EINDHOVEN, The Netherlands, July 29, 2019 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter of 2019, ended June 30, 2019.
“NXP delivered revenue of $2.2 billion during the second quarter. With sales slightly better than the midpoint 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 $716 million to our shareholders consistent with our long-term capital return policy. Looking forward, we continue to be optimistic that our product portfolio investments are addressing our customers’ long-term requirements, while in the short-term, the global demand environment has generally not improved,” said Richard Clemmer, NXP Chief Executive Officer.
Key Highlights
- Revenue was $2.2 billion, down 3 percent year-on-year;
- GAAP gross margin was 51.9 percent, and GAAP operating margin was 7.1 percent;
- Non-GAAP gross margin was 53.3 percent, and non-GAAP operating margin was 28.9 percent;
- Cash flow from operations was $517 million, with net capex investments of $106 million, resulting in non-GAAP free cash flow of $411 million;
- On May 29, 2019, NXP announced it had entered into a definitive agreement to acquire Marvell’s Wireless Connectivity portfolio in an all-cash asset transaction valued at $1.76 billion.
Summary of Reported Second Quarter 2019 ($ millions, unaudited) (1)
| Q2 2019 | Q1 2019 | Q2 2018 | Q - Q | Y - Y | |||||||||||||||||
| Total Revenue | $ | 2,217 | $ | 2,094 | $ | 2,290 | 6 % | -3 % | |||||||||||||
| GAAP Gross Profit | $ | 1,151 | $ | 1,072 | $ | 1,180 | 7 % | -2 % | |||||||||||||
| Gross Profit Adjustments (i) | $ | (30 | ) | $ | (32 | ) | $ | (30 | ) | ||||||||||||
| Non-GAAP Gross Profit | $ | 1,181 | $ | 1,104 | $ | 1,210 | 7 % | -2 % | |||||||||||||
| GAAP Gross Margin | 51.9 | % | 51.2 | % | 51.5 | % | |||||||||||||||
| Non-GAAP Gross Margin | 53.3 | % | 52.7 | % | 52.8 | % | |||||||||||||||
| GAAP Operating Income / (Loss) | $ | 157 | $ | 54 | $ | 137 | 191 % | 15 % | |||||||||||||
| Operating Income Adjustments (i) | (483 | ) | (505 | ) | (481 | ) | |||||||||||||||
| Non-GAAP Operating Income | $ | 640 | $ | 559 | $ | 618 | 14 % | 4 % | |||||||||||||
| GAAP Operating Margin | 7.1 | % | 2.6 | % | 6.0 | % | |||||||||||||||
| Non-GAAP Operating Margin | 28.9 | % | 26.7 | % | 27.0 | % | |||||||||||||||
| Additional Information | |||||||||||||||||||||
| Automotive | $ | 1,031 | $ | 1,036 | $ | 1,143 | 0% | -10% | |||||||||||||
| Industrial & IoT | $ | 390 | $ | 368 | $ | 454 | 6% | -14% | |||||||||||||
| Mobile | $ | 297 | $ | 241 | $ | 238 | 23% | 25% | |||||||||||||
| Comm. Infra. & Other | $ | 499 | $ | 449 | $ | 419 | 11% | 19% | |||||||||||||
| Manufacturing Services ("MSA") | $ | - | $ | - | $ | 36 | NM | NM | |||||||||||||
| DIO | 100 | 113 | 111 | ||||||||||||||||||
| DPO | 67 | 74 | 90 | ||||||||||||||||||
| DSO | 32 | 35 | 31 | ||||||||||||||||||
| Cash Conversion Cycle | 65 | 74 | 52 | ||||||||||||||||||
| Channel Inventory (months) | 2.4 | 2.4 | 2.4 | ||||||||||||||||||
| Financial Leverage (ii) | 1.7x | 1.7x | 0.7x | ||||||||||||||||||
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Additional Information for the
Second Quarter 2019
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