UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934
October 30, 2007
Commission File Number: 333-142287
NXP B.V.
(Exact name of registrant as specified in
charter)
The Netherlands
(Jurisdiction of incorporation or
organization)
60 High Tech Campus, 5656 AG,
Eindhoven, The Netherlands
(Address of principal executive
offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
x |
|
Form 40-F |
o |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).
Yes |
o |
|
No |
x |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).
Yes |
o |
|
No |
x |
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes |
o |
|
No |
x |
Name and address
of person authorized to receive notices
and communications from the Securities and Exchange Commission
Dr. Jean A.W.
Schreurs
60 High Tech Campus
5656 AG Eindhoven The Netherlands
This report contains the quarterly report of NXP B.V. (the Company) for the three months ended September 30, 2007, as furnished to the holders of the Companys debt securities on October 30, 2007. This report also contains a copy of the press release entitled NXP Semiconductors Announces Third Quarter 2007 Results, dated October 30, 2007.
Exhibits
1. Quarterly report of NXP Semiconductors Group
2. Press release, dated October 30, 2007
2
Forward-looking statements
This document includes forward-looking statements which include statements regarding our business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions, our ability to successfully introduce new technologies and products, the demand for the goods into which our products are incorporated, our ability to generate sufficient cash or raise sufficient capital to meet both our debt service and research and development and capital investment requirements, our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers, our access to production from third-party outsourcing partners, and any events that might affect their business or our relationship with them, our ability to secure adequate and timely supply of equipment and materials from suppliers, our ability to avoid operational problems and product defects and, if such issues were to arise, to rectify them quickly, our ability to form strategic partnerships and joint ventures and successfully cooperate with our alliance partners, our ability to win competitive bid selection processes to develop products for use in our customers equipment and products, our ability to successfully establish a brand identity, our ability to successfully hire and retain key management and senior product architects; and, our ability to maintain good relationships with our suppliers.
Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, we do not have any intention or obligation to update forward-looking statements after we distribute this document. In addition, this document contains information concerning the semiconductor industry, our market segments and business units generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our market segments and product areas will develop. We have based these assumptions on information currently available to us, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While we do not know what impact any such differences may have on our business, if there are such differences, our future results of operations and financial condition, and the market price of the notes, could be materially adversely affected.
Use of non-US GAAP information
In presenting and discussing the NXP Groups financial position, operating results and cash flows, management uses certain non-US GAAP financial measures.These non-US GAAP financial measures should not be viewed in isolation as alternatives to the equivalent US GAAP measure(s) and should be used in conjunction with the most directly comparable US GAAP measure(s)
A discussion of the non-US GAAP measures included in this document and a reconciliation of such measures to the most directly comparable US GAAP measure(s) are contained in this document.
Use of fair value measurements
In presenting the NXP Groups financial position, fair values are used for the measurement of various items in accordance with the applicable accounting standards. These fair values are based on market prices, where available, and are obtained from sources that we consider to be reliable. Users are cautioned that these values are subject to changes over time and are only valid as of the balance sheet date. When a readily determinable market value does not exist, we estimate fair values using valuation models which we believe are appropriate for their purpose. These require management to make significant assumptions with respect to future developments which are inherently uncertain and may therefore deviate from actual developments. In certain cases independent valuations are obtained to support managements determination of fair values.
Quarterly report of the NXP Group
for the 3rd quarter ended September 30, 2007
NXP announces sequential adjusted EBITDA rises to EUR 226 million
o Third quarter sales at EUR 1,211 million compared to EUR 1,141 million in the second quarter of 2007
o Comparable sequential sales growth of 7.4% (nominal growth 6.1%), comparable year-on-year decrease of 2.8%
o Third quarter adjusted EBITDA, excluding effects of Purchase Price Accounting, at EUR 226 million (adjusted EBITA at EUR 97 million)
o Cash position increased to EUR 681 million at end of the third quarter compared to EUR 514 million at the end of the second quarter of 2007
o Cordless & VoIP Terminal operations exited as per the end of August
o Book-to-bill ratio of 1.01 in third quarter
o Factory loading increases to 85% in the third quarter from 74% in the second quarter and 69% in the first quarter of 2007
Frans van Houten, President and CEO of NXP:
Against a background of continuing soft industry conditions, NXP has performed in line with our expectations. The improvements in Mobile and Personal continue with the group announcing the shipment of its 500 millionth AERO RF transceiver to the mobile handset market, reflecting the successful integration of the wireless operations of Silicon Labs acquired earlier in the year. The third quarter also witnessed a good performance from Multimarket Semiconductors and stabilization in the Home Business Unit after a series of challenging quarters. The Home group won some notable clients, particularly in the area of Digital TV with three leading television manufacturers of which the impact will become visible in the course of 2008. The Automotive business gained market share and the Identification business slowed in line with the industry as a whole.
The improved results in the third quarter can be attributed to normal seasonal sales growth leading to improved factory loading, as well as the impact of our Business Renewal Program, where we are well on our way to realize the EUR 100 million savings on a run rate basis by the end of 2007. Our active portfolio management program continued in particular with the divestment of the Cordless and VoIP Terminal operations. In addition we had a successful start of the assembly and test joint venture with ASE (called ASEN) in Suzhou, China, executing on our asset-light strategy.
|
Table of Contents
|
|
Page |
|
|
|
Introduction |
|
3 |
|
|
|
Report on the performance of the NXP Group: |
|
|
Third quarter 2007 compared to third quarter 2006 |
|
4 |
Group performance |
|
4 |
Performance by segment |
|
7 |
Third quarter 2007 compared to second quarter 2007 |
|
10 |
First nine months 2007 compared to first nine months 2006 |
|
11 |
Liquidity and capital resources |
|
12 |
Outlook |
|
12 |
|
|
|
Group Financial Statements: |
|
|
Combined and Consolidated statements of operations |
|
13 |
Combined and Consolidated balance sheets |
|
14 |
Combined and Consolidated statements of cash flows |
|
15 |
Consolidated statements of changes in shareholders equity and comprehensive income (loss) |
|
16 |
Information by segments |
|
17 |
Main countries |
|
18 |
Reconciliation of non-US GAAP information |
|
19 |
Supplemental Guarantor information |
|
21 |
Quarterly statistics |
|
24 |
2
Introduction
On September 29, 2006, Koninklijke Philips Electronics N.V. (Philips) sold 80.1% of its semiconductors businesses to a consortium of private equity investors (the Private Equity Consortium). These semiconductor businesses were transferred to NXP B.V. (NXP or the Company), a wholly-owned subsidiary of Philips, on September 28, 2006. All of NXPs issued and outstanding shares were then acquired by KASLION Acquisition B.V. (KASLION), which was formed as an acquisition vehicle by the Private Equity Consortium and Philips. This transaction is referred to as the Acquisition. In order to fund the acquisition of NXP by KASLION, the Private Equity Consortium and Philips contributed cash to KASLION in exchange for 80.1% and 19.9%, respectively, of the total equity of KASLION.
