NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial
results for the third quarter 2021, ended October 3, 2021.
"NXP delivered third-quarter revenue of $2.9 billion, an
increase of 26 percent versus the year-ago period, and better than
the mid-point of our guidance. Overall, customer adoption of our
latest products as well as long-term demand trends across our end
markets remain at unprecedented levels. We continue to take
additional actions to assure supply to our customers, which
underpins our continued confidence in robust growth in the
remainder of 2021 and through 2022,” said Kurt Sievers, NXP
President and Chief Executive Officer.
Key Highlights for the Third-quarter:
- Revenue was $2.9 billion, up 26.2 percent year-on-year;
- GAAP gross margin was 55.3 percent, and GAAP operating margin
was 24.9 percent;
- Non-GAAP gross margin was 56.5 percent, and non-GAAP operating
margin was 33.5 percent;
- Cash flow from operations was $924 million, with net capex
investments of $200 million, resulting in non-GAAP free cash flow
of $724 million;
- Capital return of $1.3 billion to shareholders through
previously announced share repurchases and dividend payments.
Subsequent to the end of the third quarter, between October 3, 2021
and November 1, 2021, NXP executed via a 10b5-1 program additional
share repurchases totaling $0.3 billion;
- On August 26, 2021, the NXP Board of Directors approved the
payment of an interim dividend for the third quarter 2021 of
$0.5625 per ordinary share; and
- On October 12, 2021, NXP announced that Bill Betz has been
named Executive Vice President and Chief Financial Officer. Mr.
Betz, formerly Senior Vice President, Business Finance for NXP,
replaces Peter Kelly, who previously announced in February 2021 his
decision to retire from NXP in February 2022. Mr. Betz will report
directly to NXP President and Chief Executive Officer Kurt
Sievers.
Summary of Reported Third Quarter 2021 ($ millions,
unaudited) (1)
|
Q3 2021 |
Q2 2021 |
Q3 2020 |
Q - Q |
Y - Y |
Total Revenue |
$ |
2,861 |
|
$ |
2,596 |
|
$ |
2,267 |
|
10% |
26% |
GAAP Gross
Profit |
$ |
1,583 |
|
$ |
1,422 |
|
$ |
1,090 |
|
11% |
45% |
Gross Profit Adjustments (i) |
$ |
(34 |
) |
$ |
(34 |
) |
$ |
(45 |
) |
|
|
Non-GAAP Gross
Profit |
$ |
1,617 |
|
$ |
1,456 |
|
$ |
1,135 |
|
11% |
42% |
GAAP Gross Margin |
55.3 |
% |
54.8 |
% |
48.1 |
% |
|
|
Non-GAAP Gross Margin |
56.5 |
% |
56.1 |
% |
50.1 |
% |
|
|
GAAP Operating Income
/ (Loss) |
$ |
711 |
|
$ |
573 |
|
$ |
32 |
|
24% |
2,122% |
Operating Income Adjustments (i) |
$ |
(248 |
) |
$ |
(257 |
) |
$ |
(554 |
) |
|
|
Non-GAAP Operating
Income |
$ |
959 |
|
$ |
830 |
|
$ |
586 |
|
16% |
64% |
GAAP Operating Margin |
24.9 |
% |
22.1 |
% |
1.4 |
% |
|
|
Non-GAAP Operating Margin |
33.5 |
% |
32.0 |
% |
25.8 |
% |
|
|
Additional
information |
|
|
|
|
|
|
Q3 2021 |
Q2 2021 |
Q3 2020 |
Q - Q |
Y - Y |
Automotive |
$ |
1,455 |
|
$ |
1,262 |
|
$ |
964 |
|
15% |
51% |
Industrial & IoT |
$ |
607 |
|
$ |
571 |
|
$ |
514 |
|
6% |
18% |
Mobile |
$ |
345 |
|
$ |
347 |
|
$ |
337 |
|
-1% |
2% |
Comm. Infra. & Other |
$ |
454 |
|
$ |
416 |
|
$ |
452 |
|
9% |
—% |
DIO |
85 |
|
88 |
|
84 |
|
|
|
DPO |
83 |
|
92 |
|
55 |
|
|
|
DSO |
31 |
|
35 |
|
30 |
|
|
|
Cash Conversion Cycle |
33 |
|
31 |
|
59 |
|
|
|
Channel Inventory (months) |
1.6 |
|
1.6 |
|
2.4 |
|
|
|
Financial Leverage (ii) |
1.9x |
|
1.9x |
|
2.1x |
|
|
|
- Additional Information for the Third Quarter
2021:
- For an explanation of GAAP to non-GAAP adjustments, please see
“Non-GAAP Financial Measures”.
