Freescale Semiconductor Announces Third Quarter 2007 Results

               Freescale Semiconductor Holdings I, Ltd.
Segment EBITDA Excluding the Effects of Purchase Accounting and Other
                                 Items
                            Non-GAAP Basis
                             (Unaudited)

(in millions)                                    Nine Months Ended
                                             -------------------------
                                             September    September
                                                28,          29,
                                               2007         2006
                                             ---------    ---------

Transportation and Standard Products              $540(a)      $601
Networking and Computing Systems                   297(b)       383
Wireless and Mobile Solutions                      128(c)       272
Other                                              (1)(d)      (37)(e)
                                             ---------    ---------
       Segment totals                             $964       $1,219
                                             ---------    ---------

(a) Adjustment reflects add back of $186 million from incremental
 expense related to the recognition of the step-up of inventory to
 fair value at the merger date.

(b) Adjustment reflects add back of $178 million from incremental
 expense related to the recognition of the step-up of inventory to
 fair value at the merger date.

(c) Adjustment reflects add back of $52 million from incremental
 expense related to the recognition of the step-up of inventory to
 fair value at the merger date.

(d) Adjustment reflects add back of $3 million related to transaction
 expenses arising from the merger and $38 million related to
 reorganization expenses.

(e) Adjustment reflects add back of $7 million related to transaction
 expenses arising from the merger.

               Freescale Semiconductor Holdings I, Ltd.
                           Adjusted EBITDA
                             (Unaudited)

Provided below is a reconciliation of net loss
 to EBITDA to Adjusted EBITDA:

                                               ---------- ------------
                                                 Three      Twelve
                                                 months      months
                                                 ended       ended
                                                September  September
(in millions)                                   28, 2007    28, 2007
                                               ---------- ------------

Net (loss)                                         $(261)     $(3,811)
Interest expense, net                                 196          630
Income tax (benefit)                                (135)        (744)
Depreciation and amortization (a)                     553        1,911
                                               ---------- ------------
EBITDA                                                                     353            (2,014)
Non-cash  stock-based  employee  compensation  (1)                  11                    357
Other  non-cash  charges  (2)                                                            -                2,820
Non-recurring/one-time  items  (3)                                                5                    255
Cost  savings  (4)                                                                                6                      54
Other  defined  terms  (5)                                                                21                      98
                                                                                              ----------  ------------
Adjusted  EBITDA                                                                            $396              $1,570
                                                                                              ==========  ============

(a)  Excludes  amortization  of  debt  issuance  costs,  which  are  included
  in  interest  expense,  net.

(1)  Reflects  non-cash  stock-based  employee  compensation  expense  under
  the  provisions  of  SFAS  No.  123(R),  Share-based  Payments.

(2)  Reflects  the  non-cash  charges  related  to  purchase  accounting
  adjustments  for  in-process  research  and  development,  inventory  and
  other  non-cash  items.

(3)  Reflects  costs  associated  with  Predecessor  debt  extinguishment,
  one-time  Merger  expenses  and  our  reorganization  of  business  program.

(4)  Reflects  cost  savings  that  we  expect  to  achieve  from  certain
  initiatives  where  actions  have  begun  or  have  already  been  completed.

(5)  Reflects  other  adjustments  required  in  calculating  our  debt
  covenant  compliance.

Adjusted  earnings  before  cumulative  effect  of  accounting  change,
  interest,  taxes,  depreciation  and  amortization  (EBITDA)  is  a  non-U.S.
  GAAP  measure  used  to  determine  our  compliance  with  certain  covenants
  contained  in  the  Credit  Facilities  and  the  indentures  governing  the
  Senior  Notes  and  Senior  Subordinated  Notes.  Adjusted  EBITDA  is
  defined  as  EBITDA  adjusted  to  add  back  certain  non-cash,  non-
  recurring  and  other  items  that  are  included  in  EBITDA  and/or  net
  income  (loss),  as  required  by  various  covenants  in  the  indentures  and
  the  Credit  Facilities.  We  believe  that  the  presentation  of  Adjusted
  EBITDA  for  the  twelve  months  ended  September  28,  2007  is  appropriate
  to  provide  additional  information  to  investors  to  demonstrate
  compliance  with  our  financing  covenants.  Our  ability  to  engage  in
  activities  such  as  incurring  additional  indebtedness,  making
  investments  and  paying  dividends  is  tied  to  ratios  based  on  Adjusted
  EBITDA.

Adjusted  EBITDA  does  not  represent,  and  should  not  be  considered  an
  alternative  to,  net  income  (loss),  operating  income  (loss),  or  cash
  flow  from  operations  as  those  terms  are  defined  by  U.S.  GAAP  and  does
  not  necessarily  indicate  whether  cash  flows  will  be  sufficient  to
  fund  cash  needs.  While  Adjusted  EBITDA  and  similar  measures  are
  frequently  used  as  measures  of  operations  and  the  ability  to  meet
  debt  service  requirements  by  other  companies,  our  use  of  Adjusted
  EBITDA  is  not  necessarily  comparable  to  such  other  similarly  titled
  captions  of  other  companies.    The  definition  of  Adjusted  EBITDA  in
  the  indentures  and  the  Credit  Facilities  allows  us  to  add  back
  certain  charges  that  are  deducted  in  calculating  EBITDA  and/or  net
  income  (loss).    However,  some  of  these  expenses  may  recur,  vary
  greatly  and  are  difficult  to  predict.    Further,  our  debt  instruments
  required  that  Adjusted  EBITDA  be  calculated  for  the  most  recent  four
  fiscal  quarters.    As  a  result,  the  measure  can  be  disproportionately
  affected  by  a  particularly  strong  or  weak  quarter.    Further,  it  may
  not  be  comparable  to  the  measure  for  any  subsequent  four-quarter
  period  or  any  complete  fiscal  year.
 


« Previous Page 1 | 2 | 3 | 4 | 5 | 6  Next Page »



Review Article Be the first to review this article
CST Webinar Series

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Upcoming Events
2016 IEEE International Electron Devices Meeting at Hilton San Francisco Union Square 333 O’Farrell Street San Francisco CA - Dec 3 - 7, 2016
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy