NXP Semiconductors Reports Fourth Quarter and Full-year 2018 Results
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NXP Semiconductors | | | | | | | | | | | |
Table 5: Financial Reconciliation of GAAP to non-GAAP Results (unaudited) | | | | | | | | | | ($ in millions except share data) | |
Three Months Ended | |
Full Year | | | |
Dec. 31, 2018 | |
Sept. 30, 2018 | |
Dec. 31, 2017 | | |
2018 | | | |
2017 | | |
Revenue | |
$ |
2,403 | | |
$ |
2,445 | | |
$ |
2,456 | | |
$ |
9,407 | | |
$ |
9,256 | | |
GAAP Gross profit | |
$ |
1,243 | | |
$ |
1,256 | | |
$ |
1,242 | | |
$ |
4,851 | | |
$ |
4,619 | | | PPA effects | | | (19 | ) | | | (20 | ) | | | (79 | ) | | | (78 | ) | | | (273 | ) | | Restructuring | | | - | | | | - | | | | - | | | | - | | | | (3 | ) | | Stock Based Compensation | | | (12 | ) | | | (11 | ) | | | (10 | ) | | | (40 | ) | | | (33 | ) | | Merger-related costs | | | (1 | ) | | | (8 | ) | | | - | | | | (11 | ) | | | (1 | ) | | Other incidentals | | | - | | | | - | | | | - | | | | - | | | | 4 | | |
Non-GAAP Gross profit | |
$ |
1,275 | | |
$ |
1,295 | | |
$ |
1,331 | | |
$ |
4,980 | | |
$ |
4,925 | | |
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 Research and development | | $ | (403 | ) | | $ | (433 | ) | | $ | (414 | ) | | $ | (1,700 | ) | | $ | (1,554 | ) | | Restructuring | | | - | | | | - | | | | - | | | | - | | | | 12 | | | Stock based compensation | | | (36 | ) | | | (34 | ) | | | (35 | ) | | | (133 | ) | | | (122 | ) | | Merger-related costs | | | (3 | ) | | | (18 | ) | | | (1 | ) | | | (24 | ) | | | (2 | ) | | Non-GAAP Research and development | | $ | (364 | ) | | $ | (381 | ) | | $ | (378 | ) | | $ | (1,543 | ) | | $ | (1,442 | ) | | GAAP Selling, general and administrative | | $ | (251 | ) | | $ | (252 | ) | | $ | (269 | ) | | $ | (993 | ) | | $ | (1,090 | ) | | PPA effects | | | (2 | ) | | | (2 | ) | | | (5 | ) | | | (8 | ) | | | (21 | ) | | Restructuring | | | (1 | ) | | | (5 | ) | | | - | | | | (7 | ) | | | (10 | ) | | Stock based compensation | | | (45 | ) | | | (38 | ) | | | (33 | ) | | | (141 | ) | | | (126 | ) | | Merger-related costs | | | (11 | ) | | | (21 | ) | | | (31 | ) | | | (78 | ) | | | (136 | ) | | Other incidentals | | | (13 | ) | | | (4 | ) | | | (10 | ) | | | (21 | ) | | | (34 | ) | | Non-GAAP Selling, general and administrative | | $ | (179 | ) | | $ | (182 | ) | | $ | (190 | ) | | $ | (738 | ) | | $ | (763 | ) | | GAAP amortization of acquisition-related intangible assets | | $ | (364 | ) | | $ | (362 | ) | | $ | (347 | ) | | $ | (1,449 | ) | | $ | (1,448 | ) | | PPA effects | | | (364 | ) | | | (362 | ) | | | (347 | ) | | | (1,449 | ) | | | (1,448 | ) | | Non-GAAP amortization of acquisition-related intangible assets | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | GAAP Other income (expense) | | $ | (1 | ) | | $ | 2,002 | | | $ | (2 | ) | | $ | 2,001 | | | $ | 1,575 | | | Restructuring | | | - | | | | - | | | | - | | | | 1 | | | | - | | | Merger-related costs | | | - | | | | 1,961 | | | | - | | | | 1,961 | | | | - | | | Other incidentals | | | - | | | | 40 | | | | (2 | ) | | | 39 | | | | 1,573 | | | Non-GAAP Other income (expense) | | $ | (1 | ) | | $ | 1 | | | $ | - | | | $ | - | | | $ | 2 | | |
GAAP Operating income (loss) | |
$ |
224 | | |
$ |
2,211 | | |
$ |
210 | | |
$ |
2,710 | | |
$ |
2,102 | | | PPA effects | | | (385 | ) | | | (384 | ) | | | (431 | ) | | | (1,535 | ) | | | (1,742 | ) | | Restructuring | | | (1 | ) | | | (5 | ) | | | - | | | | (6 | ) | | | (1 | ) | | Stock based compensation | | | (93 | ) | | | (83 | ) | | | (78 | ) | | | (314 | ) | | | (281 | ) | | Merger-related costs | | | (15 | ) | | | 1,914 | | | | (32 | ) | | | 1,848 | | | | (139 | ) | | Other incidentals | | | (13 | ) | | | 36 | | | | (12 | ) | | | 18 | | | | 1,543 | | |
Non-GAAP Operating income (loss) | |
$ |
731 | | |
$ |
733 | | |
$ |
763 | | |
$ |
2,699 | | |
$ |
2,722 | | |
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 |
% | |
GAAP Financial income (expense) | | $ | (77 | ) | | $ | (119 | ) | | $ | (79 | ) | | $ | (335 | ) | | $ | (366 | ) | | Non-cash interest expense on convertible notes | | | (11 | ) | | | (11 | ) | | | (10 | ) | | | (44 | ) | | | (41 | ) | | Foreign exchange gain (loss) | | | (5 | ) | | | (3 | ) | | | (3 | ) | | | (11 | ) | | | (16 | ) | | Extinguishment on debt | | | - | | | | - | | | | - | | | | (26 | ) | | | (41 | ) | | Other financial expense | | | (1 | ) | | | (71 | ) | 1 | ) | | (11 | ) | | | (78 | ) | | | (22 | ) | |
Non-GAAP Financial income (expense) | |
$ |
(60 |
) | |
$ |
(34 |
) | |
$ |
(55 |
) | |
$ |
(176 |
) | |
$ |
(246 |
) | |
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