- Financial leverage is defined as net debt divided by trailing
twelve months adjusted EBITDA.
- During the third quarter of 2021, NXP repurchased 5.8 million
shares for a total cost of $1,157 million and paid cash dividends
of $152 million.
- Weighted average number of diluted shares for the three-month
period ended October 3, 2021 was 271.4 million.
- Net cash paid for income taxes related to on-going operations
was $86 million. Net cash paid for income taxes not related to
on-going operations resulted in additional cash payments of $3
million.
Guidance for the Fourth Quarter 2021: ($
millions) (1)
|
Guidance Range |
|
GAAP |
|
Reconciliation |
|
non-GAAP |
|
Low |
|
Mid |
|
High |
|
|
|
Low |
|
Mid |
|
High |
Total
Revenue |
$2,925 |
|
$3,000 |
|
$3,075 |
|
|
|
$2,925 |
|
$3,000 |
|
$3,075 |
Q-Q |
2% |
|
5% |
|
7% |
|
|
|
2% |
|
5% |
|
7% |
Y-Y |
17% |
|
20% |
|
23% |
|
|
|
17% |
|
20% |
|
23% |
Gross
Profit |
$1,602 |
|
$1,660 |
|
$1,717 |
|
$(35) |
|
$1,637 |
|
$1,695 |
|
$1,752 |
Gross Margin |
54.8% |
|
55.3% |
|
55.8% |
|
|
|
56.0% |
|
56.5% |
|
57.0% |
Operating Income
(loss) |
$710 |
|
$758 |
|
$805 |
|
$(257) |
|
$967 |
|
$1,015 |
|
$1,062 |
Operating Margin |
24.3% |
|
25.3% |
|
26.2% |
|
|
|
33.1% |
|
33.8% |
|
34.5% |
Financial Income (expense) |
$(97) |
|
$(97) |
|
$(97) |
|
$(3) |
|
$(94) |
|
$(94) |
|
$(94) |
Note (1) Additional Information:
- GAAP Gross Profit is expected to include Purchase Price
Accounting (“PPA”) effects, $(18) million; Stock Based
Compensation, $(11) million; Other Incidentals, $(6) million;
- GAAP Operating Income (loss) is expected to include PPA
effects, $(156) million; Stock Based Compensation, $(88) million;
Restructuring and Other Incidentals, $(13) million;
- GAAP Financial Income (expense) is expected to include Other
financial expense $(3) million;
- Net cash paid for income taxes related to on-going operations
is expected to be approximately $(100) million;
- Non-controlling interest is expected to be approximately $(9)
million;
- Weighted average diluted share count is expected to be
approximately 270 million.
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. Please note, 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
"Non-GAAP Financial Measures" below. 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.
