NXP Reports $1,188 Million Q2 Revenue and 45% Gross Margins

NXP Semiconductors N.V. reported financial results for the second quarter of 2013, ended June 30, 2013, including revenue of $1,188 million, gross margin of 45%, operating margin of 14.3% and diluted earnings per share of $0.43. The company also announced a new 10 million share repurchase program, new debt reduction of $170 million in the past 12 months to a current level of $2,812 million and a 12-month adjusted EBITDA of $1,235 million.

“Our revenue results for the second quarter of 2013 came in at the higher end of our guidance, as NXP delivered Product revenue of $1,159 million, a ten percent sequential increase, and a twelve percent increase from the comparable year ago period. Total NXP revenue in the second quarter was $1,188 million, just over a nine percent sequential increase, and nearly a nine percent increase from the comparable year ago period,” said Richard Clemmer, NXP Chief Executive Officer.

“Our revenue performance during the quarter reflected robust double digit sequential growth across all of our HPMS end-markets with a strong rebound in growth in our Infrastructure & Industrial and our Portable & Computing business. Our Identification business continues to perform very well, as a result of strong ongoing demand for our banking and transit products, offset slightly by product transitions in our mobile payments business. Our Automotive business delivered strong sequential growth due to better than seasonal demand, combined with the launch of a new customer entertainment program and the continued ramp of major keyless entry programs.

“During the second quarter both the Identification and Automotive business’ achieved historic revenue record levels – a positive reflection of the intense passion and customer focus both teams demonstrate in managing their business. The revenue performance of the Standard products segment was slightly below our expectations as a result of weaker than expected demand for certain Logic products within the mobile end-market. From an earnings perspective, we exceeded guidance primarily as a result of better operating expense control combined with strong revenue growth in our HPMS segment.

“Our focus continues to be delivering top-line growth in excess of our peers, while delivering best in class operating profitability. The overall performance of HPMS is very good, with operating margin solidly within our long-term target, and we are comfortable delivering on our intermediate profitability goals. Our strategy of providing unique and differentiated product solutions continues to resonate with our customers, and should result in continued long-term growth in excess of the overall end market,” said Clemmer.