NXP Semiconductors Announces First Quarter 2009 Results
* Q1 sales USD 673* M versus USD 1,519 M in Q1 2008 and USD 979** M in Q4 2008
* Comparable QoQ sales decrease of 29.4%
* Q1 adjusted EBITDA (excluding effects of Purchase Price Accounting) was a loss of USD 71M, compared to a profit of USD 183M in Q1 2008 and a profit of USD 41M in Q4 2008
* Cash position of USD 1,706M*** at the end of Q1 compared to USD 1,796M at the end of Q4 2008
* Significant progress has been made in executing the Redesign Program. The program is now expected to achieve a higher level of savings than originally anticipated, and total restructuring costs are now expected to be no greater than USD 700 M
* Factory loading of 36% in Q1 compared to 87% in Q1 2008 and 56% in Q4 2008
* Book to bill ratio improved in Q1 2009 to 1.18 compared to 0.71 in Q4 2008. NXP believes the improved book to bill is primarily driven by supply chain replenishment as opposed to any fundamental improvement of the semiconductors market
*) Excluding USD 29 million wafer sales to ST-Ericsson Wireless JV in Q1 2009
**) Excluding USD 47 million wafer sales to ST-NXP Wireless JV in Q4 2008
***) Including USD 200 million draw down during Q1 from NXP’s revolving credit facility and USD 92 million from the divesture of the remaining 20% of ST-NXP Wireless JV.
Eindhoven, The Netherlands. – NXP Semiconductors today announced first quarter sales of USD 673 million, a comparable decrease of 29.4% from the fourth quarter of 2008. Adjusted EBITDA in the first quarter amounted to a loss of USD 71 million, down from a profit of USD 183 million in the first quarter of 2008 and down from a profit of USD 41 million in the fourth quarter of 2008. Adjusted EBITA showed a loss of USD 188 million this quarter compared to a profit of USD 41 million in the same period last year and a loss of USD 84 million in the previous quarter.
The cash position was USD 1,706 million at the end of the first quarter, which includes USD 92 million from the sale of the ST-NXP Wireless shares and USD 200 million drawn down from NXP’s revolving credit facility which is now at a total of USD 600 million. The Q1 cash position compares with USD 1,796 million at the end of the fourth quarter of 2008.
During the period significant progress has been made on execution of the large-scale Redesign Program announced in September 2008. This program is focused on making necessary changes to withstand the significant weakness prevailing in the industry and to optimize the businesses to help deliver NXP’s longer term strategic objectives. The program is now forecast to have restructuring costs of no greater than USD 700 million and is expected to achieve higher annual savings than those initially projected (USD 550 million) by the end of 2010. While the cash expense of the Redesign Program will remain the same in total, the cash-out for the Redesign will increase significantly in the next quarters.
Market conditions remain extremely challenging for the semiconductor industry with very low visibility.
Outlook: Visibility of sales development going forward remains extremely limited. The very weak macro-economic conditions are still continuing. Although we recently experienced positive order book developments, we believe the improved book to bill is primarily driven by supply chain replenishment as opposed to any fundamental improvement of the semiconductors market.
Under these circumstances, a 10 to 25% sequential sales increase in the second quarter on a business and currency comparable basis could be achievable, which excludes wafer sales to the ST-Ericsson Wireless joint venture. It is still very unclear how the overall market sentiment in the remainder of the year will develop.
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