/ CORRECTION - NXP Semiconductors

/ CORRECTION - NXP Semiconductors 
NEW YORK, NY -- (Marketwire) -- 10/25/12 --  In the news release,
"NXP Semiconductors Reports Third Quarter 2012 Results" issued
Wednesday, October 24, 2012 by NXP Semiconductors N.V. (NASDAQ:
NXPI), we are advised by the company that the figure in the quote
from Richard Clemmer, NXP Chief Executive Officer, should be $1,114
million rather than $1,114 billion as originally issued. Complete
corrected text follows. 
NXP Semiconductors Reports Third Quarter 2012 Results  
NEW YORK, NY - October 24, 2012 - 


 
                                                                
                                                   Q3 2012      
                                            --------------------
            Revenue                            $1,170 million   
            GAAP Gross margin                       45.8%       
            GAAP Operating margin                   14.4%       
            GAAP Diluted earnings per share         $0.45       
                                                                
            Non-GAAP Gross margin                   46.3%       
            Non-GAAP Operating margin               19.8%       
            Non-GAAP Earnings per share             $0.56       

 
--  Trailing twelve month adjusted EBITDA $989 million
--  Net debt reduced $76 million year-on-year to $2,880 million
--  Product revenue growth of 9 percent sequentially

  
NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results
for the third quarter of 2012, ended September 30, 2012, and provided
guidance for the fourth quarter 2012.  
"We are pleased with our performance during the third quarter of 2012
as we delivered Product revenue of $1,114 million, a nine percent
sequential increase, and nearly a fifteen percent increase from the
comparable year ago period. Total NXP revenue was $1,170 million, a
seven percent sequential increase, and a ten percent increase from
the comparable year ago period. Our growth in the quarter was in-line
with the mid-point of our tightened guidance range, a direct
reflection of the company specific design opportunities we have
previously highlighted. Although, over the intermediate term we
believe the continued uncertainty of the macro environment may limit
growth in the mo
re cyclically exposed portions of our business. We
remain committed to improving our cost and expense structure, which
should result in improved free cash flow. Our strategy continues to
be focused on providing unique and differentiated product solutions
to enable our customers success, which over the longer-term should
allow NXP to outpace the cyclical growth of the overall semiconductor
market," said Richard Clemmer, NXP Chief Executive Officer. 
Third Quarter 2012 Results ($ millions, except EPS, unaudited) 


 
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                                            
                              Q3 2012   Q2 2012   Q3 2011   Q - Q    Y - Y  
                             --------  --------  --------  -------  ------- 
                                                                            
Product Revenue              $  1,114  $  1,022  $    970      9.0%    14.8%
                                                                            
Mfg. & Other Revenue         $     56  $     72  $     90    -22.2%   -37.8%
                             --------  --------  --------                   
                                                                            
Total Revenue                $  1,170  $  1,094  $  1,060      6.9%    10.4%
                                                                            
GAAP Gross Profit            $    536  $    538  $    488     -0.4%     9.8%
                                                                            
  Gross Profit Adjustments                                                  
   (1)                       $     (6) $     33  $    (24)                  
                                                                            
Non-GAAP Gross Profit        $    542  $    505  $    512      7.3%     5.9%
                                                                            
  GAAP Gross Margin              45.8%     49.2%     46.0%                  
                                                                            
  Non-GAAP Gross Margin          46.3%     46.2%     48.3%                  
                                                                            
GAAP Operating Income        $    168  $    156  $    109      7.7%    54.1%
                                                                            
  Operating Income                                                          
   Adjustments (1)           $    (64) $    (48) $   (101)                  
                                                                            
Non-GAAP Operating Income    $    232  $    204  $    210     13.7%    10.5%
                                                                            
  GAAP Operating Margin          14.4%     14.3%     10.3%                  
                                                                            
  Non-GAAP Operating Margin      19.8%     18.6%     19.8%                  
                                                                            
GAAP Net Income / (Loss)     $    115  $    (90) $    301       NM    -61.8%
                                                                            
  Net Income Adjustments (1) $    (27) $   (203) $    175                   
                                                                            
Non-GAAP Net Income / (Loss) $    142  $    113  $    126     25.7%    12.7%
                                                                            
GAAP EPS                     $   0.45  $  (0.36) $   1.21       NM    -62.8%
  EPS Adjustments (1)        $  (0.11) $  (0.81) $   0.71                   
Non-GAAP EPS                 $   0.56  $   0.45  $   0.50     24.4%    12.0%
                                                                            
----------------------------------------------------------------------------

 
(1) Please see "Discussion of GAAP to non-GAAP Reconciliation" on page
3 of this release.  
Supplemental Information ($ millions, unaudited)  


 
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                                            
                         Q3 2012  Q2 2012  Q3 2011 Q3 % Total  Q - Q  Y - Y 
                        -------- -------- -------- ----------  -----  ----- 
                                                                            
  Automotive            $    239 $    244 $    223         20%    -2%     7%
                                                                            
  Identification        $    275 $    234 $    160         24%    18%    72%
                                                                            
  Infrastructure &                                                          
   Industrial           $    165 $    146 $    173         14%    13%    
-5%
                                                                            
  Portable & Computing  $    222 $    179 $    170         19%    24%    31%
                        -------- -------- -------- ----------  -----  ----- 
                                                                            
High Performance Mixed                                                      
 Signal (HPMS)          $    901 $    803 $    726         77%    12%    24%
                                                                            
