Summary
NXP Semiconductors N.V. (NXPI) filed its annual report on Form 20-F for the fiscal year ended December 31, 2011, highlighting a return to profitability driven significantly by the divestment of its Sound Solutions business and improved operational performance. The company reported a net income attributable to stockholders of $390 million for 2011, a substantial turnaround from a net loss of $456 million in 2010. This was largely due to a significant gain of $414 million from the sale of its Sound Solutions business, which was classified as discontinued operations, contributing $434 million to net income. Revenue for the year decreased slightly to $4.194 billion from $4.402 billion in 2010, primarily due to the expiration of contractual obligations with divested businesses and a decline in the Manufacturing Operations segment. However, the core High Performance Mixed Signal (HPMS) and Standard Products (SP) segments showed combined revenue growth, driven by strong performance in Identification and the SP portfolio.
Financial Highlights
55 data points| Revenue | $4.17B |
| Cost of Revenue | $2.29B |
| Gross Profit | $1.91B |
| R&D Expenses | $635.00M |
| SG&A Expenses | $918.00M |
| Operating Income | $357.00M |
| Interest Expense | $312.00M |
| Net Income | $390.00M |
| EPS (Basic) | $1.57 |
| EPS (Diluted) | $1.57 |
| Shares Outstanding (Basic) | 248.81M |
| Shares Outstanding (Diluted) | 248.81M |
Key Highlights
- 1NXP Semiconductors reported a net income of $390 million in 2011, a significant improvement from a net loss of $456 million in 2010, primarily driven by the $855 million sale of its Sound Solutions business which resulted in a $414 million gain.
- 2Total revenue for 2011 was $4.194 billion, a slight decrease of 4.7% year-over-year, impacted by the expiration of contractual obligations with divested businesses and a downturn in Manufacturing Operations.
- 3The High Performance Mixed Signal (HPMS) segment saw a 2.1% nominal revenue increase to $2.906 billion, driven by the Identification business and high-performance RF products.
- 4The Standard Products (SP) segment reported a 9.1% nominal revenue increase to $925 million, reflecting strong performance across its portfolio, though growth moderated in Q4 due to economic uncertainty.
- 5The company's focus on restructuring and cost optimization, including the Redesign Program which achieved $928 million in annualized savings by the end of 2011, contributed to improved gross margins.
- 6Total debt was reduced significantly from $4.551 billion in 2010 to $3.799 billion in 2011 through debt buybacks and redemptions, partially offset by new borrowings.
- 7Despite operational improvements and a return to profitability, the company indicated no intention to pay dividends in the foreseeable future, planning to retain earnings for business operations and debt repayment.