As a result of the Acquisition, the financial statements are presented on a Predecessor and Successor basis: the predecessor periods reflect the combined financial results of NXP prior to the Acquisition. The successor periods reflect the consolidated financial results since the Acquisition. The Company also refers to the operations of NXP for both the predecessor and successor periods as NXP Semiconductors Group.
Basis of Presentation
The combined and consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP), which are presented in footnote 3 of our Annual Report 2006.
Predecessor period
The combined financial statements of the Company have been derived from the consolidated financial statements and accounting records of Philips prior to the Acquisition, principally using the historical results of operations and the historical basis of assets and liabilities of the semiconductor businesses. The combined financial statements include an allocation of the costs of certain corporate functions historically provided by Philips but not recorded by its semiconductors businesses. Additionally, the combined financial statements include allocated cash, debt and related interest income and expense, which have not been historically reported by Philips semiconductors businesses. Furthermore, the combined financial statements present income taxes calculated on a basis as if the Company had filed a separate income tax return.
The combined financial statements may not necessarily reflect the Companys results of operations, financial position and cash flows in the future or what its results of operations, financial position and cash flows would have been, if the Company had been stand-alone during the predecessor periods.
Since a direct ownership relationship did not exist among the various worldwide entities comprising the Company prior to the legal separation from Philips, Philips net investment in the Company is shown as business equity in lieu of shareholders equity in the combined financial statements for the predecessor period.
Successor period
The consolidated financial statements include the accounts of NXP B.V. and its subsidiaries since the Acquisition. As a result of the purchase accounting applied to the Acquisition, the assets and liabilities reported in the consolidated balance sheet have changed substantially for the successor periods.
3
Third quarter 2007 compared to third quarter 2006
all amounts in millions of euros unless otherwise stated; data included are unaudited
financial reporting in accordance with US GAAP
the impact on the 2007 financial results of the purchase price accounting (purchase price accounting, or PPA) used in connection with the Acquisition and subsequent acquisitions and divestments has been separately provided; financial results are also provided as adjusted to eliminate the impact of these accounting effects. This presentation does not comply with US GAAP, however, the Company believes it provides investors with a useful basis of comparison with prior year results. Also the impact of cost allocations to the predecessor period and the actual stand-alone costs of the successor period have been described, where relevant to the analysis
Earnings before Interest and Taxes (EBIT) as applied by the Company, has the same meaning as income from operations as presented in the accompanying consolidated financial statements
comparable sales growth reflects relative changes in sales between periods adjusted for the effects of foreign currency exchange rate changes, acquisitions and divestments (consolidation changes) and reclassified product lines
currency comparable sales growth reflects relative changes in sales between periods adjusted for the effects of foreign currency exchange rate changes
Group performance
|
|
PREDECESSOR |
|
SUCCESSOR |
|
||||
Operational items |
|
Q3 |
|
Q3 |
|
Effects of |
|
Q3 2007 |
|
Sales |
|
1,282 |
|
1,211 |
|
|
|
1,211 |
|
% nominal growth |
|
3.9 |
|
(5.5 |
) |
|
|
(5.5 |
) |
% comparable growth |
|
15.1 |
|
(2.8 |
) |
|
|
(2.8 |
) |
Gross margin |
|
504 |
|
444 |
|
26 |
|
470 |
|
Selling expenses |
|
(85 |
) |
(68 |
) |
|
|
(68 |
) |
General and administrative expenses |
|
(102 |
) |
(224 |
) |
121 |
|
(103 |
) |
Research and development expenses |
|
(257 |
) |
(240 |
) |
|
|
(240 |
) |
Other income |
|
6 |
|
86 |
|
|
|
86 |
|
EBIT |
|
66 |
|
(2 |
) |
147 |
|
145 |
|
|
|
|
|
|
|
|
|
|
|
EBITA |
|
56 |
|
109 |
|
26 |
|
135 |
|
EBITDA |
|
203 |
|
264 |
|
|
|
264 |
|
Adjusted EBITA |
|
120 |
|
71 |
|
26 |
|
97 |
|
Adjusted EBITDA |
|
267 |
|
226 |
|
|
|
226 |
|
|
|
|
|
|
|
|
|
|
|
Employees in FTE |
|
38,144 |
|
38,116 |
|
|
|
38,116 |
|
Sales
Sales were EUR 1,211 million for the period July through September 2007 (the reporting period), compared to EUR 1,282 million for the 3rd quarter of 2006, a nominal decrease of 5.5% and a decrease of 2.8% on a comparable basis. Currency movements had a negative effect of 4.2%. Sales increased in Mobile & Personal (5.3% comparable growth), Automotive & Identification (9.0% comparable growth). Home decreased by 22.3% compared to the 3rd quarter of 2006, mainly caused by the continued CRT market decline. MultiMarket Semiconductors decreased by 4.4%.
Exited product lines were mainly Cordless & VoIP Terminal operations, DVD-R, mobile display drivers, large display drivers and PA-FM.
4
Gross margin
Excluding the effects of PPA, gross margin in the 3rd quarter of 2007 amounted to EUR 470 million, a decrease of EUR 34 million, compared to EUR 504 million in the 3rd quarter of 2006. This decrease was caused mainly by lower sales. Incidental items had a negative impact of EUR 6 million in total of which EUR 3 million restructuring charges, versus EUR 28 million in the 3rd quarter 2006 including EUR 6 million for restructuring. Excluding these incidental items, gross margin decreased from 41.5% to 39.3%. Utilization of our manufacturing base was slightly higher compared to last year (85% in the 3rd quarter of 2007 versus 84% in the corresponding quarter of 2006).
The financial impact of purchase price accounting for the reporting period was EUR 26 million and was attributable to depreciation of tangible fixed assets.
Selling expenses
Selling expenses as a percentage of sales for the 3rd quarter of 2007 were 5.6% versus 6.6% in the same period of last year. The 3rd quarter 2007 selling expenses were mainly reduced by the effects from our Business Renewal program .
General and administrative expenses
Excluding the PPA effects, general and administrative (G&A) expenses amounted to EUR 103 million (8.5% of sales), compared to EUR 102 million (8.0% of sales) in the 3rd quarter of 2006. G&A expenses in the reporting period included restructuring and IT disentanglement charges of EUR 16 million compared to EUR 10 million in the corresponding period of 2006.
Excluding restructuring and IT disentanglement charges the G&A expenses declined by EUR 5 million, mainly as a result of our Business Renewal program. This was partly offset by increased pension costs.
PPA effects in G&A amounted to EUR 121 million and were related to amortization of intangible fixed assets.
Research and development expenses
Research and development expenses (R&D) amounted to EUR 240 million (19.8% of sales) compared to EUR 257 million (20.0% of sales) for the 3rd quarter of 2006. The lower investments in R&D were mainly driven by reduced spending in the Crolles2 alliance and resulting from exited product lines.