Standard Products                                                           
 (STDP)                 $    213 $    219 $    244         18%    -3%   -13%
                        -------- -------- -------- ----------  -----  ----- 
                                                                            
Product Revenue         $  1,114 $  1,022 $    970         95%     9%    15%
                                                                            
Manufacturing & Other   $     56 $     72 $     90          5%   -22%   -38%
                        -------- -------- -------- ----------  -----  ----- 
                                                                            
Total Revenue           $  1,170 $  1,094 $  1,060        100%     7%    10%
                                                                            
----------------------------------------------------------------------------

 
Product Revenue is the combination of revenue from the High
Performance Mixed Signal (HPMS) and Standard Products (STDP)
segments.  
Additional Information for the Third Quarter of 2012: 


 
--  Events subsequent to the end of the third quarter 2012:
    --  On October 8, 2012, NXP completed the redemption of $202 million
        of its 2013 Super Priority Notes, as previously announced in a
        press release dated September 7, 2012.
    --  On October 24, 2012, 2012, NXP has agreed with certain
        participating banks to extend the Secured Revolving Credit
        Agreement (the "RCA") entered into on April 27, 2012. The RCA is
        extended with approximately $155 million up to a total amount of
        approximately $805 million. The RCA will expire on March 1, 2017
        and will be used for general corporate purposes.
--  The total debt balance at the end of the third quarter 2012 was $3,582
    million, a reduction of $237 million from the $3,819 million in the
    prior quarter.
--  Net cash interest paid in the third quarter of 2012 was $92 million.
--  SSMC, NXP's consolidated joint-venture wafer fab with TSMC, reported
    third quarter 2012 operating income of $41 million, EBITDA of $53
    million and a closing cash balance of $238 million.
--  Utilization in NXP wafer fabs averaged 91 percent in the third quarter
    2012 compared to 79 percent in the year ago period and 92 percent in
    the prior quarter.

  
Guidance for the Fourth Quarter 2012: ($ millions, except share count
and EPS) (1) 


 
                                                                  
------------------------------------------------------------------
                                                                  
                                           Guidance Range         
                                     Low        Mid        High   
                                  ---------  ---------  --------- 
                                                                  
Product Revenue                   $   1,014  $   1,048  $   1,081 
                                                                  
  Q-Q                                    -9%        -6%        -3%
                                                                  
Mfg. & Other Revenue              $      45  $      45  $      45 
                                  ---------  ---------  --------- 
                                                                  
Total Revenue                     $   1,059  $   1,093  $   1,126 
                                                                  
  Q-Q                                    -9%        -7%        -4%
                                                                  
Non-GAAP Gross Profit             $     491  $     507  $     524 
                                                                  
  Non-GAAP Gross Margin                46.4%      46.4%      46.5%
                                                                  
Non-GAAP Operating Income         $     187  $     201  $     216 
                                                                  
  Non-GAAP Operating Margin            17.7%      18.4%      19.2%
                                                                  
  Interest Expense                $      53  $      53  $      53 
                                                                  
  Cash Taxes                      $      11  $      11  $      11 
                                                                  
  Non-controlling Interest        $      17  $      17  $      17 
                                  ---------  ---------  --------- 
                                                                  
Non-GAAP Net Income               $     106  $     120  $     135 
                                                                  
Ave. Diluted Shares                     253        253        253 
                                                                  
  Non - GAAP EPS                  $    0.41  $    0.47  $    0.53 
                                                                  
------------------------------------------------------------------

 
Note (1): NXP has based the guidance included in this release on
judgments and estimates that management believes are reasonable given
its assessment of historical trends and other information reasonably
available as of the date of this release. The guidance included in
this release consists of predictions only, and is subject to a wide
range of known and unknown risks and uncertainties, many of which are
beyond NXP's control. The guidance included in this release should
not be regarded as representations by NXP that the estimated results
will be achieved. Actual results may vary materially from the
guidance we provide today. In relation to the use of non-GAAP
financial information see the note regarding "Use of Non-GAAP
Financial Information" elsewhere in this release. For the factors,
risks and uncertainties to which judgments, estimates and
forward-looking statements generally are subject see the note
regarding "Forward-looking Statements." We undertake no obligation to
publicly update or revise any forward-looking statements, including
the guidance set forth herein, to reflect future events or
circumstances. Considering the uncertain magnitude and variability of
the foreign exchange consequences upon "PPA effects," "restructuring
costs," "other incidental items" and any interest expense or taxes in
future periods, management believes that GAAP financial measures are
not available for NXP on a forward looking basis. 
Discussion of GAAP to non-GAAP Reconciliations
 In addition to
providing financial information on a basis consistent with U.S.
generally accepted accounting principles ("GAAP")
, NXP also provides
the following selected financial measures on a non-GAAP basis: (i)
"non-GAAP gross profit," (ii) "non-GAAP gross margin," (iii)
"non-GAAP Research and development," (iv) "non-GAAP Selling, general
and administrative," (v) non-GAAP Other income," (vi) "non-GAAP
operating income (loss)," (vii) "non-GAAP operating margin," (viii)
"non-GAAP net income/ (loss)," (ix) "PPA effects," (x) "Restructuring
costs," (xi) "Other incidental items," (xii) "non-GAAP Financial
Income (expense)," (xiii) "non-GAAP Results relating to
equity-accounted investees," (xiv) "non-GAAP Cash tax (expense),"
(xv) "non-GAAP EPS," (xvi) "EBITDA," "adjusted EBITDA" and "trailing
12 month adjusted EBITDA" and (xvii) "net debt."  
In this release, references to: 


