|Q4 2013||FY 2013|
|Revenue||$1,293 million||$4,815 million|
|GAAP Gross margin||45.6%||45.2%|
|GAAP Operating margin||15.3%||13.5%|
|GAAP Diluted earnings per share||$0.37||$1.36|
|Non-GAAP Gross margin||49.2%||47.7%|
|Non-GAAP Operating margin||25.1%||23.3%|
|Non-GAAP Diluted earnings per share||$0.99||$3.29|
Eindhoven, The Netherlands, February 6, 2014 – NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the fourth quarter and the full-year of 2013, ended December 31, 2013, and provided guidance for the first quarter 2014.
“Our results for the fourth quarter of 2013 again came in near the high-end of our guidance, as NXP delivered Product revenue of $1,251 million, approximately a 3 percent sequential increase, and nearly a 17 percent increase from the prior year period - very good performance when considering the fourth quarter is usually a seasonality declining quarter for NXP. Total NXP revenue in the fourth quarter was $1,293 million, nearly a 4 percent sequential increase, and nearly a 16 percent increase from the prior year period,” said Richard Clemmer, NXP Chief Executive Officer.
“On a full-year basis, NXP delivered Product revenue of $4,678 million, a 13 percent year-on-year growth, as demand associated with key HPMS design opportunities continued to accelerate. Specifically, full-year revenue in our core HPMS segment increased 19 percent year-on-year due to very strong and better than industry growth across all our HPMS end markets. In our Standard product segment full-year revenue declined 2 percent year-on-year, reflecting flat growth in our discrete components business, and a decline in our logic business. Taken together, total NXP revenue increased greater than 10 percent year-on-year to $4,815 million.
“Growth in our HPMS segment during the fourth quarter was strong, resulting in growth of 22 percent year-on-year growth and about 4 percent sequentially. We experienced record revenue levels in both our Automotive and Portable & Computing end markets – both in excess of guidance. Our Automotive business delivered better than seasonal growth due to sales of entertainment and keyless-entry products. With sales up 21 percent year-on-year, our Automotive business is firmly established on a sales run-rate of greater than $1 billion per year. Within our Portable & Computing business, revenue was up 50 percent versus the prior year driven by strong demand for our MCU and high-speed interface products for strategic design wins in the high-end smartphone and tablet market. Performance in our Identification business was in-line with expectations and up 13 percent year on year. The results in our Industrial & Infrastructure were slightly below our expectations as a result of weaker than expected demand for PC notebook power supply and silicon tuner products, but still up nearly 20 percent year-on-year.
“From an earnings per share perspective, we exceeded the mid-point of guidance due to stronger overall product revenue. Additionally, as planned we continued to realize an improvement in gross margin within our Standard Products segment and demonstrated good overall operating expense control. Taken together, our above market growth and ongoing improving margin performance resulted in a 19 percent non-GAAP free cash flow margin during the quarter. In summary, 2013 was a very good year for NXP – a year our strategy of providing differentiated product solutions was confirmed by strong support from our customers resulting in significant revenue and earnings growth. We would like to thank all of the NXP team for their efforts in helping to deliver our performance. We believe our strategy will continue to deliver robust results,” said Clemmer.