Non-GAAP Financial Measures
In managing NXP's business on a consolidated basis, management
develops an annual operating plan, which is approved by our Board
of Directors, using non-GAAP financial measures. In measuring
performance against this plan, management considers the actual or
potential impacts on these non-GAAP financial measures from actions
taken to reduce costs with the goal of increasing our gross margin
and operating margin and when assessing appropriate levels of
research and development efforts. In addition, management relies
upon these non-GAAP financial measures when making decisions about
product spending, administrative budgets, and other operating
expenses. We believe that these non-GAAP financial measures, when
coupled with the GAAP results and the reconciliations to
corresponding GAAP financial measures, provide a more complete
understanding of the Company’s results of operations and the
factors and trends affecting NXP’s business. We believe that they
enable investors to perform additional comparisons of our operating
results, to assess our liquidity and capital position and to
analyze financial performance excluding the effect of expenses
unrelated to operations, certain non-cash expenses and share-based
compensation expense, which may obscure trends in NXP's underlying
performance. This information also enables investors to compare
financial results between periods where certain items may vary
independent of business performance, and allow for greater
transparency with respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to,
and not as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. The presentation of
these and other similar items in NXP’s non-GAAP financial results
should not be interpreted as implying that these items are
non-recurring, infrequent, or unusual. Reconciliations of these
non-GAAP measures to the most comparable measures calculated in
accordance with GAAP are provided in the financial statements
portion of this release in a schedule entitled “Financial
Reconciliation of GAAP to non-GAAP Results (unaudited).” Please
refer to the NXP Historic Financial Model file found on the
Financial Information page of the Investor Relations section of our
website at https://investors.nxp.com for additional information
related to our rationale for using these non-GAAP financial
measures, as well as the impact of these measures on the
presentation of NXP's operations.
In addition to providing financial information on a basis
consistent with U.S. generally accepted accounting principles
(“GAAP”), NXP also provides the following selected financial
measures on a non-GAAP basis: (i) Gross profit,
(ii) Gross margin, (iii) Research and development,
(iv) Selling, general and administrative,
(v) Amortization of acquisition-related intangible assets,
(vi) Other income, (vii) Operating income (loss),
(viii) Operating margin, (ix) Financial Income (expense),
(x) adjusted net income, adjusted EBITDA and trailing 12 month
adjusted EBITDA, and (xi) free cash flow and free cash flow as
a percent of Revenue. The non-GAAP information excludes the
amortization of acquisition related intangible assets, the purchase
accounting effect on inventory and property, plant and equipment,
merger related costs (including integration costs), certain items
related to divestitures, share-based compensation expense,
restructuring and asset impairment charges, non-cash interest
expense on convertible notes, extinguishment of debt, and foreign
exchange gains and losses.
Conference Call and Webcast InformationThe
company will host a conference call with the financial community on
Tuesday, November 2, 2021 at 8:00 a.m. U.S. Eastern Daylight Time
(EDT) to review the third quarter 2021 results in detail.
Interested parties may join the scheduled conference call by
dialing the following numbers:
Within the
U.S.: |
|
1 - 888 - 603
- 7644 |
Outside the U.S.: |
|
1 - 484 - 747 - 6631 |
Participant Passcode: |
|
2663054 |
The call will be webcast and can be accessed from the NXP
Investor Relations website https://investors.nxp.com. A replay of
the call will be available on the NXP Investor Relations website
within 24 hours of the actual call.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) enables
secure connections for a smarter world, advancing solutions that
make lives easier, better, and safer. As the world leader in secure
connectivity solutions for embedded applications, NXP is driving
innovation in the automotive, industrial & IoT, mobile, and
communication infrastructure markets. Built on more than 60 years
of combined experience and expertise, the company has approximately
29,000 employees in more than 30 countries and posted revenue of
$8.61 billion in 2020. Find out more at www.nxp.com.