 
--  "non-GAAP gross profit," "non-GAAP research and development,"
    "non-GAAP Selling, general and administrative," "non-GAAP Other
    income," "non-GAAP operating income (loss)" and "non-GAAP net income/
    (loss)" are to NXP's gross profit, research and development, selling
    general and administrative, operating income and net income/ (loss)
    calculated on a basis consistent with GAAP, net of the effects of
    purchase price accounting ("PPA"), restructuring costs and certain
    other incidental items. "PPA effects" reflect the fair value
    adjustments impacting acquisition accounting and other acquisition
    adjustments charged to the income statement applied to the formation
    of NXP on September 29, 2006 and all subsequent acquisitions.
    "Restructuring costs" consist of costs related to restructuring
    programs and gains and losses resulting from divestment activities and
    impairment charges. "Other incidental items" consist of process and
    product transfer costs (which refer to the costs incurred in
    transferring a production process and products from one manufacturing
    site to another) and certain charges related to acquisitions and
    divestitures. "Other adjustments" include or exclude certain items
    that management believes provides insight into our core operating
    results, our ability to generate cash and underlying business trends
    affecting our performance.
    
    
--  "non-GAAP gross margin" and "non-GAAP operating margin" are to our
    non-GAAP gross profit or our non-GAAP operating income as a percentage
    of our sales, respectively;
    
    
--  "non-GAAP Financial Income (expense)" is the interest income or
    expense net of impacts due foreign exchange changes on our
    Euro-denominated debt, gains or losses due to the extinguishment of
    long-term debt and less other financial expenses deemed to be one-time
    in nature;
    
    
--  "non-GAAP Cash tax (expense)" is the difference between our GAAP tax
    provision and the cash taxes paid during the period;
    
    
--  "non-GAAP EPS" attributable to stockholders are to non-GAAP net income
    or loss attributable to NXP's stockholders, divided by the weighted
    average number of common shares outstanding during the period,
    adjusted for treasury shares held;
    
    
--  "EBITDA" are to NXP's earnings before interest, taxes, depreciation
    and amortization. "EBITDA" excludes certain tax payments that may
    represent a reduction in cash available to us, does not reflect any
    cash capital expenditure requirements for the assets being depreciated
    and amortized that may have to be replaced in the future, does not
    reflect changes in, or cash requirements for, our working capital
    needs and does not reflect the significant financial expense, or the
    cash requirements necessary to service interest payments, on our
    debts;
    
    
--  "adjusted EBITDA" are to EBITDA after adjustments for "restructuring
    costs," "other incidental items" and results related to equity
    accounted investees.
    
    
--  "trailing 12 month adjusted EBITDA" are to adjusted EBITDA for the
    last 12 months from the date of this release; and
    
    
--  "net debt" is to the sum total of long and short term debt less total
    cash and cash equivalents, as reflected on the balance sheet.

