Summary
NXP Semiconductors N.V. (NXPI) reported a strong first quarter of 2021, demonstrating significant year-over-year growth across key strategic markets. Revenue surged by 27% to a record $2.57 billion, driven by robust demand in Automotive, Industrial & IoT, and Mobile segments, with notable strength in Greater China and Asia Pacific. The company also saw an expansion in its gross profit margin to 52.8%, up from 49.3% in the prior year quarter, attributed to higher revenue, improved operational efficiencies, and cost reductions. Despite increased R&D spending, overall operating expenses as a percentage of revenue decreased due to lower amortization of acquisition-related intangibles and a favorable year-over-year comparison. The company generated strong operating cash flow of $732 million, supporting significant capital returns to shareholders through dividends and substantial share repurchases. NXPI ended the quarter with a healthy cash position of $1.84 billion and access to an additional $1.5 billion credit facility, indicating a solid liquidity outlook.
Financial Highlights
54 data points| Revenue | $2.57B |
| Cost of Revenue | $1.21B |
| Gross Profit | $1.35B |
| R&D Expenses | $461.00M |
| SG&A Expenses | $222.00M |
| Operating Expenses | $863.00M |
| Operating Income | $492.00M |
| Interest Expense | $87.00M |
| Net Income | $353.00M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.25 |
| Shares Outstanding (Basic) | 277.53M |
| Shares Outstanding (Diluted) | 283.26M |
Key Highlights
- 1Record quarterly revenue of $2.57 billion, up 27% year-over-year, driven by strong performance in Automotive, Industrial & IoT, and Mobile segments.
- 2Gross profit margin improved to 52.8% from 49.3% in the prior year quarter, reflecting higher volumes and operational efficiencies.
- 3Significant increase in operating income to $492 million from $68 million in Q1 2020.
- 4Diluted EPS turned positive at $1.25, compared to a loss of $0.08 in Q1 2020.
- 5Strong cash flow from operations of $732 million.
- 6Substantial share repurchases of $905 million during the quarter, alongside dividend payments of $105 million, reflecting commitment to shareholder returns.
- 7Company ended the quarter with $1.84 billion in cash and cash equivalents, and total liquidity of $3.34 billion including its revolving credit facility.