| Q3 2016 | ||||
| Revenue | $2.469 billion | |||
| GAAP Gross margin | 48.0 | % | ||
| GAAP Operating margin | 7.0 | % | ||
| Non-GAAP Gross margin | 50.5 | % | ||
| Non-GAAP Operating margin | 28.0
| %
| ||
EINDHOVEN, The Netherlands, Oct. 26, 2016 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ:NXPI) today reported financial results for the third quarter 2016, ended October 2, 2016, and provided guidance for the fourth quarter of 2016.
“NXP delivered very good results for the third quarter of 2016, with revenue at $2.47 billion, an increase of 62 percent year on year, an increase of four percent versus the prior quarter and essentially in-line with the mid-point of our guidance. HPMS segment revenue was $2.1 billion, an increase of 80 percent year on year, and an increase of approximately four percent from the prior quarter. Standard Product segment revenue was $320 million, a decrease of two percent year on year and an increase of six percent from the prior quarter. Our GAAP diluted income per share was $0.26 because of positive fall through on incrementally higher revenue, improved operational execution and strong operating expense control. We generated $718 million in operating cash flow during the quarter, and invested $98 million in net capex, resulting in non-GAAP free cash flow of $620 million, or 25 percent of revenue. During the quarter, we returned cash to shareholders, by repurchasing $555 million or approximately 6.5 million shares of our stock,” said Richard Clemmer, NXP Chief Executive Officer.
“On a comparable basis, taking into account the Freescale merger and product line divestures, total revenue was down approximately three percent year on year, notwithstanding our Automotive operating segment which delivered five percent year on year comparable growth. We believe we have begun to see incremental positive trends in most of our businesses with comparable sequential revenue up over four percent into the third quarter.
“In summary, I am pleased with the progress we continue to achieve, our efforts relative to the merger integration and targeted synergy capture continues to be very positive. Customer feedback on the benefits the combined portfolio can deliver are very encouraging, and we believe we are ideally positioned to achieve our long term goals,” said Clemmer.
Summary of Reported Third Quarter 2016 Results ($ millions, unaudited)
| Q3 2016 | Q2 2016 | Q3 2015 | Q - Q | Y - Y | ||||||||||||||||||||
| Total Revenue | $ | 2,469 | $ | 2,365 | $ | 1,522 | 4.4 | % | 62.2 | % | ||||||||||||||
| GAAP Gross Profit | $ | 1,184 | $ | 1,099 | $ | 740 | 7.7 | % | 60.0 | % | ||||||||||||||
| Gross Profit Adjustments (1) | $ | (63 | ) | $ | (84 | ) | $ | (8 | ) | |||||||||||||||
| Non-GAAP Gross Profit | $ | 1,247 | $ | 1,183 | $ | 748 | 5.4 | % | 66.7 | % | ||||||||||||||
| GAAP Gross Margin | 48.0 | % | 46.5 | % | 48.6 | % | ||||||||||||||||||
| Non-GAAP Gross Margin | 50.5 | % | 50.0 | % | 49.1 | % | ||||||||||||||||||
| GAAP Operating Income / (Loss) | $ | 174 | $ | (26 | ) | $ | 375 | NM | -53.6 | % | ||||||||||||||
| Operating Income Adjustments (1) | (517 | ) | (632 | ) | (74 | ) | ||||||||||||||||||
| Non-GAAP Operating Income | $ | 691 | $ | 606 | $ | 449 | 14.0 | % | 53.9 | % | ||||||||||||||
| GAAP Operating Margin | 7.0 | % | -1.1 | % | 24.6 | % | ||||||||||||||||||
| Non-GAAP Operating Margin | 28.0 | % | 25.6 | % | 29.5 | % | ||||||||||||||||||