  
Reconciliations of these non-GAAP measures to the most comparable
measures calculated in accordance with GAAP are provided in the
financial statements portion of this release in a schedule entitled
"Financial Reconciliation of GAAP to non-GAAP Results (unaudited)." 
NXP provides non-GAAP measures because management believes that they
are helpful to understand the underlying operating and profit
structure of NXP's operations, to provide additional insight as to
how management assesses the performance and allocation of resources
among its various segments and because the financial community uses
them in its analysis of NXP's operating and/or financial performance,
historical results and projections of NXP's future operating results.
NXP presents "non-GAAP gross profit," "non-GAAP research and
development," "non-GAAP Selling, general and administrative,"
"non-GAAP Other income," "non-GAAP operating income," "non-GAAP net
income/ (loss)," "non-GAAP gross margin," "non-GAAP operating margin"
and "non-GAAP EPS" because these financials measures are net of "PPA
effects," "restructuring costs," "other incidental items," and "other
adjustments" which have affected the comparability of NXP's results
over the years. NXP presents "EBITDA," "adjusted EBITDA" and
"trailing 12 month adjusted EBITDA" because these financials measures
enhance an investor's understanding of NXP's financial performance.  
Non-GAAP measures should not be considered a substitute for any
information derived or calculated in accordance with GAAP, are not
intended to be measures of financial performance or condition,
liquidity, profitability or operating cash flows in accordance with
GAAP, and should not be considered as alternatives to net income
(loss), operating income or any other performance measures determined
in accordance with GAAP. These non-GAAP measures can vary from other
participants in the semiconductor industry. They have limitations as
analytical tools and should not be considered in isolation for
analysis of NXP's financial results as reported under GAAP. 
Conference Call and Webcast Information
 NXP will host a conference
call on October 25, 2012 at 8:00 a.m. U.S. Eastern Daylight Time
(2:00 p.m. Central European Time) to discuss its third quarter 2012
results and provide an outlook for the fourth quarter of 2012.  
Interested parties may join the conference call by dialing 1 - 800 -
591 - 6930 (within the U.S.) or 1 - 617 - 614 - 4908 (outside the
U.S.). The participant pass-code is 28306458. To listen to a webcast
of the event, please visit the Investor Relations section of the NXP
website at www.nxp.com/investor. The webcast will be recorded and
available for replay shortly after the call concludes.  
About NXP Semiconductors
 NXP Semiconductors N.V. (NASDAQ: NXPI)
provides High Performance Mixed Signal and Standard Product solutions
that leverage its leading RF, Analog, Power Management, Interface,
Security and Digital Processing expertise. These innovations are used
in a wide range of automotive, identification, wireless
infrastructure, lighting, industrial, mobile, consumer and computing
applications. A global semiconductor company with operations in more
than 25 countries, NXP posted revenue of $4.2 billion in 2011.
Additional information can be found by visiting www.nxp.com. 
Forward-looking Statements
 This document includes forward-looking
statements which include statements regarding NXP's business
strategy, financial condition, results of operations, and market
data, as well as any other statements which are not historical facts.
By their nature, forward-looking statements are subject to numerous
factors, risks and uncertainties that could cause actual outcomes and
results to be materially different from those projected. These
factors, risks and uncertainties include the following: market demand
and semiconductor 
industry conditions; the ability to successfully
introduce new technologies and products; the end-market demand for
the goods into which NPX's products are incorporated; the ability to
generate sufficient cash, raise sufficient capital or refinance
corporate debt at or before maturity; the ability to meet the
combination of corporate debt service, research and development and
capital investment requirements; the ability to accurately estimate
demand and match manufacturing production capacity accordingly or
obtain supplies from third-party producers; the access to production
capacity from third-party outsourcing partners; any events that might
affect third-party business partners or NXP's relationship with them;
the ability to secure adequate and timely supply of equipment and
materials from suppliers; the ability to avoid operational problems
and product defects and, if such issues were to arise, to correct
them quickly; the ability to form strategic partnerships and joint
ventures and to successfully cooperate with alliance partners; the
ability to win competitive bid selection processes to develop
products for use in customers' equipment and products; the ability to
successfully establish a brand identity; the ability to successfully
hire and retain key management and senior product architects; and,
the ability to maintain good relationships with our suppliers. In
addition, this document contains information concerning the
semiconductor industry and NXP's business segments generally, which
is forward-looking in nature and is based on a variety of assumptions
regarding the ways in which the semiconductor industry, NXP's market
segments and product areas may develop. NXP has based these
assumptions on information currently available, if any one or more of
these assumptions turn out to be incorrect, actual market results may
differ from those predicted. While NXP does not know what impact any
such differences may have on its business, if there are such
differences, its future results of operations and its financial
condition could be materially adversely affected. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak to results only as of the date the statements
were made. Except for any ongoing obligation to disclose material
information as required by the United States federal securities laws,
NXP does not have any intention or obligation to publicly update or
revise any forward-looking statements after we distribute this
document, whether to reflect any future events or circumstances or
otherwise. For a discussion of potential risks and uncertainties,
please refer to the risk factors listed in our SEC filings. Copies of
our SEC filings are available on our Investor Relations website,
www.nxp.com/investor or from the SEC website, www.sec.gov. 


 
                                                                            
NXP Semiconductors                                                          
Table 1: Condensed consolidated statement of operation (unaudited)          
                                                                            
--------------------------------------------------------------------------- 
                                                                            
($ in millions except share data)                  Three Months Ended       
                                            ------------------------------- 
                                              Oct 2,    July 1,    Sept 30, 
                                               2011       2012       2012   
                                            ---------  ---------  --------- 
                                                                            
Revenue                                     $   1,060  $   1,094  $   1,170 
                                                                            
Cost of revenue                                  (572)      (556)      (634)
                                            ---------  ---------  --------- 
                                                                            
Gross profit                                      488        538        536 
                                                                            
Research and development                         (165)      (156)      (153)
Selling, general and administrative              (219)      (231)      (236)
                                            ---------  ---------  --------- 
Total operating expenses                         (384)      (387)      (389)
                                                                            
Other income (expense)                              5          5         21 
                                            ---------  ---------  --------- 
                                                                            
Operating income (loss)                           109        156        168 
                                                                            
Financial income (expense):                                                 
  Interest income (expense) - net                 (73)       (70)       (65)
  Foreign exchange gain (loss)                    (82)      (104)        48 
  Gain (loss) on extinguishment of long                                     
   term debt                                      (11)         -        (11)
  Other financial expense                          (8)        (4)        (5)
                                            ---------  ---------  --------- 
                                                                            
Income (loss) before taxes                        (65)       (22)       135 
                                                                            
Benefit (provision) for income taxes              (20)        (7)        (6)
Results relating to equity-accounted                                        
 investees                                        (25)       (45)         2 
                                            ---------  ---------  --------- 
                                                                            
Income (loss) from continuing operations         (110)       (74)       131 
Income (loss) on discontinued operations,                                   
 net of tax                                       421          -          - 
                                            ---------  ---------  --------- 
Net income (loss)                                 311        (74)       131 
Net (income) loss attributable to non-                                      
 controlling interests                            (10)       (16)       (16)
                                            ---------  ---------  --------- 
Net income (loss) attributable to                                           
 stockholders                                     301        (90)       115 
                                                                            
Earnings per share data:                                                    
Net income (loss) attributable to                                           
 stockholders per common share                                              
                                                                            
Basic earnings per common share in $                                        
  Income (loss) from continuing operations  $   (0.48) $   (0.36) $    0.46 
  Income (loss) from discontinued                                           
   operations                               $    1.69  $       -  $       - 
                                            ---------  ---------  --------- 
Net income (loss)                           $    1.21  $   (0.36) $    0.46 
                                                                            
