Product category:
Microprocessors, Microcontrollers and DSPs
News Release from: Freescale Semiconductor
Edited by the Electronicstalk Editorial
Team on 23 January 2006
Freescale continues sales and earnings
increases
Freescale Semiconductor has reported its financial results for the fourth quarter and fiscal year ended 31st December 2005.
Freescale Semiconductor has reported its financial results for the fourth quarter and fiscal year ended 31st December 2005 The results include the reclassification of certain expenses to align the company's results with the adoption of FAS 123 in the first quarter of 2006
This article was originally published on Electronicstalk on 20 Mar 2001 at 8.00am (UK)
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The reclassifications have no impact on reported revenue, net earnings or earnings per share.
Fourth quarter 2005 results include an $8 million reversal of a write-down of receivables the company determined were impaired due to the bankruptcy of the US subsidiaries of the Delphi Corporation originally recorded in the third quarter of 2005.
Net sales in the fourth quarter of 2005 were $1.48 billion, compared with $1.45 billion in the third quarter of 2005 and $1.43 billion in the fourth quarter of 2004.
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For the year, net sales were $5.84 billion compared with $5.72 billion in 2004.
Operating earnings for the fourth quarter of 2005 were $202 million or 13.7% of net sales compared with $152 million for the third quarter of 2005 and operating earnings of $15 million for the fourth quarter of 2004, inclusive of fourth quarter 2004 restructuring charges and separation expenses of $84 million.
Net earnings for the fourth quarter of 2005 were $192 million, or $0.45 per fully diluted share, compared with $164 million or $0.38 per fully diluted share in the third quarter of 2005 and $5 million or $0.01 per fully diluted share in the fourth quarter of 2004.
Cash, cash equivalents, short-term investments and marketable securities included in investments in the fourth quarter of 2005 increased sequentially by $143 million, inclusive of share repurchases of $103 million, and totaled $3.0 billion.
During the fourth quarter of 2005, the company repurchased 4 million shares of its common stock at an average price of $25.49 per share.
Capital expenditures for the fourth quarter were $147 million and were $491 million for 2005.
The results include the reclassification of certain expenses to align the company's results with the adoption of FAS 123 in the first quarter of 2006.
The reclassifications have no impact on reported revenue, net earnings or earnings per share.
The company has reclassified incentive compensation, technology and other related expenses from cost of goods sold and selling, general and administrative (SG and A) to cost of goods sold, research and development (R and D) and SG and A expense.
The approximate line item impact as a percentage of sales from the reclassifications for fiscal 2005 lowers gross margin by 0.4%, increases R and D expense by 2.3%, and lowers SG and A expense by 2.7%.
In addition, the company has reclassified certain consumer product-related revenues from its transportation and standard products segment to the wireless and mobile solutions segment to reflect organisational changes and has revised its manufacturing ownership model.
The reclassifications result in a change to the revenue and operating margin of each segment.
For the first quarter of 2006, the company expects to report revenues of $1.435 to $1.535 billion.
Gross margins for the first quarter of 2006 are expected to be slightly up from the operational level reported in the fourth quarter of 2005, excluding the benefit of the Delphi reversal and the impact of stock option expense related to FAS 123.
During the first quarter of 2006, the company will begin expensing stock options in accordance with FAS 123.
The company expects the expense associated with stock options to be approximately $0.04 per share in the first quarter.
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