NXP meets guidance, but says demand is uncertain

Semiconductor supplier NXP said its third-quarter sales met guidance, but is a bit uncertain on future demand.
Semiconductor supplier NXP said its third-quarter sales met guidance, but is a bit uncertain on future demand. (Wikipedia)

Semiconductor supplier NXP Semiconductor posted revenue of $2.26 billion in its third fiscal quarter of 2019, up slightly from $2.21 billion the previous quarter but down from $2.44 billion in the year-ago quarter. Sales met the company’s guidance.

The company recorded a GAAP gross profit of $1.18 billion, up slightly from $1.15 billion the previous quarter and slightly down from $1.25 billion a year ago. Gross margin was 52.4%.

“With sales near the high-end of our guidance and good expense control, we successfully delivered improved operating profitability above the high-end of our guidance range,” said Richard Clemmer, NXP Chief Executive Officer, in a statement. “Additionally, during the quarter we returned $79 million to our shareholders, for a total of $6.6 billion returned to shareholders since July 2018.”

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By application, the automotive sector accounted for the bulk of NXP’s revenue at $1.048 billion, followed by industrial & IoT, mobile, and communications and infrastructure.

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“Looking forward, we continue to believe that our product portfolio investments are addressing our customers’ long-term requirements, while in the short-term the global demand environment appears to have stabilized, but the intermediate demand environment continues to be uncertain, and has not markedly improved.” Clemmer said. 

For the fourth quarter, NXP projects revenue of $2.24 to $2.3 billion, with gross profit of $1.17 to $1.22 billion. Projected gross margin is 52.6%.

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