Other income
For the reporting period, other income amounted to EUR 86 million, primarily consisting of the gain of EUR 87 million related to the divestment of the Cordless & VoIP Terminal operations. Other income totaled EUR 6 million in the corresponding period of 2006.
EBIT
Excluding PPA effects of EUR 147 million, EBIT amounted to a profit of EUR 145 million. This compares to a profit of EUR 66 million in the third quarter of 2006. The higher EBIT in the reporting period included amongst others the gain on the divestment of the Cordless & VoIP Terminal operations, restructuring charges of EUR 7 million and EUR 28 million for IT disentanglement and incidentals. In the 3rd quarter of 2006 the incidental charges totaled EUR 38 million including EUR 6 million for restructuring. Excluding these incidental items, EBIT in the reporting period was a profit of EUR 93 million compared to a profit of EUR 104 million in the 3rd quarter of 2006.
Adjusted EBITA
Excluding the PPA effects, adjusted EBITA amounted to EUR 97 million, compared to EUR 120 million for the third quarter in 2006. Next to the adjustments mentioned in the adjusted EBITDA the difference of EUR 23 million is mainly explained by the lower EBIT.
5
Adjusted EBITDA
Adjusted EBITDA amounted to EUR 226 million, compared to EUR 267 million in the third quarter of 2006. This decrease of EUR 41 million was mainly caused by a lower gross margin in the reporting period.
To arrive at adjusted EBITDA of EUR 226 million in the third quarter of 2007, the following adjustments amounting to EUR 38 million to EBITDA were made:
minority interests and results of unconsolidated companies of EUR 15 million negative, and
restructuring costs of EUR 7 million and legal disentanglement related costs of EUR 13 million, and
other items totaled EUR 73 million positively including amongst others the EUR 87 million gain related to the Cordless & VoIP Terminal divestment and several other items loss of EUR 14 million.
The corresponding EBITDA adjustments in the 3rd quarter of 2006 totaled EUR 64 million negative, consisting of minority interests and results of unconsolidated companies (EUR 14 million), exited product lines (EUR 12 million) restructuring costs (EUR 6 million) and other items (EUR 32 million).
Net income
|
|
PREDECESSOR |
|
SUCCESSOR |
|
||||
|
|
Q3 |
|
Q3 |
|
Effects of |
|
Q3 excl. |
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
66 |
|
(2 |
) |
147 |
|
145 |
|
Financial income (expense) |
|
(4 |
) |
39 |
|
|
|
39 |
|
Income tax (expense benefit) |
|
(21 |
) |
(29 |
) |
(8 |
) |
(37 |
) |
Result unconsolidated companies |
|
|
|
(4 |
) |
|
|
(4 |
) |
Minority interest |
|
(14 |
) |
(11 |
) |
|
|
(11 |
) |
Net income (loss) |
|
27 |
|
(7 |
) |
139 |
|
132 |
|
Net financial income and expense amounted to EUR 39 million positive and included a profit of EUR 120 million as a result of currency exchange rates, predominantly related to our USD denominated notes. Net interest expense amounted to EUR 82 million. Net financial income and expense for the corresponding period in 2006 amounted to EUR 4 million negative, mainly consisting of net interest expenses on funding provided by Philips.
Income tax (expense) benefit
Excluding PPA effects the Company recognized an income tax expense of EUR 37 million. For EUR 21 million this was caused by the income tax expense resulting from the divestment of the Cordless & VoIP Terminal operations. For the same period of 2006 income tax expense amounted to EUR 21 million..
The loss of EUR 11 million reflects the share of minority shareholders in the profits of consolidated companies. In the third quarter of 2006, the loss was EUR 14 million. For both periods this was mainly related to the SSMC joint venture.(currently 61.2% versus 50.5% last year).
6
Performance by segment
Mobile & Personal
Key data |
|
Q3 |
|
Q3 |
|
Q3 2007 |
|
Sales |
|
411 |
|
429 |
|
429 |
|
% nominal growth |
|
(0.2 |
) |
4.4 |
|
4.4 |
|
% comparable growth |
|
3.7 |
|
5.3 |
|
5.3 |
|
EBIT |
|
15 |
|
50 |
|
95 |
|
EBITA |
|
15 |
|
93 |
|
95 |
|
Sales amounted to EUR 429 million compared to EUR 411 million for the third quarter of 2006, a nominal increase of 4.4% (5.3% on a comparable basis). Cordless & VoIP Terminal operations have been included until the end of August. Stronger sales in Cellular Systems and Sound Solutions were partly offset by lower sales in Connected Entertainment.
Excluding the PPA effects, EBIT was a profit of EUR 95 million (including the gain on the divestment of the Cordless & VoIP Terminal operations of EUR 87 million). This compares to a profit of EUR 15 million in the third quarter of 2006. EBIT was affected by ongoing price erosion, especially in Connected Entertainment, which was not fully compensated by cost reductions. Selling and G&A expenses were reduced compared to the third quarter last year.
Home
Key data |
|
Q3 |
|
Q3 |
|
Q3 2007 |
|
Sales |
|
246 |
|
178 |
|
178 |
|
% nominal growth |
|
(10.5 |
) |
(27.6 |
) |
(27.6 |
) |
% comparable growth |
|
7.1 |
|
(22.3 |
) |
(22.3 |
) |
EBIT |
|
(15 |
) |
(44 |
) |
(23 |
) |
EBITA |
|
(15 |
) |
(24 |
) |
(23 |
) |
Sales amounted to EUR 178 million, compared to EUR 246 million in the third quarter of 2006, a decrease of 27.6% (22.3% decline on a comparable basis). This negative development was primarily driven by the continued decline in the CRT TV-market, weak sales in Digital TV and our exit from the DVD-R market & Large Display Drivers (LDD).
Excluding PPA effects, EBIT (including EUR 3 million restructuring costs) amounted to a loss of EUR 23 million, compared to a loss of EUR 15 million in the same period last year. Next to the lower sales level the decline in EBIT is primarily related to our ongoing R&D investments in Digital TV and Set Top Boxes.
7
Automotive & Identification
Key data |
|
Q3 |
|
Q3 |
|
Q3 2007 |
|
Sales |
|
214 |
|
242 |
|
242 |
|
% nominal growth |
|
21.6 |
|
13.1 |
|
13.1 |
|
% comparable growth |
|
23.4 |
|
9.0 |
|
9.0 |
|
EBIT |
|
46 |
|
29 |
|
57 |
|
EBITA |
|
46 |
|
53 |
|
54 |
|
Sales amounted to EUR 242 million, compared with EUR 214 million in the third quarter of 2006, an increase of 13.1% (9.0% increase on a comparable basis). The automotive operations showed solid growth in the quarter, while the market share of our identification operations remained stable in an overall slowing down market. Nominal sales were positively impacted by the reclassification of our sensor operations from the MultiMarket Semiconductors business to the Automotive & Identification business in the second quarter.
Excluding PPA effects, EBIT amounted to EUR 57 million, an improvement of EUR 11 million compared to the third quarter of 2006 primarily as a result of higher sales. Furthermore an amount of approximately EUR 6 million was included as a compensation for our contribution of development efforts in a joint venture in the area of secure contactless mobile chips.
MultiMarket Semiconductors
Key data |
|
Q3 |
|
Q3 |
|
Q3 2007 |
|
Sales |
|
347 |
|
302 |
|
302 |
|
% nominal growth |
|
8.8 |
|
(13.0 |
) |
(13.0 |
) |
% comparable growth |
|
27.9 |
|
(4.4 |
) |
(4.4 |
) |
EBIT |
|
71 |
|
33 |
|
62 |
|
EBITA |
|
71 |
|
59 |
|
62 |
|
Sales amounted to EUR 302 million compared to EUR 347 million in the third quarter of 2006, a decrease of 13.0% (4.4% decrease on comparable basis). This negative nominal growth relates to the discontinuation of the mobile display drivers product line and power rectifiers, and the reclassification of the automotive sensor operations to Automotive & Identification in the second quarter.
Excluding PPA effects, EBIT amounted to EUR 62 million compared to EUR 71 million for the third quarter of 2006. The weaker performance in Power Management and Standard ICs was partly compensated by strong operational performance in General Applications.
8
IC Manufacturing Operations
Key data |
|
Q3 |
|
Q3 |
|
Q3 2007 |
|
Sales (1) |
|
44 |
|
37 |
|
37 |
|
% nominal growth |
|
12.8 |
|
(15.9 |
) |
(15.9 |
) |
% comparable growth |
|
18.3 |
|
(28.2 |
) |
(28.2 |
) |
EBIT |
|
(22 |
) |
(8 |
) |
16 |
|
EBITA |
|
(22 |
) |
(3 |
) |
16 |
|
(1) Excluding internal supplies to other Business Units.
Sales decreased to EUR 37 million from EUR 44 million in the third quarter of 2006. This mainly reflects the lower sales of SSMC to TSMC.
Excluding PPA effects, EBIT amounted to EUR 16 million, compared to a loss of EUR 22 million in the third quarter in 2006. Cost savings contributed considerably to the improved EBIT level.
The utilization rate was 85.3% versus 83.8% in the third quarter of 2006.
Crolles2 alliance showed a loss of EUR 11 million compared to a loss of EUR 14 million in the third quarter of 2006. This loss excludes R&D-related expenses for the reporting period which are reported under Corporate and Other.
Corporate and Other
Key data |
|
Q3 |
|
Q3 |
|
Q3 2007 |
|
Sales |
|
20 |
|
23 |
|
23 |
|
% nominal growth |
|
66.7 |
|
15.0 |
|
15.0 |
|
% comparable growth |
|
74.8 |
|
22.1 |
|
22.1 |
|
EBIT |
|
(29 |
) |
(62 |
) |
(62 |
) |
EBITA |
|
(39 |
) |
(69 |
) |
(69 |
) |
EBIT comprises mainly the costs of corporate overhead and amounted to a loss of EUR 62 million for the 3rd quarter of 2007 compared to a loss of EUR 29 million in the third quarter of 2006.
The increased loss mainly reflects incidental costs of EUR 20 million of which EUR 13 million is related to the IT disentanglement from Philips and EUR 6 million to R&D expenses in the Crolles2 alliance.
9
Third quarter 2007 compared to second quarter 2007
Key data |
|
Q2 2007 |
|
Q3 2007 |
|
Q2 2007 |
|
Q3 2007 |
|
Sales |
|
1,141 |
|
1,211 |
|
1,141 |
|
1,211 |
|
% nominal growth* |
|
2.3 |
|
6.1 |
|
2.3 |
|
6.1 |
|
% comparable growth* |
|
1.8 |
|
7.4 |
|
1.8 |
|
7.4 |
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
(252 |
) |
(2 |
) |
(117 |
) |
145 |
|
as a % of sales |
|
(22.1 |
) |
(0.2 |
) |
(10.3 |
) |
12.0 |
|
EBITA |
|
(149 |
) |
109 |
|
(120 |
) |
135 |
|
EBITDA |
|
12 |
|
264 |
|
14 |
|
264 |
|
Adjusted EBITA |
|
(22 |
) |
71 |
|
7 |
|
97 |
|
Adjusted EBITDA |
|
139 |
|
226 |
|
141 |
|
226 |
|
* sequential growth
Sales
Sales amounted to EUR 1,211 million for the reporting period compared to EUR 1,141 million for the second quarter of 2007, a nominal increase of 6.1%. On a comparable basis the increase was 7.4%. The comparable growth mainly reflects the normal seasonal pattern in sales. The sales of our Mobile & Personal business showed a comparable growth of 11.2%, the Home business and MultiMarket Semiconductors business increased by 13.3% and 7.0%, respectively. The Automotive & Identification business showed a negative comparable growth of 1.6%.
EBIT
Excluding PPA effects, EBIT amounted to a profit of EUR 145 million in the 3rd quarter of 2007 compared to a loss of EUR 117 million in the second quarter of 2007. EBIT in the reporting period included a gain of EUR 87 million from the divestment of the Cordless & VoIP Terminal operations, restructuring charges of EUR 7 million and incidental charges of EUR 27 million. The second quarter EBIT loss of EUR 117 million included restructuring charges of EUR 97 million and other incidental charges of EUR 17 million.
10
First nine months 2007 compared to first nine months 2006
|
|
January-September |
|
||||||
|
|
PREDECESSOR |
|
SUCCESSOR |
|
||||
Key data |
|
2006 |
|
2006 |
|
2007 |
|
2007 |
|
Sales |
|
3,770 |
|
3,770 |
|
3,467 |
|
3,467 |
|
% nominal growth |
|
10.6 |
|
10.6 |
|
(8.0 |
) |
(8.0 |
) |
% comparable growth |
|
16.9 |
|
16.9 |
|
(2.2 |
) |
(2.2 |
) |
|
|
|
|
|
|
|
|
|
|
EBIT |
|
139 |
|
139 |
|
(476 |
) |
(23 |
) |
as a % of sales |
|
3.7 |
|
3.7 |
|
(13.7 |
) |
(0.7 |
) |
Financial income (expense) |
|
(22 |
) |
(22 |
) |
(107 |
) |
(107 |
) |
Income tax (expense) benefit |
|
(65 |
) |
(65 |
) |
72 |
|
48 |
|
Result unconsolidated companies |
|
3 |
|
3 |
|
(5 |
) |
(5 |
) |
Minority interest |
|
(50 |
) |
(50 |
) |
(23 |
) |
(23 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
5 |
|
5 |
|
(539 |
) |
(110 |
) |
EBITA |
|
111 |
|
111 |
|
(116 |
) |
(36 |
) |
EBITDA |
|
563 |
|
563 |
|
361 |
|
363 |
|
Adjusted EBITA |
|
255 |
|
255 |
|
27 |
|
107 |
|
Adjusted EBITDA |
|
707 |
|
707 |
|
504 |
|
506 |
|
Sales
Sales amounted to EUR 3,467 million for the period January through September 2007, compared to EUR 3,770 million for the corresponding period in 2006, a decrease of 8.0% (on a comparable basis the decrease was 2.2%). This decrease in sales primarily relates to our Home business. This decline was only partly offset by the growth in our Automotive & Identification business.