Diluted earnings per common share in $                                      
  Income (loss) from continuing operations  $   (0.48) $   (0.36) $    0.45
 
  Income (loss) on discontinued operations  $    1.69  $       -  $       - 
                                            ---------  ---------  --------- 
Net income (loss)                           $    1.21  $   (0.36) $    0.45 
                                                                            
Weighted average number of shares of common                                 
 stock (in thousands):                                                      
Basic                                         248,318    248,272    247,498 
Diluted                                       248,318    248,272    253,060 

 
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 2: Condensed consolidated balance sheet (unaudited)                   
                                                                            
----------------------------------------------------------------------------
                                                                            
($ in millions)                                      Three Months Ended     
                                               -----------------------------
                                                 Oct 2,   July 1,   Sept 30,
                                                  2011      2012      2012  
                                               --------- --------- ---------
                                                                            
Current assets:                                                             
  Cash and cash equivalents                    $     865 $     837 $     702
  Accounts receivable - net                          413       451       470
  Other receivables                                   33        16        15
  Assets held for sale                                45        17         8
  Inventories                                        610       644       671
  Other current assets                               111        96       105
                                               --------- --------- ---------
Total current assets                               2,077     2,061     1,971
                                                                            
Non-current assets:                                                         
  Investments in equity-accounted investees           71        39        42
  Other non-current assets                           169       145       144
  Property, plant and equipment                    1,107     1,044     1,086
  Identified intangible assets                     1,274     1,061     1,017
  Goodwill                                         2,316     2,186     2,241
                                               --------- --------- ---------
Total non-current assets                           4,937     4,475     4,530
                                                                            
Total assets                                       7,014     6,536     6,501
                                                                            
Current liabilities:                                                        
  Accounts payable                                   532       524       549
  Liabilities held for sale                           21         5         3
  Accrued liabilities                                628       524       513
  Short-term debt                                     49        52       244
                                               --------- --------- ---------
Total current liabilities                          1,230     1,105     1,309
                                                                            
Non-current liabilities:                                                    
  Long-term debt                                   3,772     3,767     3,338
  Other non-current liabilities                      452       447       450
                                               --------- --------- ---------
Total non-current liabilities                      4,224     4,214     3,788
                                                                            
Non-controlling interests                            203       201       217
Stockholders' equity                               1,357     1,016     1,187
                                               --------- --------- ---------
Total equity                                       1,560     1,217     1,404
                                                                            
Total liabilities and equity                       7,014     6,536     6,501
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 3: Condensed consolidated statement of cash flow (unaudited)          
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)                                    Three Months Ended       
                                            ------------------------------- 
                                              Oct 2,    July 1,    Sept 30, 
                                               2011       2012       2012   
                                            ---------  ---------  --------- 
                                                                            
Cash Flows from operating activities                                        
Net income (loss)                           $     311  $     (74) $     131 
(Income) loss from discontinued operations,                                 
 net of tax                                      (421)         -          - 
Adjustments to reconcile net income (loss):                                 
  Depreciation and amortization                   152        139        128 
  Stock-based compensation                          3         15         12 
  Net (gain) loss on sale of assets                (1)         -        (19)
  (Gain) loss on extinguishment of debt            11          -         11 
  Results relating to equity accounted                                      
   investees                                       25         45         (2)
Changes in operating assets and                                             
 liabilities:                                                               
  (Increase) decrease in trade receivables        (15)       (57)        (8)
  (Increase) decrease in inventories              (50)       (12)       (20)
  Increase (decrease) in trade payables           (15)        71         19 
  (Increase) decrease in other receivables          9         18          3 
  Increase (decrease) in other payables            39         18        (22)
  Changes in deferred taxes                        (3)        (5)         - 
Exchange differences                               82        104        (48)
Other items                                         4          7          7 
                                            ---------  ---------  --------- 
Net cash provided by (used for) operating                                   
 activities                                       131        269        192 
                                                                            
Cash flows from investing activities:                                       
  Purchase of identified intangible assets         (1)        (7)        (7)
  Capital expenditures on property, plant                                   
   and equipment                                  (45)       (74)
       (92)
  Proceeds from disposals of property,                                      
   plant and equipment                              1          1          - 
  Proceeds from the sale of other non-                                      
   current financial assets                         1          -          1 
  Purchase of interests in businesses               -         (2)         - 
  Proceeds from sale of interests in                                        
   businesses                                       -          -         27 
                                            ---------  ---------  --------- 
Net cash (used for) provided by investing                                   
 activities                                       (44)       (82)       (71)
                                                                            
Cash flows from financing activities:                                       
  Net (repayments) borrowings of short-term                                 
   debt                                             6          1          4 
  Repayments under the revolving credit                                     
   facility                                      (600)      (330)      (200)
  Amounts drawn under the revolving credit                                  
   facility                                         -        330          - 
  Repurchase of long-term debt                   (230)         -        (59)
  Principal payments on long-term debt             (2)        (5)        (5)
  Net proceeds from the issuance of long-                                   
   term debt                                        -          1          - 
  Dividends paid to non-controlling                                         
   interests                                        -        (39)        (1)
  Cash proceeds from exercise of stock                                      
   options                                          -          -          6 
  Purchase of treasury shares                     (57)       (37)        (3)
                                            ---------  ---------  --------- 
Net cash provided by (used for) financing                                   
 activities                                      (883)       (79)      (258)
                                                                            
