01—Abstract
Summary
Summary of the 20-F filed February 28, 2014. Cited figures are marked; the original filing is the authoritative source.
NXP Semiconductors N.V.
(NXPI) reported strong revenue growth in 2013, increasing by 10.5% to $4.815 billiona, primarily driven by its High Performance Mixed Signal (HPMS) segment, which saw an 18.7% increase. The company's Identification and Automotive businesses within HPMS showed particularly robust growth. Despite the revenue increase, gross profit margin slightly decreased from 45.6% to 45.2% year-over-year, impacted by the absence of a prior year legal award and competitive pricing in the Standard Products segment.
Operating expenses also saw a reduction, contributing to a significant increase in operating income from $412 million to $651 millionb. Financially, NXP managed its debt effectively, reducing its total debt from $3.49 billion to $3.32 billion, while its cash balance increased to $670 million. The company's liquidity remains strong, with sufficient resources to fund operations and capital expenditures.
02—Key points
Key Highlights
- Revenue increased by 10.5% to $4.815 billion in 2013, driven by strong performance in the HPMS segment.
- HPMS segment revenue grew by 18.7%, with Identification and Automotive businesses showing significant gains.
- Operating income increased significantly to $651 million in 2013, up from $412 million in 2012, reflecting improved operational efficiency and cost management.
- Total debt was reduced to $3.32 billion, and the company maintained a healthy cash balance of $670 million.
- The company did not pay any dividends and intends to retain earnings for business operations and debt repayment.
- NXP continues to invest in R&D, with expenses totaling $639 million in 2013, with a focus on High Performance Mixed Signal solutions.
- The company's strategy is focused on key macro growth trends such as security, mobility, energy efficiency, and healthcare.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, NXP Semiconductors N.V. kept $0.07.
- Revenue$4.82B100.0%
- Cost of revenue−$2.64B54.8%
- Gross profit$2.18B45.2%
- Operating costs−$1.53B31.7%
- Operating income$651.0M13.5%
- Interest, other & tax−$303.0M6.3%
- Net income$348.0M7.2%
Where FY2013 revenue went
$4.82B- Cost of revenue: $2.64B, 55% of revenue
- SG&A: $664.0M, 14% of revenue
- R&D: $639.0M, 13% of revenue
- Net income: $348.0M, 7.2% of revenue
- Other operating costs: $223.0M, 4.6% of revenue
- Interest, other & tax: $303.0M, 6.3% of revenue
Kept 7.2% as net incomeNet income $348.0M · 7.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 28, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $4.82B$4.36B | +10.5% |
| Cost of Revenue | $2.64B$2.37B | +11.3% |
| Gross Profit | $2.18B$1.99B | +9.5% |
| R&D Expenses | $639.00M$628.00M | +1.8% |
| SG&A Expenses | $664.00M$977.00M | −32.0% |
| Operating Income | $651.00M$412.00M | +58.0% |
| Interest Expense | $214.00M$270.00M | −20.7% |
| Net Income | $348.00M-$115.00M | +402.6% |
| EPS (Basic) | $1.40$-0.46 | +404.3% |
| EPS (Diluted) | $1.36$-0.46 | +395.7% |
| Shares Outstanding (Basic) | 248.53M248.06M | +0.2% |
| Shares Outstanding (Diluted) | 255.05M248.06M | +2.8% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of NXP Semiconductors in 2013?
NXP Semiconductors reported a strong financial performance in 2013, with a 10.5% increase in revenue to $4.815 billion. Operating income saw a substantial rise to $651 million from $412 million in the previous year. The company also successfully reduced its total debt and maintained a healthy cash position.
Which business segments drove NXP's revenue growth in 2013?
The High Performance Mixed Signal (HPMS) segment was the primary driver of revenue growth, with an 18.7% increase. Specifically, the Identification and Automotive businesses within the HPMS segment demonstrated particularly strong performance.
How did NXP manage its debt and liquidity in 2013?
NXP effectively managed its debt by reducing its total debt by $171 million, bringing it down to $3.32 billion. The company's cash and cash equivalents increased to $670 million, providing ample liquidity to fund operations and capital expenditures. NXP also continued to focus on its share repurchase program.
What is NXP's strategy regarding research and development (R&D)?
NXP views R&D as crucial for its future success and continued investment in High Performance Mixed Signal solutions. In 2013, R&D expenses amounted to $639 million, with a strategic focus on capturing growth in emerging markets and leveraging key macro growth trends such as security, mobility, energy efficiency, and healthcare.
06—Continue