Q1 2014
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Revenue $1,246 million
GAAP Gross margin 47.0%
GAAP Operating margin 14.7%
GAAP Diluted earnings per share $0.43
Non-GAAP Gross margin 49.5%
Non-GAAP Operating margin 24.2%
Non-GAAP Diluted earnings per share $0.98
NXP Semiconductors N.V. (
"Our results for the first quarter of 2014 were very good, above the mid-point of our guidance, as NXP delivered Product revenue of $1,207 million, a 14 percent increase from the prior year period and a 4 percent sequential decline. Total NXP revenue in the first quarter was $1,246 million, a 15 percent increase year-on-year, and a 4 percent sequential decline, slightly better than typical seasonal decline," said Richard Clemmer, NXP Chief Executive Officer.
"Our HPMS segment performed better than expected during the first quarter, resulting in 18 percent year-on-year growth, though declining about 5 percent sequentially -- this after a better than seasonally strong fourth quarter. Performance within our Automotive business was better than our initial expectations, resulting in 20 percent year-on-year growth primarily due to better than expected demand for in-vehicle networking solutions. Similarly, within our Identification business, revenue performance was better than planned resulting in 6 percent year-on-year growth due to improved demand for infrastructure and mobile payment products. In our Portable & Computing business, our results were near the high end of expectations, reflecting 45 percent growth versus the prior year. Within our Industrial & Infrastructure business, revenue performance was slightly below plan but still up 19 percent year-on-year. Within our Standard products segment, revenue performance was incrementally better than originally planned.
"During the quarter, non-GAAP, diluted earnings per share were $0.98, above the mid-point of guidance due to the combination of better product revenue; positive product mix; and offset by slightly higher operating expenses. Taken together, NXP generated $223 million in free cash flow during the quarter, representing 18 percent non-GAAP free cash flow margin. Additionally, we repurchased 8.3 million shares during the quarter, executing on our commitment to aggressively and opportunistically return cash to shareholders via our share repurchase program. In summary the first quarter results were better than anticipated, and we believe NXP is ideally positioned to continue to deliver solid revenue growth, strong earnings and robust free cash flow in future periods," said Clemmer.
Summary of First Quarter 2014 Results ($ millions, except EPS, unaudited)
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Q1 2014 Q4 2013 Q1 2013 Q - Q Y - Y
------- ------- ------- ------ ------
Product Revenue $ 1,207 $ 1,251 $ 1,055 -4% 14%
Corporate & Other $ 39 $ 42 $ 30 -7% 30%
------- ------- -------
Total Revenue $ 1,246 $ 1,293 $ 1,085 -4% 15%
GAAP Gross Profit $ 585 $ 589 $ 483 -1% 21%
Gross Profit Adjustments (1) $ (32) $ (47) $ (54)
Non-GAAP Gross Profit $ 617 $ 636 $ 537 -3% 15%
GAAP Gross Margin 47% 46% 45%
Non-GAAP Gross Margin 50% 49% 50%
GAAP Operating Income $ 183 $ 198 $ 115 -8% 59%
Operating Income Adjustments
(1) (118) (126) (140)
Non-GAAP Operating Income $ 301 $ 324 $ 255 -7% 18%
GAAP Operating Margin 15% 15% 11%
Non-GAAP Operating Margin 24% 25% 24%
GAAP Net Income / (Loss) $ 110 $ 96 $ (14) 15% NM
Net Income Adjustments (1) (139) (157) (200)
Non-GAAP Net Income / (Loss) $ 249 $ 253 $ 186 -2% 34%
GAAP EPS $ 0.43 $ 0.37 $ (0.06) 16% NM
EPS Adjustments (1) $ (0.55) $ (0.62) $ (0.78)
Non-GAAP EPS $ 0.98 $ 0.99 $ 0.72 -1% 36%
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1. Please see "Discussion of GAAP to non-GAAP Reconciliation" following in
this release.
Supplemental Information ($ millions, unaudited)
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Q1 Q4 Q1 Percent
2014 2013 2013 Q1 Total Q - Q Y - Y
------ ------ ------ -------- ----- -----
Automotive $ 276 $ 275 $ 230 22% 0% 20%
Identification $ 319 $ 329 $ 300 26% -3% 6%
Infrastructure & Industrial $ 182 $ 194 $ 153 15% -6% 19%
Portable & Computing $ 135 $ 159 $ 93 11% -15% 45%
------ ------ ------ --------
High Performance Mixed Signal
(HPMS) $ 912 $ 957 $ 776 73% -5% 18%
Standard Products (STDP) $ 295 $ 294 $ 279 24% 0% 6%
------ ------ ------ --------
Product Revenue $1,207 $1,251 $1,055 97% -4% 14%
Corporate & Other $ 39 $ 42 $ 30 3% -7% 30%
------ ------ ------ --------
Total Revenue $1,246 $1,293 $1,085 100% -4% 15%
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Product Revenue is the combination of revenue from the High Performance
Mixed Signal (HPMS) and Standard Products (STDP) segments. Percent of
quarterly total amounts may not add to 100 percent due to rounding.
