Losses up at NXP on increased sales

Losses up at NXP on increased sales

LONDON – Mixed-signal chip company NXP Semiconductor NV (Eindhoven, The Netherlands) has posted an increased loss on sales that climbed sequentially in the second quarter but were down year-on-year.

NXP's revenues were $1,094 million up 11.9 percent sequentially but down 2.4 percent on sales of $1,121 million in 2Q11. In 2Q12 the company made a net loss of $90 million compared with a loss of $24 million in the previous quarter and a net profit iof $84 million in 2Q11.

In a conference call with analysts company executives mentioned slowness in the company's standard products sector and exposure to a slow European market as "headwinds" but spoke confidently about growth in the high-performance mixed-signal business unit and the newly formed portable and computing business unit.

"We are very pleased with our performance during the second quarter of 2012 as we delivered revenue of $1,094 million, which was above the upper end of our guidance range," said Richard Clemmer, CEO of NXP, in a statement.

Clemmer continued: "We experienced growth in every one of our target end markets, notwithstanding the uncertain macro environment we find ourselves operating within. Furthermore, our results during the quarter are a positive indication of the company specific opportunities we have previously communicated. The growth drivers that contributed to our second quarter results are in the early stages and we anticipate further contribution in future periods."

The total debt balance at the end of the second quarter 2012 was $3,819 million, a decline of $10 million from the $3,829 million in the prior quarter. Utilization in NXP wafer fabs averaged 92 percent in the second quarter 2012 compared to 94 percent in the year ago period and 84 percent in the prior quarter.

NXP said 3Q12 total sales revenue would be between $1,143 million and $1,205 million with the mid-point up 7 percent sequentially.


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