EINDHOVEN, The Netherlands, Feb. 06, 2019 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the fourth quarter and full year 2018, ended December 31, 2018.
“NXP delivered greater than 5 percent growth in Auto and Secure Connected Devices, resulting in total revenue of $9.41 billion, an increase of 2 percent year-on-year. Our teams continue to be fully focused on driving our long-term strategy, with a very strong pipeline of innovative solutions and excellent customer traction. However, demand has weakened for the first quarter, primarily in the automotive and industrial end-markets in China.” said Richard Clemmer, NXP Chief Executive Officer.
Key Highlights
- Fourth-quarter revenue was $2.4 billion, down 2 percent year-on-year;
- Fourth-quarter GAAP gross margin was 51.7 percent, and GAAP operating margin was 9.3 percent;
- Fourth-quarter non-GAAP gross margin was 53.1 percent, and non-GAAP operating margin was 30.4 percent;
- Full-year cash flow from operations was $4.37 billion, with net capex investments of $610 million, resulting in non-GAAP free cash flow of $3.76 billion;
- In 2018 NXP returned $5.08 billion to shareholders through previously announced share repurchases and dividend payments, reducing our diluted share count by 15 percent or 52 million shares.
Summary of Reported Fourth Quarter and Full-year 2018 ($ millions, unaudited) (1)
| Q4 2018 | Q3 2018 | Q4 2017 | Q - Q | Y - Y | 2018 | 2017 | Y - Y | |||||||||||||||||||||
| Automotive | $ | 960 | $ | 990 | $ | 970 | -3 | % | -1 | % | $ | 3,953 | $ | 3,762 | 5 | % | ||||||||||||
| Secure Connected Devices (SCD) | $ | 729 | $ | 717 | $ | 745 | 2 | % | -2 | % | $ | 2,723 | $ | 2,587 | 5 | % | ||||||||||||
| Secure Interface & Infrastructure (SI&I) | $ | 487 | $ | 511 | $ | 497 | -5 | % | -2 | % | $ | 1,792 | $ | 1,873 | -4 | % | ||||||||||||
| Secure Identification Solutions (SIS) | $ | 136 | $ | 133 | $ | 136 | 2 | % | 0 | % | $ | 554 | $ | 523 | 6 | % | ||||||||||||
| High Performance Mixed Signal (HPMS) | $ | 2,312 | $ | 2,351 | $ | 2,348 | -2 | % | -2 | % | $ | 9,022 | $ | 8,745 | 3 | % | ||||||||||||
| Standard Products (STDP) | $ | - | $ | - | $ | - | $ | - | $ | 118 | NM | |||||||||||||||||
| Product Revenue | $ | 2,312 | $ | 2,351 | $ | 2,348 | -2 | % | -2 | % | $ | 9,022 | $ | 8,863 | 2 | % | ||||||||||||
| Corporate & Other | $ | 91 | $ | 94 | $ | 108 | -3 | % | -16 | % | $ | 385 | $ | 393 | -2 | % | ||||||||||||
| Total Revenue(i) | $ | 2,403 | $ | 2,445 | $ | 2,456 | -2 | % | -2 | % | $ | 9,407 | $ | 9,256 | 2 | % | ||||||||||||
| GAAP Gross Profit | $ | 1,243 | $ | 1,256 | $ | 1,242 | -1 | % | 0 | % | $ | 4,851 | $ | 4,619 | 5 | % | ||||||||||||
| Gross Profit Adjustments (ii) | $ | (32 | ) | $ | (39 | ) | $ | (89 | ) | $ | (129 | ) | $ | (306 | ) | |||||||||||||
| Non-GAAP Gross Profit | $ | 1,275 | $ | 1,295 | $ | 1,331 | -2 | % | -4 | % | $ | 4,980 | $ | 4,925 | 1 | % | ||||||||||||
| GAAP Gross Margin | 51.7 | % | 51.4 | % | 50.6 | % | 51.6 | % | 49.9 | % | ||||||||||||||||||
| Non-GAAP Gross Margin | 53.1 | % | 53.0 | % | 54.2 | % | 52.9 | % | 53.2 | % | ||||||||||||||||||
| GAAP Operating Income / (Loss) | $ | 224 | $ | 2,211 | $ | 210 | -90 | % | 7 | % | $ | 2,710 | $ | 2,102 | 29 | % | ||||||||||||
| Operating Income Adjustments (ii) | (507 | ) | 1,478 | (553 | ) | 11 | (620 | ) | ||||||||||||||||||||
| Non-GAAP Operating Income | $ | 731 | $ | 733 | $ | 763 | 0 | % | -4 | % | $ | 2,699 | $ | 2,722 | -1 | % | ||||||||||||
| GAAP Operating Margin | 9.3 | % | 90.4 | % | 8.6 | % | 28.8 | % | 22.7 | % | ||||||||||||||||||
| Non-GAAP Operating Margin | 30.4 | % | 30.0 | % | 31.1 | % | 28.7 | % | 29.4 | % | ||||||||||||||||||
| Additional Information | ||||||||||||||||||||||||||||
| DIO | 102 | 100 | 99 | 2 | 3 | |||||||||||||||||||||||
| DPO | 80 | 74 | 92 | 6 | (12 | ) | ||||||||||||||||||||||
| DSO | 30 | 32 | 33 | (2 | ) | (3 | ) | |||||||||||||||||||||
| Cash Conversion Cycle | 52 | 58 | 40 | (6 | ) | 12 | ||||||||||||||||||||||
| Channel Inventory (months) | 2.4 | 2.4 | 2.3 | - | 0.1 | |||||||||||||||||||||||
| Financial Leverage (iii) | 1.4x | 1.4x | 1.0x | - | 0.4x | |||||||||||||||||||||||
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Additional Information for the
Fourth Quarter and Full-year 2018
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