Product category:
Microprocessors, Microcontrollers and DSPs
News Release from: NXP Semiconductors
Edited by the Electronicstalk Editorial
Team on 22 December 2006
Former Philips operation grows
semiconductor sales
NXP Semiconductors has announced its results for the first nine months of 2006.
NXP Semiconductors, the newly independent semiconductor company founded by Philips, has announced its results for the first nine months of 2006 Total sales in the nine months ending 28th September 2006 were Eur 3770 million, an increase of 10.6% compared with the same period last year
This article was originally published on Electronicstalk on 23 Oct 2001 at 8.00am (UK)
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Excluding foreign currency effects, sales increased by 9.7%.
Sales growth was particularly strong in the company's Multimarket Semiconductors and Automotive and Identification business units.
Direct and indirect sales to the Philips Group decreased from 8.5 to 6.6% of sales.
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Cost of sales for the reporting period was Eur 2331 million, or 61.8% of sales, compared with 63.1% in the previous year, mainly as a result of higher utilisation, reduced manufacturing costs and yield improvements.
Gross margin was Eur 1439 million which represents 38.2% of total sales for the reporting period, compared with Eur 1257 million, or 36.9% of total sales for the corresponding period in 2005.
As a percentage of total sales, selling expenses increased from 6.7 to 7.3%.
This included restructuring charges of Eur 11 million, which were recognised in the first nine months of 2006, representing relocation and severance costs.
General and administrative expenses were Eur 299 million for the first nine months, compared with Eur 322 million in the corresponding period of 2005.
As a percentage of total sales, these expenses were reduced from 9.4 to 7.9%.
Research and development expenses were Eur 737 million, compared with Eur 754 million last year, a decrease of 2.3% primarily caused by portfolio management, in particular in respect of DVD-R and mobile display drivers.
Other business income was Eur 18 million for the reporting period, mainly reflecting the sale of certain US real estate.
Over the same period last year the amount was Eur 12 million, reflecting the sale of property in Albuquerque, New Mexico and San Antonio, Texas.
Income from operations was Eur 146 million, representing 3.9% of total sales, compared with a loss of Eur 35 million in the same period of 2005.
Restructuring charges for the first nine months were Eur 19 million, compared with Eur 5 million in the corresponding period of 2005.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased from Eur 556 million to Eur 568 million.
Net financial income and expenses decreased to Eur 22 million in the nine months ended 28th September 2006 (30th September 2005: Eur 52 million), mainly due to lower financing by Philips.
The tax expense on income before tax amounted to Eur 75 million in the first nine months of 2006, compared with Eur 20 million in this period in 2005.
Both amounts were determined based on the tax allocation methodology used by Philips.
Results related to unconsolidated entities showed a profit of Eur 3 million for the reporting period, compared with a loss of Eur 7 million for the nine months ended 30th September 2005.
These results mainly relate to investment in Advanced Semiconductor Manufacturing Company (ASMC).
The share of minority interests in the company reduced income by Eur 50 million, compared with Eur 18 million for the first nine months in 2005; this was mainly related to the 49.5% stake held by third parties in Systems on Silicon Manufacturing Company (SSMC).
Net income improved from a net loss of Eur 132 million in the first nine months of 2005 to a profit of Eur 2 million in the reporting period.
"We have made good progress in NXP".
"Our move outside Philips has helped us to accelerate our business".
"Our Income from operations is higher and more predictable, our portfolio is more focused, and we have achieved visible sales growth".
"With the positive effects of business renewal, we are well positioned to achieve our objectives", stated Frans van Houten, NXP President and Chief Executive Officer.
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