Forward-looking Statements
This document includes forward-looking statements which include
statements regarding NXP’s business strategy, financial condition,
results of operations, and market data, as well as any other
statements which are not historical facts. By their nature,
forward-looking statements are subject to numerous factors, risks
and uncertainties that could cause actual outcomes and results to
be materially different from those projected. These factors, risks
and uncertainties include the following: the duration and spread of
the COVID-19 outbreak, its severity, the actions to contain the
virus or treat its impact, and how quickly and to what extent
normal economic and operating conditions can resume; market demand
and semiconductor industry conditions; the ability to successfully
introduce new technologies and products; the demand for the goods
into which NXP’s products are incorporated; trade disputes between
the U.S. and China, potential increase of barriers to international
trade and resulting disruptions to NXP's established supply chains;
the ability to generate sufficient cash, raise sufficient capital
or refinance corporate debt at or before maturity to meet both
NXP's debt service and research and development and capital
investment requirements; the ability to accurately estimate demand
and match manufacturing production capacity accordingly or obtain
supplies from third-party producers; the potential impact of the
outbreak of COVID-19 on NXP's business, operations, results of
operations, financial condition, workforce or the operations or
decisions of customers, suppliers or business customers; the access
to production capacity from third-party outsourcing partners and
any events that might affect their business or NXP’s relationship
with them including the outbreak of COVID-19 or the requirements to
suspend activities with customers or suppliers because of changing
import and export regulations; the ability to secure adequate and
timely supply of equipment and materials from suppliers; the
ability to avoid operational problems and product defects and, if
such issues were to arise, to correct them quickly; the ability to
form strategic partnerships and joint ventures and to successfully
cooperate with alliance partners; the ability to win competitive
bid selection processes; the ability to develop products for use in
customers’ equipment and products; the ability to successfully hire
and retain key management and senior product engineers; and, the
ability to maintain good relationships with NXP's suppliers. In
addition, this document contains information concerning the
semiconductor industry and NXP’s market and business segments
generally, which is forward-looking in nature and is based on a
variety of assumptions regarding the ways in which the
semiconductor industry and NXP's market and business segments may
develop. NXP has based these assumptions on information currently
available, if any one or more of these assumptions turn out to be
incorrect, actual results may differ from those predicted. While
NXP does not know what impact any such differences may have on its
business, if there are such differences, its future results of
