NXP Semiconductors Reports Second Quarter 2018 Results
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NXP Semiconductors | | | | | | |
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Table 5: Financial Reconciliation of GAAP to non-GAAP Results (unaudited) | | | | |
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| ($ in millions except share data) | |
Three Months Ended |
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July 1, 2018 | |
April 1, 2018 | |
July 2, 2017 |
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Revenue | |
$ |
2,290 | | |
$ |
2,269 | | |
$ |
2,202 | |
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GAAP Gross profit | |
$ |
1,180 | | |
$ |
1,172 | | |
$ |
1,083 | |
| PPA effects | | | (20 | ) | | | (19 | ) | | | (76 | ) |
| Restructuring | | | - | | | | - | | | | (1 | ) |
| Stock Based Compensation | | | (8 | ) | | | (9 | ) | | | (7 | ) |
| Merger-related costs | | | (2 | ) | | | - | | | | - | |
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Non-GAAP Gross profit | |
$ |
1,210 | | |
$ |
1,200 | | |
$ |
1,167 | |
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GAAP Gross margin | | |
51.5 |
% | | |
51.7 |
% | | |
49.2 |
% |
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Non-GAAP Gross margin | | |
52.8 |
% | | |
52.9 |
% | | |
53.0 |
% |
| GAAP Research and development | | $ | (438 | ) | | $ | (426 | ) | | $ | (381 | ) |
| Stock based compensation | | | (32 | ) | | | (31 | ) | | | (28 | ) |
| Merger-related costs | | | (2 | ) | | | (1 | ) | | | - | |
| Non-GAAP Research and development | | $ | (404 | ) | | $ | (394 | ) | | $ | (353 | ) |
| GAAP Selling, general and administrative | | $ | (242 | ) | | $ | (248 | ) | | $ | (263 | ) |
| PPA effects | | | (1 | ) | | | (3 | ) | | | (6 | ) |
| Restructuring | | | - | | | | (1 | ) | | | (1 | ) |
| Stock based compensation | | | (29 | ) | | | (29 | ) | | | (32 | ) |
| Merger-related costs | | | (21 | ) | | | (25 | ) | | | (35 | ) |
| Other incidentals | | | (4 | ) | | | - | | | | (1 | ) |
| Non-GAAP Selling, general and administrative | | $ | (187 | ) | | $ | (190 | ) | | $ | (188 | ) |
| GAAP amortization of acquisition-related intangible assets | | $ | (363 | ) | | $ | (360 | ) | | $ | (373 | ) |
| PPA effects | | | (363 | ) | | | (360 | ) | | | (373 | ) |
| Non-GAAP amortization of acquisition-related intangible assets | $ | - | | | $ | - | | | $ | - | |
| GAAP Other income (expense) | | $ | - | | | $ | - | | | $ | (16 | ) |
| Restructuring | | | 1 | | | | - | | | | - | |
| Other incidentals | | | - | | | | (1 | ) | | | (15 | ) |
| Non-GAAP Other income (expense) | | $ | (1 | ) | | $ | 1 | | | $ | (1 | ) |
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GAAP Operating income (loss) | |
$ |
137 | | |
$ |
138 | | |
$ |
50 | |
| PPA effects | | | (384 | ) | | | (382 | ) | | | (455 | ) |
| Restructuring | | | 1 | | | | (1 | ) | | | (2 | ) |
| Stock based compensation | | | (69 | ) | | | (69 | ) | | | (67 | ) |
| Merger-related costs | | | (25 | ) | | | (26 | ) | | | (35 | ) |
| Other incidentals | | | (4 | ) | | | (1 | ) | | | (16 | ) |
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Non-GAAP Operating income (loss) | |
$ |
618 | | |
$ |
617 | | |
$ |
625 | |
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GAAP Operating margin | | |
6.0 |
% | | |
6.1 |
% | | |
2.3 |
% |
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Non-GAAP Operating margin | | |
27.0 |
% | | |
27.2 |
% | | |
28.4 |
% |
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GAAP Financial income (expense) | | $ | (71 | ) | | $ | (68 | ) | | $ | (75 | ) |
| Non-cash interest expense on convertible notes | | | (11 | ) | | | (11 | ) | | | (10 | ) |
| Foreign exchange gain (loss) | | | - | | | | (3 | ) | | | (3 | ) |
| Extinguishment on debt | | | (26 | ) | | | - | | | | - | |
| Other financial expense | | | (3 | ) | | | (3 | ) | | | (3 | ) |
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Non-GAAP Financial income (expense) | |
$ |
(31 |
) | |
$ |
(51 |
) | |
$ |
(59 |
) |
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