Press release
NXP Semiconductors Updates View of Third Quarter 2020 Performance and Sets Date to Review Detailed Financial Results
EINDHOVEN, The Netherlands, Oct. 08, 2020 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today updated its performance expectations for third
About this update from Nxp Semiconductors N.v.
[{"type":"text","content":"EINDHOVEN, The Netherlands, Oct. 08, 2020 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today updated its performance expectations for third quarter 2020.\n “Today, based on preliminary financial information, we are pleased to announce a significant improvement in our outlook for the third quarter of 2020. Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets. Additionally, demand improved in both our direct and distribution channels. The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin. Given the improved outlook, we increased operating expenses in relation to non-executive variable incentive compensation, which taken together, resulted in operating profit margin substantially above guidance,” said Kurt Sievers, NXP President and Chief Executive Officer. Preliminary Results: Mid-Point Guidance 3Q 2020 Preliminary Results 3Q 2020 $ millions GAAP non-GAAP GAAP non-GAAP Revenue $ 2,000 $ 2,000 $ 2,267 $ 2,267 Q-Q 10% 10% 25% 25% Y-Y -12% -12% 0% 0% Gross profit $ 950 $ 980 $ 1,090 $ 1,135 Gross margin 47.5% 49.0% 48.1% 50.1% Operating expense $(995) $(535) $(1,059) $(550) Other income (expense) $(2) $(1) $1 $1 Operating income (loss) $ (47) $ 444 $ 32 $ 586 Operating margin -2.4% 22.2% 1.4% 25.8% Financial income (expense) $(100) $(98) $(106) $(100) Additional Information: Non-GAAP Gross profit excludes Purchase Price Accounting effects (“PPA”), $(22) million; Stock Based Compensation, $(11) million; Restructuring and Other Incidentals, $(12) million;Non-GAAP Operating income excludes PPA effects, $(441) million; Stock Based Compensation, $(83) million; Merger related costs, $(1) million; Restructuring and Other Incidentals, $(29) million;Non-GAAP Financial Income (expense) excludes Other financial expense $(3) million; Foreign exchange loss $(3) million;Cash paid for income taxes related to on-going operations was $29 million. Items not related to on-going operations resulted in additional cash payments of $10 million;Non-controlling interest is expected to be approximately $(4) million. The preliminary results above are unaudited, are based on management’s initial review of NXP’s operating results for...