operations and its financial condition could be materially
adversely affected. There can be no assurances that a pandemic,
epidemic or outbreak of a contagious diseases, such as COVID-19,
will not have a material and adverse impact on our business,
operating results and financial condition in the future. Readers
are cautioned not to place undue reliance on these forward-looking
statements, which speak to results only as of the date the
statements were made. Except for any ongoing obligation to disclose
material information as required by the United States federal
securities laws, NXP does not have any intention or obligation to
publicly update or revise any forward-looking statements after we
distribute this document, whether to reflect any future events or
circumstances or otherwise. For a discussion of potential risks and
uncertainties, please refer to the risk factors listed in our SEC
filings. Copies of our SEC filings are available on our Investor
Relations website, www.nxp.com/investor or from the SEC website,
www.sec.gov.
For further information, please contact:
Investors:Jeff Palmerjeff.palmer@nxp.com+1 408 518
5411 |
Media:Jacey Zunigajacey.zuniga@nxp.com+1 512 895
7398 |
NXP-CORP
NXP SemiconductorsTable 1: Condensed
consolidated statement of operations (unaudited)
($ in millions except share data) |
Three months ended |
|
October 3, 2021 |
|
July 4, 2021 |
|
September 27,2020 |
|
|
|
|
|
|
Revenue |
$ |
2,861 |
|
|
$ |
2,596 |
|
|
$ |
2,267 |
|
Cost of revenue |
(1,278 |
) |
|
(1,174 |
) |
|
(1,177 |
) |
Gross
profit |
1,583 |
|
|
1,422 |
|
|
1,090 |
|
Research and development |
(492 |
) |
|
(476 |
) |
|
(438 |
) |
Selling, general and
administrative |
(243 |
) |
|
(234 |
) |
|
(203 |
) |
Amortization of
acquisition-related intangible assets |
(137 |
) |
|
(139 |
) |
|
(418 |
) |
Total operating
expenses |
(872 |
) |
|
(849 |
) |
|
(1,059 |
) |
Other income (expense) |
— |
|
|
— |
|
|
1 |
|
Operating income
(loss) |
711 |
|
|
573 |
|
|
32 |
|
Financial income
(expense): |
|
|
|
|
|
Other financial income
(expense) |
(93 |
) |
|
(100 |
) |
|
(106 |
) |
Income (loss) before
income taxes |
618 |
|
|
473 |
|
|
(74 |
) |
Benefit (provision) for income
taxes |
(95 |
) |
|
(65 |
) |
|
57 |
|
Results relating to
equity-accounted investees |
3 |
|
|
(2 |
) |
|
(1 |
) |
Net income
(loss) |
526 |
|
|
406 |
|
|
(18 |
) |
Less: Net income (loss)
attributable to non-controlling interests |
7 |
|
|
9 |
|
|
4 |
|
Net income (loss)
attributable to stockholders |
519 |
|
|
397 |
|
|
(22 |
) |
|
|
|
|
|
|
Earnings per share
data: |
|
|
|
|
|
Net income (loss)
per common share attributable to stockholders in $ |
Basic |
$ |
1.95 |
|
|
$ |
1.46 |
|
|
$ |
(0.08 |
) |
Diluted |
$ |
1.91 |
|
|
$ |
1.42 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
Weighted
average number of shares of common stock
outstanding during the period (in thousands): |
Basic |
266,557 |
|
|
272,686 |
|
|
279,467 |
|
Diluted |
271,359 |
|
|
278,735 |
|
|
279,467 |
|
|
|
|
|
|
|
NXP SemiconductorsTable 2: Condensed
consolidated balance sheet (unaudited)
|
($ in millions) |
As of |
|
|
October 3, 2021 |
|
July 4, 2021 |
|
September 27,2020 |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