Net cash provided by (used for) continuing                                  
 operations                                      (796)       108       (137)
                                                                            
Cash flows from discontinued operations:                                    
  Net cash provided by (used for) operating                                 
   activities                                       -          -          - 
  Net cash provided by (used for) investing                                 
   activities                                     842        (45)         - 
  Net cash provided by (used for) financing                                 
   activities                                       -          -          - 
                                            ---------  ---------  --------- 
Net cash provided by (used for)                                             
 discontinued operations                          842        (45)         - 
                                                                            
Net cash from continuing and discontinued                                   
 operations                                        46         63       (137)
Effect of changes in exchange rates on cash                                 
 positions                                        (48)        (8)         2 
                                            ---------  ---------  --------- 
Increase (decrease) in cash and cash                                        
 equivalents                                       (2)        55       (135)
Cash and cash equivalents at beginning of                                   
 period                                           867        782        837 
                                            ---------  ---------  --------- 
Cash and cash equivalents at end of period        865        837        702 
Less: cash and cash equivalents at end of                                   
 period-discontinued operations                     -          -          - 
                                            ---------  ---------  --------- 
Cash and cash equivalents at end of period-                                 
 continuing operations                            865        837        702 
                                                                            
NXP Semiconductors                                                          
Table 4: Reconcilliation of GAAP to non-GAAP Segment Results (unaudited)    
                                                                            
--------------------------------------------------------------------------- 
                                                                            
($ in millions)                                    Three Months Ended       
                                            ------------------------------- 
                                              Oct 2,    July 1,    Sept 30, 
                                               2011       2012       2012   
                                            ---------  ---------  --------- 
                                                                            
High Performance Mixed Signal (HPMS)              726        803        901 
Standard Products                                 244        219        213 
                                            ---------  ---------  --------- 
  Product Revenue                                 970      1,022      1,114 
    Manufacturing Operations                       79         62         49 
    Corporate and Other                            11         10          7 
                                            ---------  ---------  --------- 
Total Revenue                               $   1,060  $   1,094  $   1,170 
                                            =========  =========  ========= 
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
HPMS Revenue                                $     726  $     803  $     901 
  Percent of Total Revenue                       68.5%      73.4%      77.0%
  HPMS segment GAAP gross profit                  397        465        463 
    PPA effects                                   (13)        (7)        (1)
    Restructuring                                   -          -          - 
    Other incidentals                               -         (2)        (1)
    Other adjustments                               -         46          - 
                                            ---------  ---------  --------- 
  HPMS segment non-GAAP gross profit        $     410  $     428  $     465 
                                            =========  =========  ========= 
                                                                            
    HPMS segment GAAP gross margin               54.7%      57.9%      51.4%
    HPMS segment non-GAAP gross margin           56.5%      53.3%      51.6%
                                                                            
  HPMS segment GAAP operating profit               86        159        178 
    PPA effects                                   (63)       (54)       (47)
    Restructuring                                  (1)         1          1 
    Other incidentals                               1        (10)        16 
    Other adjustments                                         46   
       - 
                                            ---------  ---------  --------- 
  HPMS segment non-GAAP operating profit    $     149  $     176  $     208 
                                            =========  =========  ========= 
                                                                            
    HPMS segment GAAP operating margin           11.8%      19.8%      19.8%
    HPMS segment non-GAAP operating margin       20.5%      21.9%      23.1%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
Standard Products Revenue                   $     244  $     219  $     213 
  Percent of Total Revenue                       23.0%      20.0%      18.2%
  Standard Products segment GAAP gross                                      
   profit                                          90         66         73 
    PPA effects                                     -          -         (1)
    Restructuring                                   -         (1)         1 
    Other incidentals                               -          -          - 
                                            ---------  ---------  --------- 
  Standard Products segment non-GAAP gross                                  
   profit                                   $      90  $      67  $      73 
                                            =========  =========  ========= 
                                                                            
  Standard Products segment GAAP gross                                      
   margin                                        36.9%      30.1%      34.3%
  Standard Products segment non-GAAP gross                                  
   margin                                        36.9%      30.6%      34.3%
                                                                            
  Standard Products segment GAAP operating                                  
   profit                                          42         18         22 
    PPA effects                                   (14)       (13)       (13)
    Restructuring                                   -          -          - 
    Other incidentals                               1         (1)         2 
                                            ---------  ---------  --------- 
  Standard Products segment non-GAAP                                        
   operating profit                         $      55  $      32  $      33 
                                            =========  =========  ========= 
                                                                            
    Standard Products segment GAAP                                          
     operating margin                            17.2%       8.2%      10.3%
    Standard Products segment non-GAAP                                      
     operating margin                            22.5%      14.6%      15.5%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 4: Reconcilliation of GAAP to non-GAAP Segment Results (unaudited)    
 (con't)                                                                    
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)                                    Three Months Ended       
                                            ------------------------------- 
                                              Oct 2,    July 1,    Sept 30, 
                                               2011       2012       2012   
                                            ---------  ---------  --------- 
Manufacturing Operations Revenue            $      79  $      62  $      49 
  Percent of Total Revenue                        7.5%       5.7%       4.2%
  Manufacturing Operations segment GAAP                                     
   gross profit                                   (12)        (3)        (2)
    PPA effects                                    (2)        (2)        (2)
    Restructuring                                  (4)         -         (1)
    Other incidentals                              (5)        (1)        (1)
                                            ---------  ---------  --------- 
  Manufacturing Operations segment non-GAAP                                 
   gross profit                             $      (1) $       -  $       2 
                                            =========  =========  ========= 
                                                                            
