NXP Semiconductors Reports Fourth Quarter and Full-Year 2015 Results

  • 2015 revenue up 8 percent year-on-year
  • Continued strong earnings growth
  • Freescale merger complete and synergies on track                                                              
 Q4 2015 FY 2015
Revenue$1,606 million $6,101 million
GAAP Gross margin 38.5%  45.7%
GAAP Operating margin 63.1%  33.0%
GAAP Diluted earnings per share$3.56  $6.10 
    
Non-GAAP Gross margin 50.2%  49.2%
Non-GAAP Operating margin 27.0%  27.6%
Non-GAAP Diluted earnings per share$1.25  $5.60 

EINDHOVEN, The Netherlands, Feb. 03, 2016 (GLOBE NEWSWIRE) --  NXP Semiconductors N.V. (NASDAQ:NXPI) today reported financial results for the fourth quarter and the full-year 2015, ended December 31, 2015, as well as provided guidance for the first quarter of 2016. 

“The end of 2015 brought to a close a year filled with significant accomplishments and a few challenges for NXP.  During the fourth quarter we successfully completed the previously announced merger with Freescale Semiconductor.  NXP is now the clear market leader in automotive, microcontroller and security semiconductor solutions.  Notwithstanding our success, we faced an uncertain macro demand environment during the second-half of 2015.  Despite this, we continued to outperform the overall industry.  Looking forward, our task is to continue to outgrow the market despite the uncertain environment,” said Richard Clemmer, NXP Chief Executive Officer.

On a full-year basis, NXP delivered revenue of $6.1 billion, up 8 percent from 2014, including the benefit of approximately one month of revenue contribution from Freescale.  Revenue from our strategic HPMS segment was $4.72 billion, up 12 percent year-on-year, with nearly all of the operating segments delivering positive growth for the year.  Standard Product segment revenue was $1.24 billion, down 3 percent versus the prior year.  Full-year non-GAAP operating profit and non-GAAP earnings were both up strongly versus 2014.  Non-GAAP operating income was $1.68 billion, up 19 percent versus the prior year, and non-GAAP earnings per share were $5.60, up nearly 18 percent versus 2014, and non-GAAP free cash flow was $996 million. 

Looking at our results for the fourth quarter 2015, revenue was $1.61 billion, up 4 percent year-on-year, and up nearly 6 percent versus the prior quarter.  HPMS segment revenue was $1.31 billion, up 12 percent from the same period a year ago, as well as sequentially.  Standard Product segment revenue was $271 million, down 18 percent from same period a year ago and down 17 percent sequentially.  In spite of weaker revenue trends, non-GAAP diluted earnings per share were $1.25, reflective of better gross margin and solid expense control resulting in improved profit fall-through. Additionally we generated $180 million non-GAAP free cash flow. 

“In summary, we believe NXP is ideally positioned in the right markets, with the right customers and highly competitive portfolio of solutions. I would like to personally thank all of our employees for their tireless efforts in bringing the merger to a successful conclusion. I would further like to thank our customers for the positive inputs and confidence in the vision of the combined company.  We believe the merger will result in significant value creation both in terms of giving us an even more competitive cost structure as well broadening the product portfolio we can offer our customers,” said Clemmer.

Summary of Fourth Quarter and Full-year 2015 Results ($ millions, except diluted EPS, unaudited)

                     
                     
     Q4 2015  Q3 2015  Q4 2014  Q - Q  Y - Y   2015    2014     Y - Y    
                                         
    Product Revenue   $   1,577     $   1,489     $   1,500       5.9 %     5.1 %   $   5,961     $   5,483       8.7 %    
                                                                         
    Corporate & Other   $   29     $   33     $   37       -12.1 %     -21.6 %   $   140     $   164       -14.6 %    
                                                                         
    Total Revenue   $     1,606     $     1,522     $     1,537       5.5 %     4.5 %   $     6,101     $     5,647       8.0 %    
                                         
    GAAP Gross Profit   $     619     $     740     $     704       -16.4 %     -12.1 %   $     2,787     $     2,640       5.6 %    
                                         
    Gross Profit Adjustments (1) $   (187 )   $   (8 )   $   (12 )           $   (212 )   $   (73 )        
                                         
    Non-GAAP Gross Profit $     806     $     748     $     716       7.8 %     12.6 %   $     2,999     $     2,713       10.5 %    
                                         
    GAAP Gross Margin     38.5 %     48.6 %     45.8 %                     45.7 %     46.8 %        
                                         
    Non-GAAP Gross Margin   50.2 %     49.1 %     46.6 %             49.2 %     48.0 %        
                                         
    GAAP Operating Income $     1,013     $     375     $     310       170.1 %     226.8 %   $     2,015     $     1,049       92.1 %    
                                         
    Operating Income Adjustments (1)     580         (74 )       (79 )               330         (365 )        
                                         
    Non-GAAP Operating Income $     433     $     449     $     389       -3.6 %     11.3 %   $     1,685     $     1,414       19.2 %    
                                         
    GAAP Operating Margin   63.1 %     24.6 %     20.2 %                     33.0 %     18.6 %        
                                         
    Non-GAAP Operating Margin   27.0 %     29.5 %     25.3 %             27.6 %     25.0 %        
                                         
    GAAP Net Income / (Loss) $     972     $     361     $     149       169.3 %     552.3 %   $     1,526     $     539       183.1 %    
                                         
    Net Income Adjustments (1)     631         (19 )       (178 )               126         (644 )        
                                         
    Non-GAAP Net Income / (Loss) $     341     $     380     $     327       -10.3 %     4.3 %   $     1,400     $     1,183       18.3 %    
                                         
    GAAP EPS   $     3.56     $     1.49     $     0.61       138.9 %     483.6 %   $     6.10     $     2.17       181.1 %    
    EPS Adjustments (1)   $   2.31     $   (0.08 )   $   (0.74 )           $   0.50     $   (2.59 )        
    Non-GAAP EPS   $     1.25     $     1.57     $     1.35       -20.4 %     -7.4 %   $     5.60     $     4.76       17.6 %    
                                         
                                         

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