2,303 |
|
|
$ |
2,910 |
|
|
$ |
3,566 |
|
|
Accounts receivable, net |
979 |
|
|
991 |
|
|
755 |
|
|
Inventories, net |
1,173 |
|
|
1,116 |
|
|
1,064 |
|
|
Other current assets |
266 |
|
|
274 |
|
|
219 |
|
Total
current assets |
4,721 |
|
|
5,291 |
|
|
5,604 |
|
Non-current assets: |
|
|
|
|
|
|
Other non-current assets |
1,070 |
|
|
1,094 |
|
|
924 |
|
|
Property, plant and equipment,
net |
2,510 |
|
|
2,375 |
|
|
2,255 |
|
|
Identified intangible assets,
net |
1,741 |
|
|
1,891 |
|
|
2,380 |
|
|
Goodwill |
9,968 |
|
|
9,971 |
|
|
9,959 |
|
Total
non-current assets |
15,289 |
|
|
15,331 |
|
|
15,518 |
|
Total
assets |
20,010 |
|
|
20,622 |
|
|
21,122 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
1,140 |
|
|
1,167 |
|
|
697 |
|
|
Restructuring
liabilities-current |
30 |
|
|
36 |
|
|
25 |
|
|
Other current liabilities |
1,269 |
|
|
1,133 |
|
|
940 |
|
|
Short-term debt |
999 |
|
|
— |
|
|
1,749 |
|
Total
current liabilities |
3,438 |
|
|
2,336 |
|
|
3,411 |
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term debt |
8,594 |
|
|
9,591 |
|
|
7,607 |
|
|
Restructuring liabilities |
13 |
|
|
12 |
|
|
15 |
|
|
Deferred tax liabilities |
84 |
|
|
90 |
|
|
136 |
|
|
Other non-current
liabilities |
909 |
|
|
924 |
|
|
880 |
|
Total
non-current liabilities |
9,600 |
|
|
10,617 |
|
|
8,638 |
|
|
Non-controlling interests |
234 |
|
|
227 |
|
|
197 |
|
|
Stockholders’ equity |
6,738 |
|
|
7,442 |
|
|
8,876 |
|
Total
equity |
6,972 |
|
|
7,669 |
|
|
9,073 |
|
Total
liabilities and equity |
20,010 |
|
|
20,622 |
|
|
21,122 |
|
|
|
|
|
|
|
|
NXP SemiconductorsTable 3: Condensed
consolidated statement of cash flows (unaudited)
($ in millions) |
Three months ended |
|
October 3, 2021 |
|
July 4, 2021 |
|
September 27,2020 |
Cash flows from
operating activities: |
|
|
|
|
|
Net income (loss) |
$ |
526 |
|
|
$ |
406 |
|
|
$ |
(18 |
) |
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities: |
|
|
|
|
|
Depreciation and amortization |
306 |
|
|
305 |
|
|
589 |
|
Stock-based compensation |
81 |
|
|
93 |
|
|
83 |
|
Amortization of discount (premium) on debt, net |
— |
|
|
1 |
|
|
— |
|
Amortization of debt issuance costs |
2 |
|
|
1 |
|
|
3 |
|
Net (gain) loss on sale of assets |
— |
|
|
— |
|
|
(1 |
) |
Results relating to equity-accounted investees |
(3 |
) |
|
2 |
|
|
1 |
|
(Gain) loss on equity securities, net |
(4 |
) |
|
5 |
|
|
— |
|
Deferred tax expense (benefit) |
(6 |
) |
|
— |
|
|
(118 |
) |
Changes in operating
assets and liabilities: |
|
|
|
|
|
(Increase) decrease in receivables and other current assets |
16 |
|
|
(135 |
) |
|
(252 |
) |
(Increase) decrease in inventories |
(57 |
) |
|
(60 |
) |
|
164 |
|
Increase (decrease) in accounts payable and other liabilities |
118 |
|
|
73 |
|
|
82 |
|
(Increase) decrease in other non-current assets |
(46 |
) |
|
(52 |
) |
|
(9 |
) |
Exchange differences |
(3 |
) |
|
1 |
|
|
5 |
|
Other items |
(6 |
) |
|
(4 |
) |
|
(2 |
) |
Net cash provided by
(used for) operating activities |
924 |
|
|
636 |
|
|
527 |
|
Cash flows from
investing activities: |
|
|
|
|
|
Purchase of identified intangible assets |
(27 |
) |
|
(35 |
) |
|
(22 |
) |
Capital expenditures on property, plant and equipment |
(201 |
) |
|
(150 |
) |
|
(70 |
) |
Purchase of equipment leased to others |
(14 |
) |
|
— |
|
|
— |
|
Insurance recoveries received for equipment damage |
7 |
|
|
— |
|
|
— |
|
Proceeds from the disposals of property, plant and equipment |
1 |
|
|
— |
|
|
2 |
|
Purchase of interests in businesses, net of cash acquired |
(16 |
) |
|
(1 |
) |
|
— |
|
Purchase of investments |
— |
|
|
(4 |
) |
|
(15 |
) |
Proceeds from return of equity investments |
2 |
|
|
1 |
|
|
— |
|
Net cash provided by
(used for) investing activities |
(248 |
) |
|
(189 |
) |
|
(105 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from the issuance of long-term debt |
— |
|
|
2,000 |
|
|
— |
|
Cash paid for debt issuance costs |
— |
|
|
(22 |
) |
|
— |
|
Dividends paid to non-controlling interests |
— |
|
|
— |
|
|
(34 |
) |
Dividends paid to common stockholders |
(152 |
) |
|
(155 |
) |
|
(105 |
) |
Proceeds from issuance of common stock through stock plans |
29 |
|
|
— |
|
|
27 |
|
Purchase of treasury shares and restricted stock unit
withholdings |
(1,157 |
) |
|
(1,203 |
) |
|
(12 |
) |
Other, net |
— |
|
|
(1 |
) |
|
— |
|
Net cash provided by
(used for) financing activities |
(1,280 |
) |
|
619 |
|
|
(124 |
) |
Effect of changes in exchange
rates on cash positions |
(3 |
) |
|
2 |
|
|
2 |
|
Increase (decrease) in cash
and cash equivalents |
(607 |
) |
|
1,068 |
|
|
300 |
|
Cash and cash equivalents at
beginning of period |
2,910 |
|
|
1,842 |
|
|
3,266 |
|
Cash and cash
equivalents at end of period |
2,303 |
|
|
2,910 |
|
|
3,566 |
|
Net cash paid during the period for: |
|
|
|
|
|
Interest |
56 |
|
|
104 |
|
|
54 |
|
Income taxes, net of
refunds |
89 |
|
|
121 |
|
|
39 |
|
Net gain (loss) on
sale of assets: |
|
|
|
|
|
Cash proceeds from the sale of
assets |
— |
|
|
— |
|
|
2 |
|
Book value of these
assets |
— |
|
|
— |
|
|
(1 |
) |
Non-cash investing
activities: |
|
|
|
|
|
Non-cash capital
expenditures |
224 |
|
|
167 |
|
|
62 |
|
NXP SemiconductorsTable 4: Financial
Reconciliation of GAAP to non-GAAP Results (unaudited)
($ in millions) |
Three months ended |
|
October 3, 2021 |
|
July 4, 2021 |
|
September 27,2020 |
Revenue |
$ |
2,861 |
|
|
$ |
2,596 |
|
|
$ |
2,267 |
|
GAAP Gross
Profit |
$ |
1,583 |
|
|
$ |
1,422 |
|
|
$ |
1,090 |
|
PPA Effects |
(20 |
) |
|
(18 |
) |
|
(22 |
) |
Restructuring |
— |
|
|
— |
|
|
(12 |
) |
Stock Based Compensation |
(10 |
) |
|
(12 |
) |
|
(11 |
) |
Merger-related costs |
— |
|
|
— |
|
|
— |
|
Other incidentals |
(4 |
) |
|
(4 |
) |
|
— |
|
Non-GAAP Gross
Profit |
$ |
1,617 |
|
|
$ |
1,456 |
|
|
$ |
1,135 |
|
GAAP Gross
margin |
55.3 |
% |
|
54.8 |
% |
|
48.1 |
% |
Non-GAAP Gross
margin |
56.5 |
% |
|
56.1 |
% |
|
50.1 |
% |
GAAP Research and development |
$ |
(492 |
) |
|
$ |
(476 |
) |
|
$ |
(438 |
) |
Restructuring |
— |
|
|
(1 |
) |
|
(7 |
) |
Stock based compensation |
(40 |
) |
|
(41 |
) |
|
(39 |
) |
Other incidentals |
(2 |
) |
|
1 |
|
|
(5 |
) |
Non-GAAP Research and development |
$ |
(450 |
) |
|
$ |
(435 |
) |
|
$ |
(387 |
) |
GAAP Selling, general and administrative |
$ |
(243 |
) |
|
$ |
(234 |
) |
|
$ |
(203 |
) |
PPA effects |
(2 |
) |
|
(2 |
) |
|
(1 |
) |
Restructuring |
— |
