NXP Semiconductors has recently reported financial results for the third quarter of 2019, ended September 29, 2019.
“NXP delivered revenue of $2.3 billion for the third quarter. With sales near the high-end of our guidance and good expense control, we successfully delivered improved operating profitability above the high-end of our guidance range. Additionally, during the quarter we returned $79 million to our shareholders, for a total of $6.6 billion returned to shareholders since July 2018. Looking forward, we continue to believe that our product portfolio investments are addressing our customers’ long-term requirements, while in the short-term the global demand environment appears to have stabilized, but the intermediate demand environment continues to be uncertain, and has not markedly improved.” said Richard Clemmer, NXP Chief Executive Officer.
- Revenue was $2.3 billion, down 7 percent year-on-year;
- GAAP gross margin was 52.4 percent, and GAAP operating margin was 10.3 percent;
- Non-GAAP gross margin was 53.7 percent, and non-GAAP operating margin was 30.3 percent;
- Cash flow from operations was $746 million, with net capex investments of $115 million, resulting in non-GAAP free cash flow of $631 million;
- On August 29, 2019, the NXP Board of Directors approved the payment of an interim dividend for the third quarter 2019 of $0.375 per ordinary share, reflecting an increase of 50 percent from the prior quarterly dividend.
Additional Information for the Third Quarter 2019:
- For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures” on page 2 of this release.
- Financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA. During the third quarter of 2019, NXP repurchased 0.09 million shares for a total cost of $9.0 million and paid cash dividends of $70 million.
Weighted average number of diluted shares for the three-month period ended September 29, 2019 was 283.5 million.
Cash paid for income taxes related to on-going operations was $39 million. Items not related to on-going operations resulted in additional cash payments of $20 million, which was mainly due to the divestment of the Standard Products business.
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