Summary
NXP Semiconductors N.V. (NXPI) reported its 2016 fiscal year results, a period marked by significant strategic actions, including the impactful acquisition of Freescale Semiconductor and the announcement of its impending acquisition by Qualcomm. Financially, NXP saw a substantial revenue increase to $9.5 billion, driven largely by the inclusion of Freescale's operations. However, gross profit margin declined to 42.8% primarily due to purchase accounting adjustments related to the Freescale merger. Operating expenses also rose significantly, largely due to amortization of acquisition-related intangibles and merger integration costs. The company ended the year with a net loss attributable to stockholders of $200 million, a notable decrease from the prior year's profit, largely influenced by the merger-related expenses and a $1.43 billion amortization charge for acquisition-related intangibles. Despite these challenges, NXP's liquidity remained robust, supported by strong cash flow from operations. The company also made significant progress in divesting its Standard Products business, which was completed in early 2017.
Financial Highlights
55 data points| Revenue | $9.50B |
| Cost of Revenue | $5.43B |
| Gross Profit | $4.07B |
| R&D Expenses | $1.56B |
| SG&A Expenses | $1.14B |
| Operating Income | -$150.00M |
| Interest Expense | $408.00M |
| Net Income | $200.00M |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.58 |
| Shares Outstanding (Basic) | 338.48M |
| Shares Outstanding (Diluted) | 347.61M |
Key Highlights
- 1Revenue surged by 55.7% to $9.498 billion, primarily due to the acquisition of Freescale Semiconductor.
- 2Gross profit margin decreased to 42.8% from 45.7% in the prior year, impacted by purchase accounting adjustments related to the Freescale acquisition.
- 3Operating expenses more than doubled to $4.228 billion, significantly influenced by $1.527 billion in amortization of acquisition-related intangibles.
- 4The company reported a net loss attributable to stockholders of $200 million for 2016, compared to a net income of $1.526 billion in 2015.
- 5NXP announced a definitive agreement in October 2016 to be acquired by Qualcomm for approximately $38 billion, or $110 per share in cash.
- 6The divestiture of the Standard Products (SP) business was completed in February 2017, resulting in $2.75 billion in cash proceeds.
- 7Total debt remained substantial at $9.187 billion as of December 31, 2016, though the company's net debt decreased due to strong cash generation.