AUSTIN, Texas — (BUSINESS WIRE) — January 28, 2010 — Freescale Semiconductor Holdings I, Ltd. today announced financial results for the fourth quarter and fiscal year ended Dec. 31, 2009.
Highlights for the fourth quarter and fiscal year 2009 include:
"Freescale executed well during the fourth quarter and 2009, delivering improving revenue and earnings performance throughout the year," said Rich Beyer, Chairman and CEO. “Our strong financial position, leadership in embedded processing across our core networking and automotive businesses, and significant opportunities in consumer and industrial segments, provide a diversified foundation for growth in 2010 and beyond."
Net sales for the fourth quarter of 2009 were $951 million, compared to $893 million in the third quarter of 2009 and $940 million in the fourth quarter last year.
The reported loss from operations for the three months ended Dec. 31, 2009, inclusive of $148 million of reorganization costs, was $261 million, compared to a loss of $261 million in the third quarter of 2009 and a loss of $4.17 billion in the fourth quarter of 2008.
Adjusted operating earnings (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) for the three months ended Dec. 31, 2009 were $59 million compared to earnings of $12 million in the third quarter of 2009 and a loss of $116 million in the fourth quarter of 2008.
Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA), (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) was $168 million for the fourth quarter of 2009, compared to $119 million in the third quarter of 2009 and $17 million for the fourth quarter of 2008.
Descriptions of adjusted gross margin, EBITDA, Adjusted EBITDA and adjusted operating earnings/loss, cash flow and the reconciliations to our GAAP results are included in the tables and notes attached to this press release.
The company’s net sales figures for the fourth quarter of 2009 are as follows:
Fourth Quarter Business Reorganization
During the fourth quarter, the company recorded $148 million of reorganization costs related primarily to an accrual for severance and other costs associated with our plan to exit our manufacturing facility in Toulouse, France during 2011.
Cash and cash equivalents were $1.36 billion on Dec. 31, 2009 compared to $1.33 billion on October 2, 2009.
Conference Call and Webcast
Freescale's quarterly earnings call is scheduled to begin at 4 p.m. Central Standard Time on Jan. 28, 2010. The company will offer a live webcast of the conference call over the Internet at www.freescale.com/investor.
Caution Regarding Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to our business strategy, goals and expectations
concerning our market position, future operations, margins,
profitability, liquidity and capital resources. Although we believe the
assumptions upon which these forward-looking statements are based are
reasonable, any of these assumptions could prove to be inaccurate and
the forward-looking statements based on these assumptions could be
incorrect. Our operations involve risks and uncertainties, many of which
are outside our control, and any one of which, or a combination of
which, could materially affect our results of operations and whether the
forward-looking statements ultimately prove to be correct. Actual
results and trends in the future may differ materially from those
suggested or implied by the forward-looking statements depending on a
variety of factors. Some of the factors that we believe could affect our
results include our substantial indebtedness; our ability to service our
outstanding indebtedness and the impact such indebtedness may have on
the way we operate our business; the loss of one or more of our
significant customers or strategic relationships; general economic and
business conditions and any downturns in the cyclical industry in which
we operate; our competitive environment and our ability to make
technological advances; interruptions in our production or manufacturing
capacity and our ability to obtain supplies; economic conditions in the
industries in which our products are sold; maintenance and protection of
our intellectual property; political and economic conditions in the
countries where we conduct business; integration of future acquisitions
into our business; the costs of environmental compliance and/or the
imposition of liabilities under environmental laws and regulations;
potential product liability claims; inability to make necessary capital
expenditures; loss of key personnel; the financial viability of our
customers, distributors or suppliers; and our ability to achieve cost
savings as well as other matters described under "Risk Factors" in our
Annual Report on Form 10-K and other filings with the SEC. We undertake
no obligation to update any information contained in this press release.