EBIT
Excluding PPA effects, EBIT amounted to a loss of EUR 23 million for the period January through September 2007, compared to a profit of EUR 139 million in the first nine months of 2006. EBIT in the first nine months included restructuring charges of EUR 134 million and incidental charges of EUR 63 million. The EBIT in the corresponding period of 2006 amounted to EUR 139 million and included restructuring charges of EUR 17 million and incidental charges of EUR 45 million. In addition the contribution margin was negatively impacted by weaker sales and lower utilization rates of our manufacturing facilities (77.8% in the first nine months of 2007 compared to 85.0% in the corresponding period of 2006)
11
Liquidity and capital resources
At the end of the 3rd quarter of 2007 cash and cash equivalents amounted to EUR 681 million, compared to EUR 514 million at the end of the 2nd quarter of 2007. Net cash provided by operating activities in the reporting period was EUR 202 million. Reconciling net income to net cash provided by operating activities, EUR 120 million representing currency exchange profits were eliminated under other items. The cash proceeds from the sale of businesses, mainly Cordless & VoIP Terminal operations, amounted to EUR 128 million. Capital expenditures in the reporting period were EUR 108 million. Investments in various businesses consumed EUR 11 million.
Outlook
The market remains soft and visibility remains short. Given NXPs book-to-bill ratio of 1.01 in the third quarter, the Company expects low single digit sequential sales growth for the fourth quarter 2007 on a currency comparable basis.
Eindhoven, October 30, 2007
Board of Management
12
Combined and Consolidated statements of operations
all amounts in millions of euros
|
|
|
PREDECESSOR |
|
SUCCESSOR |
|
PREDECESSOR |
|
SUCCESSOR |
|
|
|
|
|
3rd quarter |
|
January to September |
|
||
|
|
2006 |
|
2007 |
|
2006 |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
1,262 |
|
1,203 |
|
3,702 |
|
3,435 |
|
Sales to Philips companies |
|
20 |
|
8 |
|
68 |
|
32 |
|
Total sales |
|
1,282 |
|
1,211 |
|
3,770 |
|
3,467 |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(778 |
) |
(767 |
) |
(2,331 |
) |
(2,416 |
) |
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
504 |
|
444 |
|
1,439 |
|
1,051 |
|
|
|
|
|
|
|
|
|
|
|
Selling expenses |
|
(85 |
) |
(68 |
) |
(275 |
) |
(237 |
) |
|
(102 |
) |
(224 |
) |
(306 |
) |
(653 |
) |
|
Research and development expenses |
|
(257 |
) |
(240 |
) |
(737 |
) |
(722 |
) |
Write-off of acquired in-process research and development |
|
|
|
|
|
|
|
(11 |
) |
Other income (expense) |
|
6 |
|
86 |
|
18 |
|
96 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
66 |
|
(2 |
) |
139 |
|
(476 |
) |
|
|
|
|
|
|
|
|
|
|
Financial income (expense) |
|
(4 |
) |
39 |
|
(22 |
) |
(107 |
) |
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes |
|
62 |
|
37 |
|
117 |
|
(583 |
) |
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
(21 |
) |
(29 |
) |
(65 |
) |
72 |
|
|
|
|
|
|
|
|
|
|
|
Income (loss) after taxes |
|
41 |
|
8 |
|
52 |
|
(511 |
) |
|
|
|
|
|
|
|
|
|
|
Results relating to unconsolidated companies |
|
|
|
(4 |
) |
3 |
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
Minority interests |
|
(14 |
) |
(11 |
) |
(50 |
) |
(23 |
) |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
27 |
|
(7 |
) |
5 |
|
(539 |
) |
13
Combined and Consolidated balance sheets
all amounts in millions of euros
|
|
|
PREDECESSOR |
|
SUCCESSOR |
|
||
|
|
September 28, |
|
December 31, |
|
September 30, |
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
159 |
|
939 |
|
681 |
|
Receivables |
|
683 |
|
563 |
|
627 |
|
Inventories |
|
710 |
|
646 |
|
618 |
|
Other current assets |
|
96 |
|
125 |
|
149 |
|
Total current assets |
|
1,648 |
|
2,273 |
|
2,075 |
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
Investments in unconsolidated companies |
|
53 |
|
44 |
|
61 |
|
Other non-current financial assets |
|
9 |
|
12 |
|
52 |
|
Non-current receivables |
|
|
|
|
|
1 |
|
Other non-current assets |
|
140 |
|
157 |
|
261 |
|
Property, plant and equipment |
|
1,969 |
|
2,284 |
|
1,990 |
|
Intangible assets excluding goodwill |
|
54 |
|
3,065 |
|
2,707 |
|
Goodwill |
|
200 |
|
2,032 |
|
2,231 |
|
Total non-current assets |
|
2,425 |
|
7,594 |
|
7,303 |
|
|
|
|
|
|
|
|
|
Total assets |
|
4,073 |
|
9,867 |
|
9,378 |
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts and notes payable |
|
486 |
|
489 |
|
621 |
|
Accrued liabilities |
|
634 |
|
485 |
|
724 |
|
Short-term provisions |
|
59 |
|
54 |
|
39 |
|
Other current liabilities |
|
30 |
|
45 |
|
31 |
|
Short-term debt |
|
18 |
|
23 |
|
4 |
|
Loans with Philips companies, current portion |
|
518 |
|
|
|
|
|
Total current liabilities |
|
1,745 |
|
1,096 |
|
1,419 |
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
Long-term debt |
|
11 |
|
4,426 |
|
4,228 |
|
Loans with Philips companies, non-current portion |
|
23 |
|
|
|
|
|
Long-term provisions |
|
91 |
|
368 |
|
378 |
|
Other non-current liabilities |
|
18 |
|
130 |
|
120 |
|
Total non-current liabilities |
|
143 |
|
4,924 |
|
4,726 |
|
|
|
|
|
|
|
|
|
Minority interests |
|
208 |
|
162 |
|
171 |
|
Business equity |
|
1,977 |
|
|
|
|
|
Shareholders equity |
|
|
|
3,685 |
|
3,062 |
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
4,073 |
|
9,867 |
|
9,378 |
|
14
Combined and Consolidated statements of cash flows
all amounts in millions of euros
|
|
|
PREDECESSOR |
|
SUCCESSOR |
|
PREDECESSOR |
|
SUCCESSOR |
|
|
|
|
|
3rd quarter |
|
January to September |
|
||
|
|
2006 |
|
2007 |
|
2006 |
|
2007 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
27 |
|
(7 |
) |
5 |
|
(539 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
151 |
|
281 |
|
471 |
|
865 |
|
Net gain on sale of assets |
|
(1 |
) |
(83 |
) |
