NXP Semiconductors reported revenue of $2.2 billion in the second quarter, down 3% from a year ago but with sales just above midway in the company’s guidance range. Operating income was $157 million, an increase of 15%.
“We continue to be optimistic that our product portfolio investments are addressing our customers’ long-term requirements, while in the short-term, the global demand environment has generally not improved,” NXP Ceo Richard Clemmer said in a statement on Tuesday.
In a call with analysts, Clemmer said NXP is excited about prospects for revenues from new semiconductor technology focused on radar for auto driver assist safety such as emergency braking and blind spot detection. “We have emerged as a complete supplier for radar subsystems,” he said.
NXP has also been operating in stealth mode in creating technologies depending on Ultrawideband (UWB) wireless for applications in auto, IoT and smart home, Clemmer said. Accuracy and low latency make UWB ideal for car security and home security, he said, giving NXP “first mover advantage.”
NXP announced in May that it would acquire Marvell’s Wireless Connectivity portfolio for $1.76 billion in cash. The acquisition will result in incremental revenue of $600 million by 2022, Clemmer said.
He also said that NXP’s smart secure wallet technology has been widely deployed across all models of smartphones by a single Chinese phone manufacturer that he didn’t name. Chinese customers see value in the technology for mass transit ticketing. In India, NXP mobile wallet technology is used in phones that cost only $25.
For the second quarter, revenues from automotive, industrial and IoT customers were down year over year, while mobile sales increased by 25%. Automotive sales declined 10%, to $1.031 billion. Industrial and IoT sales also declined by 14% to $390 million.
NXP said revenues will be down in the third quarter compared to a year ago by 7% to 10%, while operating income should be improved by 8%.
The company's stock price was $104.23 before the market opening on Tuesday.
Starting in October, NXP will file a 10Q statement with the U.S. Securities and Exchange Commission while continuing to be based on the Netherlands, the company said.