Early Access

10-KPeriod: FY2020

NXP Semiconductors N.V. Annual Report, Year Ended Dec 31, 2020

Filed February 25, 2021For Securities:NXPI

Summary

NXP Semiconductors N.V. (NXPI) reported revenues of $8.61 billion for the fiscal year ended December 30, 2020, a slight decrease of 3% from $8.88 billion in 2019. This decline was primarily attributed to the challenging economic environment caused by the COVID-19 pandemic, which significantly impacted the Automotive and Communication Infrastructure & Other segments. However, the Industrial & Internet of Things (IoT) and Mobile segments showed resilience, with Industrial & IoT revenue increasing by 15% and Mobile revenue by 5%, both reaching new all-time highs. The company navigated the pandemic by focusing on mitigating impacts to its people and business, while maintaining critical long-term investments. NXP demonstrated strong operating cash flow generation of $2.48 billion and returned $1.05 billion to shareholders through dividends and share repurchases. The company's financial position remained strong, with a cash balance of $2.28 billion and access to a $1.5 billion revolving credit facility, providing ample liquidity.

Financial Statements
Beta
Revenue$8.61B
Cost of Revenue$4.38B
Gross Profit$4.24B
R&D Expenses$1.73B
SG&A Expenses$879.00M
Operating Expenses$3.93B
Operating Income$418.00M
Interest Expense$362.00M
Net Income$52.00M
EPS (Basic)$0.19
EPS (Diluted)$0.18
Shares Outstanding (Basic)279.76M
Shares Outstanding (Diluted)283.81M

Key Highlights

  • 1Revenue for 2020 was $8.61 billion, a 3% decrease from $8.88 billion in 2019, primarily due to the COVID-19 pandemic's impact on the Automotive and Communication Infrastructure & Other segments.
  • 2Industrial & IoT revenue grew 15% year-over-year to $1.84 billion, and Mobile revenue increased 5% to $1.25 billion, both reaching record highs.
  • 3Gross profit margin decreased to 49.2% in 2020 from 52.0% in 2019, impacted by lower revenue and reduced manufacturing activity.
  • 4Operating expenses decreased by 1.8% to $3.93 billion, mainly due to lower SG&A costs, partially offset by increased R&D spending.
  • 5The company generated $2.48 billion in cash flow from operating activities.
  • 6NXP returned $1.05 billion to shareholders through dividends ($420 million) and share repurchases ($627 million) in 2020.
  • 7Total debt remained significant at $7.61 billion, though net debt decreased to $5.33 billion from $6.32 billion in the prior year.

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