EINDHOVEN, The Netherlands, Feb. 01, 2021 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the fourth quarter and full year ended December 31, 2020.
“NXP delivered full-year revenue of $8.6 billion, with 2020 being best characterized as two halves with completely different business trends. During the first half of the year, NXP was faced with the unprecedented shut down of our customers in most end markets and geographies because of the global pandemic. As we entered the second half of 2020, and our customers began to re-open, NXP experienced a very robust rebound in demand, which we anticipate continuing throughout 2021. In the fourth quarter, revenue was $2.5 billion, an increase of 9 percent year-on-year, and near the upper end of our guidance range. During this time, we experienced especially strong trends in the Automotive and Mobile end-markets,” said Kurt Sievers, NXP President and Chief Executive Officer.
“Notwithstanding a tumultuous 2020, revenue associated with key strategic growth areas accelerated throughout the year. We continued to maintain focused investments in critical R&D programs, which will assure the company’s long-term success, while simultaneously controlling non-essential, discretionary expenses, resulting in solid operating profitability and strong cash flow. Throughout the year, our number one priority was to assure the safety and health of all our employees. We are extremely proud of their adaptability, dedication and hard work in the face of adversity,” said Sievers.
Key Highlights
- Fourth-quarter revenue was $2.5 billion, up 9.0 percent year-on-year;
- Fourth-quarter GAAP gross margin was 51.4 percent, and GAAP operating margin was 18.5 percent;
- Fourth-quarter non-GAAP gross margin was 52.9 percent, and non-GAAP operating margin was 30.5 percent;
- Full-year cash flow from operations was $2,482 million, with net capex investments of $388 million, resulting in non-GAAP free cash flow of $2,094 million;
- On November 19, 2020, the NXP Board of Directors approved the payment of an interim dividend for the fourth quarter 2020 of $0.375 per ordinary share;
- In 2020, NXP returned $1,047 million to shareholders, through previously announced share repurchases and dividend payments;
- On September 28, 2020, subsequent to the close of NXP's third quarter, the company fully redeemed the $1.35 billion of outstanding principal of the 4.125% Senior Notes due 2021 and the $400 million of outstanding principal of the 4.625% Senior Notes due 2022. The total amount of these redemptions, $1.83 billion, were paid from available cash on balance sheet.
Summary of Reported Fourth Quarter and Full-year 2020 ($ millions, unaudited ) (1)
| Q4 2020 | Q3 2020 | Q4 2019 | Q - Q | Y - Y | 2020 | 2019 | Y-Y | |||||||||||
| Total Revenue | $ | 2,507 | $ | 2,267 | $ | 2,301 | 11% | 9% | $ | 8,612 | $ | 8,877 | -3% | |||||
| GAAP Gross Profit | $ | 1,288 | $ | 1,090 | $ | 1,209 | 18% | 7% | $ | 4,235 | $ | 4,618 | -8% | |||||
| Gross Profit Adjustments (i) | $ | (38 | ) | $ | (45 | ) | $ | (39 | ) | $ | (165 | ) | $ | (131 | ) | |||
| Non-GAAP Gross Profit | $ | 1,326 | $ | 1,135 | $ | 1,248 | 17% | 6% | $ | 4,400 | $ | 4,749 | -7% | |||||
| GAAP Gross Margin | 51.4 | % | 48.1 | % | 52.5 | % | 49.2 | % | 52.0 | % | ||||||||
| Non-GAAP Gross Margin | 52.9 | % | 50.1 | % | 54.2 | % | 51.1 | % | 53.5 | % | ||||||||
| GAAP Operating Income / (Loss) | $ | 463 | $ | 32 | $ | 197 | 1,347% | 135% | $ | 418 | $ | 641 | -35% | |||||
| Operating Income Adjustments (i) | $ | (301 | ) | $ | (554 | ) | $ | (490 | ) | $ | (1,810 | ) | $ | (1,932 | ) | |||
| Non-GAAP Operating Income | $ | 764 | $ | 586 | $ | 687 | 30% | 11% | $ | 2,228 | $ | 2,573 | -13% | |||||
| GAAP Operating Margin | 18.5 | % | 1.4 | % | 8.6 | % | 4.9 | % | 7.2 | % | ||||||||
| Non-GAAP Operating Margin | 30.5 | % | 25.8 | % | 29.9 | % | 25.9 | % | 29.0 | % | ||||||||