    Manufacturing Operations segment GAAP                                   
     gross margin                               -15.2%      -4.8%      -4.1%
    Manufacturing Operations segment non-                                   
     GAAP gross margin                           -1.3%       0.0%       4.1%
                                                                            
  Manufacturing Operations segment GAAP                                     
   operating profit                               (16)        (5)        (6)
    PPA effects                                    (6)        (6)        (5)
    Restructuring                                  (5)         -         (1)
    Other incidentals                              (5)         2         (2)
                                            ---------  ---------  --------- 
  Manufacturing Operations segment non-GAAP                                 
   operating profit                         $       -  $      (1) $       2 
                                            =========  =========  ========= 
                                                                            
    Manufacturing Operations segment GAAP                                   
     operating margin                           -20.3%      -8.1%     -12.2%
    Manufacturing Operations segment non-                                   
     GAAP operating margin                        0.0%      -1.6%       4.1%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
Corporate and Other Revenue                 $      11  $      10  $       7 
  Percent of Total Revenue                        1.0%       0.9%       0.6%
  Corporate and Other segment GAAP gross                                    
   profit                                          13         10          2 
    PPA effects                                     -          -          - 
    Restructuring                                   -          -          - 
    Other incidentals                               -          -          - 
                                            ---------  ---------  --------- 
  Corporate and Other segment non-GAAP                                      
   gross profit                             $      13  $      10  $       2 
                                            =========  =========  ========= 
                                                                     
       
  Corporate and Other segment GAAP gross                                    
   margin                                          NM         NM         NM 
  Corporate and Other segment non-GAAP                                      
   gross margin                                    NM         NM         NM 
                                                                            
  Corporate and Other segment GAAP                                          
   operating profit                                (3)       (16)       (26)
    PPA effects                                     -          -          - 
    Restructuring                                  (1)        (2)        (4)
    Other incidentals                              (8)       (11)       (11)
                                            ---------  ---------  --------- 
  Corporate and Other segment non-GAAP                                      
   operating profit                         $       6  $      (3) $     (11)
                                            =========  =========  ========= 
                                                                            
  Corporate and Other segment GAAP                                          
   operating margin                                NM         NM         NM 
  Corporate and Other segment non-GAAP                                      
   operating margin                                NM         NM         NM 
  ------------------------------------------------------------------------- 
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 5: Financial Reconcilliation of GAAP to non-GAAP Results (unaudited)  
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                                            
($ in millions except share data)               Three Months Ended          
                                         -------------------------------    
                                           Oct 2,    July 1,    Sept 30,    
                                            2011       2012       2012      
                                         ---------  ---------  ---------    
                                                                            
Revenue                                  $   1,060  $   1,094  $   1,170    
                                                                            
GAAP Gross profit                        $     488  $     538  $     536    
  PPA effects                                  (15)        (9)        (4)   
  Restructuring                                 (4)        (1)         -    
  Other incidentals                             (5)        (3)        (2)   
  Other adjustments                              -         46          -    
                                         ---------  ---------  ---------    
Non-GAAP Gross profit                    $     512  $     505  $     542    
                                         =========  =========  =========    
                                                                            
GAAP Gross margin                             46.0%      49.2%      45.8%   
                                                                            
Non-GAAP Gross margin                         48.3%      46.2%      46.3%   
                                                                            
  GAAP Research and development          $    (165) $    (156) $    (153)   
    PPA effects                                  -          -          -    
    Restructuring                               (1)         1          -    
    Other incidentals                            -         (6)        (3)   
                                         ---------  ---------  ---------    
  Non-GAAP Research and development      $    (164) $    (151) $    (150)   
                                         =========  =========  =========    
                                                                            
  GAAP Selling, general and                                                 
   administrative                        $    (219) $    (231) $    (236)   
    PPA effects                                (68)       (64)       (61)   
    Restructuring                               (2)        (2)        (4)   
    Other incidentals                           (8)       (13)       (10)   
                                         ---------  ---------  ---------    
  Non-GAAP Selling, general and                                             
   administrative                        $    (141) $    (152) $    (161)   
                                         =========  =========  =========    
                                                                            
  GAAP Other income (expense)            $       5  $       5  $      21    
    PPA effects                                  -          -          -    
    Restructuring                                -          1          -    
    Other incidentals                            2          2         20    
                                         ---------  ---------  ---------    
  Non-GAAP Other income (expense)        $       3  $       2  $       1    
                                         =========  =========  =========    
                                                                            
GAAP Operating income (loss)             $     109  $     156  $     168    
  PPA effects                                  (83)       (73)       (65)   
  Restructuring                                 (7)        (1)        (4)   
  Other incidentals                            (11)       (20)         5    
  Other adjustments                              -         46          -    
                                         ---------  ---------  ---------    
Non-GAAP Operating income (loss)         $     210  $     204  $     232    
                                         =========  =========  =========    
                                                                            