|
|
— |
|
|
(2 |
) |
Stock based compensation |
(31 |
) |
|
(40 |
) |
|
(33 |
) |
Merger-related costs |
— |
|
|
— |
|
|
(1 |
) |
Other incidentals |
(3 |
) |
|
(1 |
) |
|
(3 |
) |
Non-GAAP Selling, general and administrative |
$ |
(207 |
) |
|
$ |
(191 |
) |
|
$ |
(163 |
) |
GAAP amortization of acquisition-related intangible assets |
$ |
(137 |
) |
|
$ |
(139 |
) |
|
$ |
(418 |
) |
PPA effects |
(137 |
) |
|
(139 |
) |
|
(418 |
) |
Non-GAAP amortization of acquisition-related intangible assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
GAAP Other income (expense) |
$ |
— |
|
|
$ |
— |
|
|
$ |
1 |
|
Other incidentals |
1 |
|
|
— |
|
|
— |
|
Non-GAAP Other income (expense) |
$ |
(1 |
) |
|
$ |
— |
|
|
$ |
1 |
|
GAAP Operating income
(loss) |
$ |
711 |
|
|
$ |
573 |
|
|
$ |
32 |
|
PPA effects |
(159 |
) |
|
(159 |
) |
|
(441 |
) |
Restructuring |
— |
|
|
(1 |
) |
|
(21 |
) |
Stock based compensation |
(81 |
) |
|
(93 |
) |
|
(83 |
) |
Merger-related costs |
— |
|
|
— |
|
|
(1 |
) |
Other incidentals |
(8 |
) |
|
(4 |
) |
|
(8 |
) |
Non-GAAP Operating
income (loss) |
$ |
959 |
|
|
$ |
830 |
|
|
$ |
586 |
|
GAAP Operating
margin |
24.9 |
% |
|
22.1 |
% |
|
1.4 |
% |
Non-GAAP Operating
margin |
33.5 |
% |
|
32.0 |
% |
|
25.8 |
% |
GAAP Financial income
(expense) |
$ |
(93 |
) |
|
$ |
(100 |
) |
|
$ |
(106 |
) |
Foreign exchange gain (loss) |
1 |
|
|
(1 |
) |
|
(3 |
) |
Other financial income (expense) |
— |
|
|
(8 |
) |
|
(3 |
) |
Non-GAAP Financial
income (expense) |
$ |
(94 |
) |
|
$ |
(91 |
) |
|
$ |
(100 |
) |
|
|
|
|
|
|
NXP SemiconductorsTable 5: Adjusted
EBITDA and Free Cash Flow (unaudited)
($ in millions) |
Three months ended |
|
October 3, 2021 |
|
July 4, 2021 |
|
September 27,2020 |
Net income (loss) |
$ |
526 |
|
|
$ |
406 |
|
|
$ |
(18 |
) |
Reconciling items to
adjusted net income |
|
|
|
|
|
Financial (income) expense |
93 |
|
|
100 |
|
|
106 |
|
(Benefit) provision for income taxes |
95 |
|
|
65 |
|
|
(57 |
) |
Depreciation |
139 |
|
|
135 |
|
|
139 |
|
Amortization |
167 |
|
|
170 |
|
|
450 |
|
Adjusted net income |
$ |
1,020 |
|
|
$ |
876 |
|
|
$ |
620 |
|
Reconciling items to
adjusted EBITDA |
|
|
|
|
|
Results of equity-accounted investees |
(3 |
) |
|
2 |
|
|
1 |
|
Restructuring |
— |
|
|
1 |
|
|
21 |
|
Stock based costs |
81 |
|
|
93 |
|
|
83 |
|
Merger-related costs |
— |
|
|
— |
|
|
1 |
|
Other incidental items 1) |
8 |
|
|
4 |
|
|
2 |
|
Adjusted EBITDA |
$ |
1,106 |
|
|
$ |
976 |
|
|
$ |
728 |
|
Trailing twelve month
adjusted EBITDA |
$ |
3,924 |
|
|
$ |
3,546 |
|
|
$ |
2,708 |
|
|
|
|
|
|
|
1) Excluding amortization
related to: |
|
|
|
|
|
- other incidental items |
$ |
— |
|
|
$ |
— |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
Three months ended |
|
October 3, 2021 |
|
July 4, 2021 |
|
September 27,2020 |
Net cash provided by
(used for) operating activities |
$ |
924 |
|
|
$ |
636 |
|
|
$ |
527 |
|
Net capital expenditures on
property, plant and equipment |
(200 |
) |
|
(150 |
) |
|
(68 |
) |
Non-GAAP free cash
flow |
$ |
724 |
|
|
$ |
486 |
|
|
$ |
459 |
|
Non-GAAP free cash
flow as percent of Revenue |
25 |
% |
|
19 |
% |
|
20 |
% |
|
|
|
|
|
|
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