NXP Semiconductors Reports Third Quarter 2024 Results | The Manila Times

EINDHOVEN, The Netherlands, Nov. 04, 2024 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the third quarter, which ended September 29, 2024. "NXP delivered quarterly revenue of $3.25 billion, in-line with our overall guidance. While we experienced some strength against our expectations in the Communication Infrastructure, Mobile and Automotive end markets, we were confronted with increasing macro related weakness in the Industrial & IoT market. Our guidance for the fourth quarter reflects broader macro weakness especially in Europe and the Americas. We focus on managing what is in our control enabling NXP to drive resilient profitability and earnings in an uncertain demand environment,” said Kurt Sievers, NXP President and Chief Executive Officer.

Key Highlights for the Third Quarter 2024:

Revenue was $3.25 billion, down 5 percent year-on-year;
GAAP gross margin was 57.4 percent, GAAP operating margin was 30.5 percent and GAAP diluted Net Income per Share was $2.79;
Non-GAAP gross margin was 58.2 percent, non-GAAP operating margin was 35.5 percent, and non-GAAP diluted Net Income per Share was $3.45;
Cash flow from operations was $779 million, with net capex investments of $186 million, resulting in non-GAAP free cash flow of $593 million;
During the third quarter of 2024, NXP continued to execute its capital return policy with the payment of $259 million in cash dividends, and the repurchase of $305 million of its common shares. The total capital return of $564 million in the quarter represented 95 percent of third quarter non-GAAP free cash flow. On a trailing twelve month basis, capital return to shareholders represented $2.4 billion or 87 percent of non-GAAP free cash flow. The interim dividend for the third quarter 2024 was paid in cash on October 9, 2024 to shareholders of record as of September 12, 2024. On August 29th, the NXP board of directors authorized an additional $2.0 billion for share repurchases, resulting in a $2.64 billion share repurchase balance at the end of the third quarter. Subsequent to the end of the third quarter, between September 30, 2024 and November 1, 2024, NXP executed via a 10b5-1 program additional share repurchases totaling $117 million;
On August 20, 2024, ESMC, the previously announced manufacturing joint venture between TSMC, Robert Bosch GmbH, Infineon Technologies AG and NXP Semiconductors N.V. held a groundbreaking ceremony to mark the initial phase of construction of its first semiconductor fab in Dresden, Germany;
On September 4, 2024, Vanguard International Semiconductor Corporation and NXP Semiconductors N.V. announced the receipt of all necessary governmental approvals from relevant authorities and injected capital to officially establish the previously announced VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) manufacturing joint venture. The company will now proceed with the planned construction of VSMC's first 300mm wafer manufacturing facility;
On September 10, 2024, NXP announced the Trimension® SR250, the industry's first single-chip, UWB solution to enable Industrial and IoT applications that integrates on-chip processing capabilities with both short-range UWB-based radar and secure ranging;
On September 17, 2024, NXP announced the MC33777, the world's first electric vehicle battery junction box IC that consolidates essential BMS functions into a single device; and
On September 24, 2024, NXP announced the new i.MX RT700 crossover MCU family, designed to power smart AI-enabled edge devices, such as wearables, consumer medical devices, smart home devices and HMI platforms.

Summary of Reported Third Quarter 2024 ($ millions, unaudited) ⁽¹⁾

	Q3 2024			Q2 2024 Get the latest news delivered to your inbox Sign up for The Manila Times newsletters By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.			Q3 2023			Q - Q	Y - Y
Total Revenue	$	3,250		$	3,127		$	3,434		4%	-5%
GAAP Gross Profit	$	1,866		$	1,792		$	1,965		4%	-5%
Gross Profit Adjustments⁽ⁱ⁾	$	(26	)	$	(41	)	$	(45	)
Non-GAAP Gross Profit	$	1,892		$	1,833		$	2,010		3%	-6%
GAAP Gross Margin		57.4	%		57.3	%		57.2	%
Non-GAAP Gross Margin		58.2	%		58.6	%		58.5	%
GAAP Operating Income (Loss)	$	990		$	896		$	992		10%	-%
Operating Income Adjustments⁽ⁱ⁾	$	(163	)	$	(175	)	$	(211	)
Non-GAAP Operating Income	$	1,153		$	1,071		$	1,203		8%	-4%
GAAP Operating Margin		30.5	%		28.7	%		28.9	%
Non-GAAP Operating Margin		35.5	%		34.3	%		35.0	%
GAAP Net Income (Loss) attributable to Stockholders	$	718		$	658		$	787
Net Income Adjustments⁽ⁱ⁾	$	(172	)	$	(171	)	$	(178	)
Non-GAAP Net Income (Loss) Attributable to Stockholders	$	890		$	829		$	965
GAAP diluted Net Income (Loss) per Share⁽ⁱⁱ⁾	$	2.79		$	2.54		$	3.01
Non-GAAP diluted Net Income (Loss) per Share⁽ⁱⁱ⁾	$	3.45		$	3.20		$	3.70

Additional information
	Q3 2024		Q2 2024		Q3 2023 Advertisement		Q - Q	Y - Y
Automotive	$	1,829	$	1,728	$	1,891	6%	-3%
Industrial & IoT	$	563	$	616	$	607	-9%	-7%
Mobile	$	407	$	345	$	377	18%	8%
Comm. Infra. & Other	$	451	$	438	$	559	3%	-19%
DIO		149		148		134
DPO		60		64		60
DSO		30		27		25
Cash Conversion Cycle		119		111		99
Channel Inventory (weeks / months)		8 / 1.9		7 / 1.7		7 / 1.5
Gross Financial Leverage⁽ⁱⁱⁱ⁾		1.9x		1.9x		2.1x
Net Financial Leverage^(iv)		1.3x		1.3x		1.3x

Additional Information for the Third Quarter 2024:
1. For an explanation of GAAP to non-GAAP adjustments, please see "Non-GAAP Financial Measures”.
2. Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
3. Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
4. Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.

Guidance for the Fourth Quarter 2024: ($ millions, except Per Share data) ⁽¹⁾