(7 |
) |
(87 |
) |
Results relating to unconsolidated companies |
|
|
|
4 |
|
(3 |
) |
5 |
|
Minority interests (net of dividends paid to minority shareholders) |
|
14 |
|
11 |
|
50 |
|
21 |
|
Decrease (increase) in receivables and other current assets |
|
(82 |
) |
(35 |
) |
(131 |
) |
(113 |
) |
Decrease (increase) in inventories |
|
(22 |
) |
(28 |
) |
(68 |
) |
7 |
|
Increase (decrease) in accounts payable, accrued and other liabilities |
|
26 |
|
172 |
|
154 |
|
370 |
|
Decrease (increase) in current accounts Philips |
|
(48 |
) |
|
|
(25 |
) |
|
|
Decrease (increase) in non-current receivables/other assets |
|
(65 |
) |
19 |
|
(24 |
) |
(105 |
) |
Increase (decrease) in provisions |
|
51 |
|
(12 |
) |
33 |
|
|
|
Other items |
|
2 |
|
(120 |
) |
13 |
|
(149 |
) |
Net cash provided by (used for) operating activities |
|
53 |
|
202 |
|
468 |
|
275 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Purchase of intangible assets |
|
(4 |
) |
(17 |
) |
(12 |
) |
(23 |
) |
Capital expenditures on property, plant and equipment |
|
(187 |
) |
(108 |
) |
(465 |
) |
(276 |
) |
Proceeds from disposals of property, plant and equipment |
|
18 |
|
11 |
|
26 |
|
29 |
|
Purchase of other non-current financial assets |
|
(3 |
) |
(1 |
) |
(3 |
) |
(1 |
) |
Proceeds from the sale of other non-current financial assets |
|
|
|
2 |
|
|
|
2 |
|
Purchase of interest in businesses |
|
|
|
(11 |
) |
(3 |
) |
(325 |
) |
Proceeds from the sale of businesses |
|
|
|
128 |
|
|
|
128 |
|
Net cash provided by (used for) investing activities |
|
(176 |
) |
4 |
|
(457 |
) |
(466 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
PREDECESSOR |
|
|
|
|
|
|
|
|
|
(Decrease) increase in debt |
|
(213 |
) |
|
|
(322 |
) |
|
|
Net repayments of loans to Philips companies |
|
(6 |
) |
|
|
(497 |
) |
|
|
Net changes in Business equity |
|
321 |
|
|
|
867 |
|
|
|
SUCCESSOR |
|
|
|
|
|
|
|
|
|
(Decrease) increase in debt |
|
|
|
|
|
|
|
(14 |
) |
Net cash provided by (used for) financing activities |
|
102 |
|
|
|
48 |
|
(14 |
) |
Effect of changes in exchange rates on cash positions |
|
(2 |
) |
(39 |
) |
(10 |
) |
(53 |
) |
Increase (decrease) in cash and cash equivalents |
|
(23 |
) |
167 |
|
49 |
|
(258 |
) |
Cash and cash equivalents at beginning of period |
|
182 |
|
514 |
|
110 |
|
939 |
|
Cash and cash equivalents at end of period |
|
159 |
|
681 |
|
159 |
|
681 |
|
15
Consolidated statements of changes in
shareholders equity and comprehensive income (loss)
all amounts in millions of euros
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUCCESSOR |
|
||||||||||||||
|
|
January to September 2007 |
|
||||||||||||||
|
|
|
|
|
|
|
|
Accumulated other comprehensive income (loss) |
|
|
|
||||||
|
|
Common |
|
Capital in |
|
Retained earnings |
|
Currency translation differences |
|
Unrealized gain (loss) on |
|
Changes in |
|
Total |
|
Total share- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2006 |
|
|
|
4,305 |
|
(616 |
) |
(10 |
) |
|
|
6 |
|
(4 |
) |
3,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
|
|
|
(539 |
) |
|
|
|
|
|
|
|
|
(539 |
) |
Current period change |
|
|
|
|
|
|
|
(82 |
) |
(6 |
) |
5 |
|
(83 |
) |
(83 |
) |
Reclassifications into income (loss) |
|
|
|
|
|
|
|
1 |
|
|
|
(2 |
) |
(1 |
) |
(1 |
) |
Total comprehensive income (loss), net of tax |
|
|
|
|
|
(539 |
) |
(81 |
) |
(6 |
) |
3 |
|
(84 |
) |
(623 |
) |
Balance as of September 30, 2007 |
|
|
|
4,305 |
|
(1,155 |
) |
(91 |
) |
(6 |
) |
9 |
|
(88 |
) |
3,062 |
|
16
Information by segments
all amounts in millions of euros unless otherwise stated
Sales, R&D expenses and income from operations |
|
|
|
PREDECESSOR |
|
SUCCESSOR |
|
||||||||||||
|
|
3rd quarter |
|
||||||||||||||
|
|
2006 |
|
2007 |
|
||||||||||||
|
|
|
|
Research |
|
|
|
|
|
Research |
|
|
|
||||
|
|
|
|
|
|
amount |
|
as a
% of |
|
|
|
|
|
amount |
|
as a
% of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile & Personal |
|
411 |
|
92 |
|
15 |
|
3.6 |
|
429 |
|
94 |
|
50 |
|
11.7 |
|
Home |
|
246 |
|
47 |
|
(15 |
) |
(6.1 |
) |
178 |
|
49 |
|
(44 |
) |
(24.7 |
) |
Automotive & Identification |
|
214 |
|
34 |
|
46 |
|
21.5 |
|
242 |
|
34 |
|
29 |
|
12.0 |
|
MultiMarket Semiconductors |
|
347 |
|
24 |
|
71 |
|
20.5 |
|
302 |
|
20 |
|
33 |
|
10.9 |
|
IC Manufacturing Operations |
|
44 |
|
23 |
|
(22 |
) |
|
(1) |
37 |
|
9 |
|
(8 |
) |
|
(1) |
Corporate and Other |
|
20 |
|
37 |
|
(29 |
) |
|
(1) |
23 |
|
34 |
|
(62 |
) |
|
(1) |
Total |
|
1,282 |
|
257 |
|
66 |
|
5.1 |
|
1,211 |
|
240 |
|
(2 |
) |
(0.2 |
) |
|
|
|
||||||||||||||||||||||
|
|
PREDECESSOR |
|
SUCCESSOR |
|
|
|||||||||||||||||
|
|
January to September |
|
|
|||||||||||||||||||
|
|
2006 |
|
2007 |
|
||||||||||||||||||
|
|
|
|
Research |
|
|
|
|
|
Research |
|
|
|
||||||||||
|
|
|
|
|
|
amount |
|
as a
% of |
|
|
|
|
|
amount |
|
as a
% of |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mobile & Personal |
|
1,172 |
|
280 |
|
23 |
|
2.0 |
|
1,173 |
|
282 |
|
(77 |
) |
(6.6 |
) |
||||||
Home |
|
730 |
|
146 |
|
(37 |
) |
(5.1 |
) |
513 |
|
138 |
|
(128 |
) |
(25.0 |
) |
||||||
Automotive & Identification |
|
662 |
|
92 |
|
151 |
|
22.8 |
|
739 |
|
109 |
|
88 |
|
11.9 |
|
||||||
MultiMarket Semiconductors |
|
1,017 |
|
67 |
|
203 |
|
20.0 |
|
886 |
|
63 |
|
88 |
|
9.9 |
|
||||||
IC Manufacturing Operations |
|
140 |
(2) |
65 |
|
7 |
|
|
(1) |
103 |
(2) |
23 |
|
174 |
|
|
(1) |
||||||
Corporate and Other |
|
49 |
|
87 |
|
(208 |
) |
|
(1) |
53 |
|
107 |
|
(273 |
) |
|
(1) |
||||||
Total |
|
3,770 |
|
737 |
|
139 |
|
3.7 |
|
3,467 |
|
722 |
|
(476 |
) |
(13.7 |
) |
||||||
(1) Not meaningful
(2) For the nine months ended September 30, 2007, IC Manufacturing Operations supplied EUR 1,346 million to other businesses (for the nine months ended September 28, 2006: EUR 1,599 million), which have been eliminated in the above presentation.
