- On February 6, 2014, NXP announced that it, effective same date, expanded its existing stock repurchase program. Under the expanded stock repurchase program, NXP may repurchase up to twenty-five (25) million shares of its common stock from time to time in both privately negotiated and open market transactions, subject to management's evaluation of market conditions, terms of private transactions, the best interests of NXP shareholders, applicable legal requirements and other factors.
- NXP repurchased approximately 8.3 million shares in the first quarter of 2014 for a total cost of approximately $458 million.
- Net cash interest paid in the first quarter of 2014 was $45 million, versus $54 million in the prior year period.
- On February 14, 2014, NXP entered into a new $400 million aggregate principal amount senior secured term loan facility due March 4, 2017. Concurrently, NXP called the $486 million principal amount senior secured term loan facility due March 4, 2017. A $100 million draw-down under our existing revolving credit facility was used to settle the combined transactions, as well as pay the related call premium of $5 million and accrued interest of $4 million. Approximately $5 million will be used for general corporate purposes.
- SSMC, NXP's consolidated joint-venture wafer fab with TSMC, reported first quarter 2014 operating income of $36 million, EBITDA of $48 million and a closing cash balance of $396 million.
- Utilization in NXP wafer fabs averaged 93 percent in the first quarter of 2014 compared to 83 percent in the prior year period and 95 percent in the prior quarter.
Guidance for the Second Quarter 2014: ($ millions, except share count and
EPS)(1)
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Guidance
Range
Low Mid High
--------- --------- ---------
Product Revenue $ 1,261 $ 1,286 $ 1,310
Q-Q 4% 7% 9%
Other Revenue $ 40 $ 40 $ 40
--------- --------- ---------
Total Revenue $ 1,301 $ 1,326 $ 1,350
Q-Q 4% 6% 8%
Non-GAAP Gross Profit $ 622 $ 639 $ 656
Non-GAAP Gross Margin 48% 48% 49%
Non-GAAP Operating Income $ 312 $ 324 $ 337
Non-GAAP Operating Margin 24% 24% 25%
Interest Expense $ 35 $ 35 $ 35
Cash Taxes $ 8 $ 8 $ 8
Non-controlling Interest $ 17 $ 17 $ 17
--------- --------- ---------
Non-GAAP Net Income $ 252 $ 264 $ 277
Ave. Diluted Shares 252 252 252
Non - GAAP EPS $ 1.00 $ 1.05 $ 1.10
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Note (1): NXP has based the guidance included in this release on judgments
and estimates that management believes are reasonable given its assessment
of historical trends and other information reasonably available as of the
date of this release. The guidance included in this release consists of
predictions only, and is subject to a wide range of known and unknown risks
and uncertainties, many of which are beyond NXP's control. The guidance
included in this release should not be regarded as representations by NXP
that the estimated results will be achieved. Actual results may vary
materially from the guidance we provide today. In relation to the use of
non-GAAP financial information see the note regarding "Use of Non-GAAP
Financial Information" elsewhere in this release. For the factors, risks and
uncertainties to which judgments, estimates and forward-looking statements
generally are subject see the note regarding "Forward-looking Statements."
We undertake no obligation to publicly update or revise any forward-looking
statements, including the guidance set forth herein, to reflect future
events or circumstances. Considering the uncertain magnitude and variability
of the foreign exchange consequences upon "PPA effects," "restructuring
costs," "other incidental items" and any interest expense or taxes in future
periods, management believes that GAAP financial measures are not available
for NXP without unreasonable efforts on a forward looking basis.
