EINDHOVEN, The Netherlands, Oct. 08, 2020 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today updated its performance expectations for third quarter 2020.
“Today, based on preliminary financial information, we are pleased to announce a significant improvement in our outlook for the third quarter of 2020. Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets. Additionally, demand improved in both our direct and distribution channels. The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin. Given the improved outlook, we increased operating expenses in relation to non-executive variable incentive compensation, which taken together, resulted in operating profit margin substantially above guidance,” said Kurt Sievers, NXP President and Chief Executive Officer.
Preliminary Results:
| Mid-Point Guidance 3Q 2020 | Preliminary Results 3Q 2020 | |||||||||||||||||||||
| $ millions | GAAP | non-GAAP | GAAP | non-GAAP | ||||||||||||||||||
| Revenue | $ | 2,000 | $ | 2,000 | $ | 2,267 | $ | 2,267 | ||||||||||||||
| Q-Q | 10 | % | 10 | % | 25 | % | 25 | % | ||||||||||||||
| Y-Y | -12 | % | -12 | % | 0 | % | 0 | % | ||||||||||||||
| Gross profit | $ | 950 | $ | 980 | $ | 1,090 | $ | 1,135 | ||||||||||||||
| Gross margin | 47.5 | % | 49.0 | % | 48.1 | % | 50.1 | % | ||||||||||||||
| Operating expense | $ | (995 | ) | $ | (535 | ) | $ | (1,059 | ) | $ | (550 | ) | ||||||||||
| Other income (expense) | $ | (2 | ) | $ | (1 | ) | $ | 1 | $ | 1 | ||||||||||||
| Operating income (loss) | $ | (47 | ) | $ | 444 | $ | 32 | $ | 586 | |||||||||||||
| Operating margin | -2.4 | % | 22.2 | % | 1.4 | % | 25.8 | % | ||||||||||||||
| Financial income (expense) | $ | (100 | ) | $ | (98 | ) | $ | (106 | ) | $ | (100 | ) | ||||||||||