17
Main countries
all amounts in millions of euros
Sales
|
|
PREDECESSOR |
|
SUCCESSOR |
|
|
|
January to September |
|
||
|
|
2006 |
|
2007 |
|
|
|
|
|
|
|
China |
|
853 |
|
685 |
|
Netherlands |
|
606 |
|
560 |
|
Taiwan |
|
270 |
|
288 |
|
United States |
|
380 |
|
297 |
|
Singapore |
|
438 |
|
300 |
|
Germany |
|
196 |
|
216 |
|
South Korea * |
|
312 |
|
381 |
|
Other Countries |
|
715 |
|
740 |
|
Total |
|
3,770 |
|
3,467 |
|
The allocation is based on invoicing organization.
* Singapore Korea branch sales, previously reported under Singapore, have been reclassified to South Korea.
18
Reconciliation of non-US GAAP information
all amounts in millions of euros unless otherwise stated
Certain non-US GAAP financial measures are presented when discussing the NXP Groups financial position. In the following tables, a reconciliation to the most directly comparable US GAAP financial measure is made for each non-US GAAP performance measure.
Sales growth composition (in %)
|
|
Comparable |
|
Currency |
|
Consolidation |
|
Nominal |
|
Q3 2007 versus Q3 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile & Personal |
|
5.3 |
|
(4.9 |
) |
4.0 |
|
4.4 |
|
Home |
|
(22.3 |
) |
(4.9 |
) |
(0.4 |
) |
(27.6 |
) |
Automotive & Identification |
|
9.0 |
|
(2.9 |
) |
7.0 |
|
13.1 |
|
MultiMarket Semiconductors |
|
(4.4 |
) |
(4.1 |
) |
(4.5 |
) |
(13.0 |
) |
IC Manufacturing Operations |
|
(28.2 |
) |
(5.8 |
) |
18.1 |
|
(15.9 |
) |
Corporate and Other |
|
22.1 |
|
(5.8 |
) |
(1.3 |
) |
15.0 |
|
|
|
|
|
|
|
|
|
|
|
NXP Group |
|
(2.8 |
) |
(4.2 |
) |
1.5 |
|
(5.5 |
) |
|
|
Comparable |
|
Currency |
|
Consolidation |
|
Nominal |
|
Q3 2006 versus Q3 2005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile & Personal |
|
3.7 |
|
(4.0 |
) |
0.1 |
|
(0.2 |
) |
Home |
|
7.1 |
|
(4.2 |
) |
(13.4 |
) |
(10.5 |
) |
Automotive & Identification |
|
23.4 |
|
(2.8 |
) |
1.0 |
|
21.6 |
|
MultiMarket Semiconductors |
|
27.9 |
|
(4.1 |
) |
(15.0 |
) |
8.8 |
|
IC Manufacturing Operations |
|
18.3 |
|
(5.5 |
) |
|
|
12.8 |
|
Corporate and Other |
|
74.8 |
|
(8.1 |
) |
|
|
66.7 |
|
|
|
|
|
|
|
|
|
|
|
NXP Group |
|
15.1 |
|
(4.0 |
) |
(7.2 |
) |
3.9 |
|
Adjusted EBITA to EBITA to Net income (loss)
|
|
Q3 |
|
Q3 |
|
|
|
|
|
|
|
Adjusted EBITA |
|
120 |
|
97 |
|
Add back: |
|
|
|
|
|
Exit of product lines |
|
(12 |
) |
|
|
Restructuring costs and impairment |
|
(6 |
) |
(7 |
) |
Minority interest and results of unconsolidated companies |
|
(14 |
) |
(15 |
) |
Other |
|
(32 |
) |
60 |
|
Effects of PPA |
|
|
|
(26 |
) |
|
|
|
|
|
|
EBITA |
|
56 |
|
109 |
|
|
|
|
|
|
|
Include: |
|
|
|
|
|
Amortization intangible assets |
|
(4 |
) |
(126 |
) |
Financial income (expenses) |
|
(4 |
) |
39 |
|
Income tax (expense) benefit |
|
(21 |
) |
(29 |
) |
|
|
|
|
|
|
Net income (loss) |
|
27 |
|
(7 |
) |
19
Reconciliation of non-US GAAP information (continued)
Adjusted EBITDA to EBITDA to Net income (loss)
|
|
Q3 |
|
Q3 |
|
|
|
|
|
|
|
Adjusted EBITDA |
|
267 |
|
226 |
|
Add back: |
|
|
|
|
|
Exit of product lines |
|
(12 |
) |
|
|
Restructuring costs and impairment |
|
(6 |
) |
(7 |
) |
Minority interest and results of unconsolidated companies |
|
(14 |
) |
(15 |
) |
Other |
|
(32 |
) |
60 |
|
Effects of PPA |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
203 |
|
264 |
|
|
|
|
|
|
|
Include: |
|
|
|
|
|
Amortization intangible assets |
|
(4 |
) |
(126 |
) |
Depreciation property, plant and equipment |
|
(147 |
) |
(155 |
) |
Financial income (expenses) |
|
(4 |
) |
39 |
|
Income tax (expense) benefit |
|
(21 |
) |
(29 |
) |
|
|
|
|
|
|
Net income (loss) |
|
27 |
|
(7 |
) |
EBITA to EBIT
|
|
NXP |
|
Mobile & |
|
Home |
|
Automotive & |
|
MultiMarket |
|
IC |
|
Corporate |
|
Q3 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITA |
|
109 |
|
93 |
|
(24 |
) |
53 |
|
59 |
|
(3 |
) |
(69 |
) |
Amortization intangible assets |
|
(126 |
) |
(43 |
) |
(20 |
) |
(27 |
) |
(26 |
) |
(5 |
) |
(5 |
) |
Minority interest and results of unconsolidated companies |
|
15 |
|
|
|
|
|
3 |
|
|
|
|
|
12 |
|
EBIT |
|
(2 |
) |
50 |
|
(44 |
) |
29 |
|
33 |
|
(8 |
) |
(62 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITA |
|
56 |
|
15 |
|
(15 |
) |
46 |
|
71 |
|
(22 |
) |
(39 |
) |
Amortization intangible assets |
|
(4 |
) |
|
|
|
|
|
|
|
|
|
|
(4 |
) |
Minority interest and results of unconsolidated companies |