GAAP Operating margin                         10.3%      14.3%      14.4%   
                                                                            
Non-GAAP Operating margin                     19.8%      18.6%      19.8%   
                                                                            
GAAP Financial income (expense)          $    (174) $    (178) $     (33)   
  Foreign exchange gain (loss) on debt         (82)      (104)        48    
  Gain (loss) on extinguishment of long                                     
   term debt                                   (11)         -        (11)   
  Other financial expense                       (8)        (4)        (5)   
                                         ---------  ---------  ---------    
Non-GAAP Financial income (expense)      $     (73) $     (70) $     (65)   
                                         =========  =========  =========    
                                                                            
GAAP Income tax benefit (provision)      $     (20) $      (7) $      (6)   
  Other adjustments                            (19)        (2)         3    
                                         ---------  ---------  ---------    
Non-GAAP Cash tax (expense)              $      (1) $      (5) $      (9)   
                                         =========  =========  =========    
                                                                            
GAAP Results relating to equity-                                            
 accounted investees                     $     (25) $     (45) $       
2    
  Other adjustments                            (25)       (45)         2    
                                         ---------  ---------  ---------    
Non-GAAP Results relating to equity-                                        
 accounted investees                     $       -  $       -  $       -    
                                         =========  =========  =========    
                                                                            
GAAP Income (loss) from continuing                                          
 operations                              $    (110) $     (74) $     131    
  PPA effects                                  (83)       (73)       (65)   
  Restructuring                                 (7)        (1)        (4)   
  Other incidentals                            (11)       (20)         5    
  Other adjustments                           (145)      (109)        37 (1)
                                         ---------  ---------  ---------    
Non-GAAP Income (loss) from continuing                                      
 operations                              $     136  $     129  $     158    
                                         =========  =========  =========    
                                                                            
GAAP Income (loss) on discontinued                                          
 operations - net of tax                 $     421  $       -  $       -    
  Other adjustments                            421          -          -    
                                         ---------  ---------  ---------    
Non-GAAP Income (loss) from discontinued                                    
 operations                              $       -  $       -  $       -    
                                         =========  =========  =========    
                                                                            
GAAP Net income (loss) attributable to                                      
 stockholders                            $     301  $     (90) $     115    
  PPA effects                                  (83)       (73)       (65)   
  Restructuring                                 (7)        (1)        (4)   
  Other incidentals                            (11)       (20)         5    
  Other adjustments                                                         
                                               276       (109)        37 (1)
                                         ---------  ---------  ---------    
Non-GAAP Net income (loss) attributable                                     
 to stockholders                         $     126  $     113  $     142 (2)
                                         =========  =========  =========    
                                                                            
GAAP Weighted average shares - diluted     248,318    248,272    253,060    
  Non-GAAP Adjustment                        3,152      5,115          -    
                                         ---------  ---------  ---------    
Non-GAAP Weighted average shares -                                          
 diluted                                   251,470    253,387    253,060    
                                         =========  =========  =========    
                                                                            
GAAP Diluted net income (loss)                                              
 attributable to stockholders per share  $    1.21  $   (0.36) $    0.45    
Non-GAAP Diluted net income (loss)                                          
 attributable to stockholders per share  $    0.50  $    0.45  $    0.56    
                                                                            
----------------------------------------------------------------------------
                                                                            
(1) Includes: Foreign exchange gain on debt: $48 million; Other             
 financial expense: $(16) million; Results relating to equity-accounted     
 investees: $2 million; and difference between book and cash income         
 taxes: $3 million.                                                         
                                                                            
(2) Includes stock based compensation expense of $12 million.               
                                                                            
NXP Semiconductors                                                          
Table 6: Adjusted EBITDA (unaudited)                                        
                                                                            
--------------------------------------------------------------------------- 
                                                                            
($ in millions)                                    Three Months Ended       
                                            ------------------------------- 
                                              Oct 2,    July 1,    Sept 30, 
                                               2011       2012       2012   
                                            ---------  ---------  --------- 
                                                                            
Net Income                                  $     311  $     (74) $     131 
  Income (loss) on discontinued operations        421          -          - 
                                            ---------  ---------  --------- 
Income (loss) from continuing operations    $    (110) $     (74) $     131 
                                            =========  =========  ========= 
                                                                            
Reconciliing items to EBITDA                                                
  Financial (income) expense                      174        178         33 
  Benefit (provision) for income taxes             20          7          6 
  Depreciation                                     68         62         59 
  Amortization                                     84         77         69 
                                            ---------  ---------  --------- 
EBITDA                                      $     236  $     250  $     298 
                                            =========  =========  ========= 
                                                                            
Reconciling items to adjusted EBITDA                                        
  Results of equity-accounted investees            25         45         (2)
  Restructuring 1)                                  7          1          3 
  Other incidental items 1)                        11         19         (5)
  Other adjustments                                 -        (46)         - 
                                            ---------  ---------  --------- 
Adjusted EBITDA                             $     279  $     269  $     294 
                                            =========  =========  ========= 
                                                                            
Trailing twelve month adjusted EBITDA       $   1,173  $     974  $     989 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
  1) Excluding depreciation property, plant                                 
   and equipment related to:                                                
                                                                            
    Restructuring                                   -          -          1 
    Other incidental items                          -          1          - 

  
For further information, please contact:
Investors:
Jeff Palmer
jeff.palmer@nxp.com
+1 408 518 5411 
Media:
Lieke de Jong-Tops
lieke.
de.jong-tops@nxp.com
+31(0)40 272 5202 
 
 
Press spacebar to pause and continue. Press esc to stop.