NXP Semiconductors N.V. (Nasdaq:NXPI) today reported financial results for the second quarter of 2014, ended June 29, 2014, and provided guidance for the third quarter 2014.
"Our top-line results for the second quarter of 2014 were very good and in-line with the high-end of our guidance, as total NXP revenue in the second quarter was $1,349 million, a 14 percent increase year-on-year, and an 8 percent sequential improvement, a reflection of strong seasonal performance across the entire portfolio," said Richard Clemmer, NXP Chief Executive Officer.
"Revenue performance in the HPMS segment was better than plan, resulting in 13 percent year-on-year growth, and an 8 percent sequential increase. Within Portable & Computing our results were very strong and above the high end of expectations, reflecting a 9 percent improvement versus the first quarter due to strong multi-market growth, while growth versus the same period a year ago was 39 percent due to continued ramps of strategic mobile designs. Our Identification business continued to perform very well delivering an 8 percent improvement from the prior quarter due to solid demand across nearly the entire product portfolio, with year-on-year growth coming in at 1 percent. Within our Industrial & Infrastructure business, revenue performance in the quarter was in-line with our plan, resulting in 15 percent growth sequentially, and up 17 percent from the year ago period, due to ongoing strength in the wireless basestation market as well as the continued adoption of our smart mobile audio products. Our Automotive business delivered positive results, resulting in 4 percent sequential growth due to strong demand for car entertainment and keyless entry solutions, while delivering strong growth versus the year ago period of 14 percent. Lastly, within our Standard Products segment, revenue performance was excellent and above normal seasonality, with revenue up 7 percent versus the first quarter of 2014, and up 12 percent versus the second quarter of 2013.
"During the quarter, non-GAAP diluted earnings per share were $1.09, approaching the high-end of guidance due to the combination of better product revenue, positive product mix and offset by slightly higher operating expenses as we continue to strategically invest to assure long-term growth. Taken together, NXP generated $153 million in free cash flow during the quarter, representing 11 percent free cash flow margin. We repurchased an additional 3.8 million shares during the quarter for a total of $223 million, bringing our year to date repurchases to $681 million, continuing our commitment to return cash to shareholders. In summary, our second quarter performance was stronger than anticipated and our outlook for the third quarter indicates a new high water mark in terms of total revenue and earnings per share," said Clemmer.
Summary of Second Quarter 2014 Results ($ millions, except EPS, unaudited)