Q3 2013
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Revenue $ 1,249 million
GAAP Gross margin 45.6%
GAAP Operating margin 13.5%
GAAP Diluted earnings per share $ 0.60
Non-GAAP Gross margin 46.8%
Non-GAAP Operating margin 22.8%
Non-GAAP Diluted earnings per share $ 0.85
- Trailing twelve month adjusted EBITDA $1,279 million
- Net debt reduced $124 million year-on-year to $2,756 million
- Record quarterly non-GAAP free cash flow of $244 million, 20% of revenue
NXP Semiconductors N.V. (
"Our revenue results for the third quarter of 2013 came in essentially in-line with the mid-point of our guidance, as NXP delivered Product revenue of $1,213 million, approximately a five percent sequential increase, and an eight percent increase from the comparable prior year period. Total NXP revenue in the third quarter was $1,249 million, a five percent sequential increase, and nearly a seven percent increase from the comparable year ago period," said Richard Clemmer, NXP Chief Executive Officer.
"Our revenue performance during the quarter reflected record revenue across nearly all of our HPMS end-markets as segment growth achieved nearly 15% year-on-year growth. We experienced particularly strong growth in our Infrastructure & Industrial and our Portable & Computing businesses, a result of new design wins ramping into production. Our Automotive business delivered good sequential growth due to better than seasonal demand, combined record sales of our entertainment and keyless-entry products, along with strong sequential growth of in-vehicle networking products. Our Identification business delivered in-line performance, as we experienced the anticipated pause in banking and mobile transaction programs, offset by good demand for our secure identification products. The revenue performance of the Standard products segment was slightly below our expectations as a result of weaker than expected demand in mobile for both the Logic and Discrete businesses.
"From an earnings perspective, we exceeded guidance due to a combination of significantly improved sequential gross margin within our Standard Products segment, better HPMS gross margin, and good overall operating expense control. We are pleased to see the operational challenges in our Standard Products segment resolved, and the group making good progress toward our long-term model. Taken together, our above market growth and improving margin performance resulted in 20 percent non-GAAP free cash flow margin during the quarter, a new record for NXP. Our strategy of providing unique and differentiated product solutions continues to resonate with our customers, and should result in continued long-term growth in excess of the overall end market," said Clemmer.
Summary of Third Quarter 2013 Results ($ millions, except EPS, unaudited)
Q3 2013 Q2 2013 Q3 2012 Q - Q Y - Y
--------- --------- --------- ------ ------
Product Revenue $ 1,213 $ 1,159 $ 1,120 5% 8%
Manufacturing
Operations $ 36 $ 29 $ 49 24% -27%
Corporate & Other $ - $ - $ 1 NM NM
--------- --------- ---------
Total Revenue $ 1,249 $ 1,188 $ 1,170 5% 7%
GAAP Gross Profit $ 570 $ 535 $ 536 7% 6%
Gross Profit
Adjustments (1) $ (15) $ (5) $ (7)
Non-GAAP Gross Profit $ 585 $ 540 $ 543 8% 8%
GAAP Gross Margin 46% 45% 46%
Non-GAAP Gross Margin 47% 46% 46%
GAAP Operating Income $ 168 $ 170 $ 168 -1% 0%
Operating Income
Adjustments (1) (117) (86) (76)
Non-GAAP Operating
Income $ 285 $ 256 $ 244 11% 17%
GAAP Operating Margin 13% 14% 14%
Non-GAAP Operating
Margin 23% 22% 21%
GAAP Net Income /
(Loss) $ 155 $ 111 $ 115 40% 35%
Net Income
Adjustments (1) (64) (71) (39)
Non-GAAP Net Income /
(Loss) $ 219 $ 182 $ 154 20% 42%
GAAP EPS $ 0.60 $ 0.43 $ 0.45 40% 33%
EPS Adjustments (1) $ (0.25) $ (0.28) $ (0.16)
Non-GAAP EPS $ 0.85 $ 0.71 $ 0.61 20% 39%
