of 2010.
  • Cash position of $842M at the end of the second quarter, slightly down from $870M at the end of the first quarter, despite interest payments in the second quarter amounting to $110M and unfavourable translation effects on liquid assets of approximately $50M.
  • Total debt at the end of the second quarter amounted to $5,055M, compared to $5,177M at the end of the first quarter of 2010.

Key data

($ in millions, unless otherwise stated) Q1 2010   Q2 2010
       
Sales 1,165   1,190 to 1,200
Income (loss) from operations 0   87 to 93
Effects of PPA, Restructuring charges and Other incidental items (144)   (90) to (94)
Cash and cash equivalents 870   842
Debt 5,177   5,055

NXP Semiconductors today announced its indicative preliminary second quarter 2010 results.

NXP total sales were between $1,190 and 1,200 million in the second quarter of 2010, reflecting comparable growth of between 5.5% and 6.4% and nominal growth of between 2.1% and 3.0%, as compared to the first quarter of 2010. The increase was visible across all business segments and regions. 

Income from operations (IFO) was a profit of between $87 and $93 million in the second quarter of 2010, compared to nil in the first quarter of 2010. IFO in the second quarter of 2010 included depreciation and amortization, excluding PPA effects, which aggregated to a total charge of $85 million, compared to $108 million in the first quarter of 2010. Depreciation and amortization in the second quarter of 2010 included $1 million related to depreciation of property, plant and equipment from disposals that occurred in connection with our restructuring activities and other incidental items, compared to $21 million in the first quarter of 2010.

NXP's cash position at the end of the second quarter of 2010 was $842 million compared to $870 million at the end of the first quarter of 2010. The cash position was impacted by interest payments in the second quarter amounting to $110 million and unfavourable translation effects on liquid assets of approximately $50 million. NXP's total debt amounted to $5,055 million at the end of the second quarter compared to $5,177 million at the end of the first quarter of 2010. The decrease in total debt was due to the exchange rate differences at the end of the second quarter of 2010.

The actual second quarter results may differ materially from these second quarter estimates.

The full Q2 report is expected to be available on the NXP website www.nxp.com/investor in the first half of August.

About NXP Semiconductors
NXP Semiconductors provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power, Digital Processing and manufacturing expertise. These innovations are used in a wide range of automotive, industrial, consumer, lighting, medical, computing and identification applications. Headquartered in Europe, the company has about 28,000 employees working in more than 25 countries and posted sales of USD 3.8 billion in 2009.

Forward-looking Statements
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of NXP and certain plans and objectives of NXP with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

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