NXP Semiconductors Reports Third Quarter 2019 Results

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.

Key Highlights

• 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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