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Freescale Semiconductor Reports Third-Quarter 2005 Results

October 20, 2005 by Jeff Shepard

Freescale Semiconductor Inc. (Austin, TX), a manufacturer of embedded semiconductors for the automotive, consumer, industrial, networking, and wireless markets, reported its financial results for the third quarter ended September 30, 2005. Third-quarter 2005 results include a $26 million pre-tax gain associated with the sale of the company's timing solutions business and a $10 million write-down of receivables the company determined were impaired due to the bankruptcy of the US subsidiaries of Delphi Corp. Excluding the gain on sale and the receivable write-down, sales were $1.46 billion, gross margin was 43.7 percent, and diluted earnings per share were $0.35.

Net sales in the third quarter of 2005 were $1.45 billion, compared to $1.47 billion in the second quarter of 2005 and $1.43 billion in the third quarter of 2004. Gross margin in the third quarter of 2005 was 43.3 percent, compared to 41.6 percent in the second quarter of 2005 and 39.0 percent in the third quarter of 2004. Operating earnings for the third quarter of 2005 were $153 million, or 10.6 percent of net sales. The company reported operating earnings of $139 million for the second quarter of 2005 and operating earnings of $81 million for the third quarter of 2004. Net earnings for the third quarter of 2005 were $164 million, or $0.38 per fully diluted share, compared to $122 million, or $0.29 per fully diluted share, in the second quarter of 2005, and $57 million, or $0.15 per fully diluted share, in the third quarter of 2004.