|
14 |
|
|
|
|
|
|
|
|
|
|
|
14 |
|
EBIT |
|
66 |
|
15 |
|
(15 |
) |
46 |
|
71 |
|
(22 |
) |
(29 |
) |
Composition of net debt to group equity
|
|
December 31, |
|
September 30, |
|
|
|
|
|
|
|
Long-term debt |
|
4,426 |
|
4,228 |
|
Short-term debt |
|
23 |
|
4 |
|
Total debt |
|
4,449 |
|
4,232 |
|
Cash and cash equivalents |
|
(939 |
) |
(681 |
) |
Net debt (total debt less cash and cash equivalents) |
|
3,510 |
|
3,551 |
|
|
|
|
|
|
|
Minority interests |
|
162 |
|
171 |
|
Shareholders equity |
|
3,685 |
|
3,062 |
|
Group equity |
|
3,847 |
|
3,233 |
|
|
|
|
|
|
|
Net debt and group equity |
|
7,357 |
|
6,784 |
|
Net debt divided by net debt and group equity (in %) |
|
48 |
|
52 |
|
Group equity divided by net debt and group equity (in %) |
|
52 |
|
48 |
|
20
Supplemental consolidated
statement of
operations for the period January to September, 2007
all amounts in millions of euros
|
|
|
|
|
|
non-guarantors |
|
eliminations/ reclassifications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
|
|
2,557 |
|
910 |
|
|
|
3,467 |
|
Intercompany sales |
|
|
|
734 |
|
441 |
|
(1,175 |
) |
|
|
Total sales |
|
|
|
3,291 |
|
1,351 |
|
(1,175 |
) |
3,467 |
|
Cost of sales |
|
(82 |
) |
(2,209 |
) |
(1,261 |
) |
1,136 |
|
(2,416 |
) |
Gross margin |
|
(82 |
) |
1,082 |
|
90 |
|
(39 |
) |
1,051 |
|
Selling expenses |
|
|
|
(175 |
) |
(65 |
) |
3 |
|
(237 |
) |
General and administrative expenses |
|
(363 |
) |
(245 |
) |
(47 |
) |
2 |
|
(653 |
) |
Research and development expenses |
|
|
|
(463 |
) |
(294 |
) |
35 |
|
(722 |
) |
Write-off of acquired in-process research and development |
|
(11 |
) |
|
|
|
|
|
|
(11 |
) |
Other income (loss) |
|
(41 |
) |
(235 |
) |
373 |
|
(1 |
) |
96 |
|
Income (loss) from operations |
|
(497 |
) |
(36 |
) |
57 |
|
|
|
(476 |
) |
Financial income and expenses |
|
14 |
|
(111 |
) |
(10 |
) |
|
|
(107 |
) |
Income (loss) before taxes |
|
(483 |
) |
(147 |
) |
47 |
|
|
|
(583 |
) |
Income tax (expense) benefit |
|
25 |
|
63 |
|
(16 |
) |
|
|
72 |
|
Income (loss) after taxes |
|
(458 |
) |
(84 |
) |
31 |
|
|
|
(511 |
) |
Income subsidiaries |
|
(76 |
) |
|
|
|
|
76 |
|
|
|
Results relating to unconsolidated companies |
|
(5 |
) |
|
|
|
|
|
|
(5 |
) |
Minority interests |
|
|
|
|
|
(23 |
) |
|
|
(23 |
) |
Net income (loss) |
|
(539 |
) |
(84 |
) |
8 |
|
76 |
|
(539 |
) |
21
Supplemental consolidated balance sheet at September 30, 2007
all amounts in millions of euros
|
|
|
|
|
|
non-guarantors |
|
eliminations/ reclassifications |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
257 |
|
234 |
|
190 |
|
|
|
681 |
|
Receivables |
|
10 |
|
411 |
|
206 |
|
|
|
627 |
|
Intercompany accounts receivable |
|
92 |
|
894 |
|
138 |
|
(1,124 |
) |
|
|
Inventories |
|
|
|
536 |
|
82 |
|
|
|
618 |
|
Other current assets |
|
41 |
|
71 |
|
37 |
|
|
|
149 |
|
Total current assets |
|
400 |
|
2,146 |
|
653 |
|
(1,124 |
) |
2,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
Investments in unconsolidated companies |
|
52 |
|
5 |
|
4 |
|
|
|
61 |
|
Investments in affiliated companies |
|
2,289 |
|
|
|
|
|
(2,289 |
) |
|
|
Other non-current financial assets |
|
47 |
|
3 |
|
2 |
|
|
|
52 |
|
Non-current receivables |
|
|
|
|
|
1 |
|
|
|
1 |
|
Other non-current assets |
|
79 |
|
161 |
|
21 |
|
|
|
261 |
|
Property, plant and equipment |
|
323 |
|
1,009 |
|
658 |
|
|
|
1,990 |
|
Intangible assets excluding goodwill |
|
2,661 |
|
39 |
|
7 |
|
|
|
2,707 |
|
Goodwill |
|
2,231 |
|
|
|
|
|
|
|
2,231 |
|
Total non-current assets |
|
7,682 |
|
1,217 |
|
693 |
|
(2,289 |
) |
7,303 |
|
Total assets |
|
8,082 |
|
3,363 |
|
1,346 |
|
(3,413 |
) |
9,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders equity |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts and notes payable |
|
|
|
521 |
|
100 |
|
|
|
621 |
|
Intercompany accounts payable |
|
342 |
|
568 |
|
214 |
|
(1,124 |
) |
|
|
Accrued liabilities |
|
235 |
|
335 |
|
154 |
|
|
|
724 |
|
Short-term provisions |
|
|
|
27 |
|
12 |
|
|
|
39 |
|
Other current liabilities |
|
1 |
|
9 |
|
21 |
|
|
|
31 |
|
Short-term debt |
|
|
|
|
|
4 |
|
|
|
4 |
|
Intercompany financing |
|
|
|
2,885 |
|
254 |
|
(3,139 |
) |
|
|
Total current liabilities |
|
578 |
|
4,345 |
|
759 |
|
(4,263 |
) |
1,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
4,220 |
|
3 |
|
5 |
|
|
|
4,228 |
|
Long-term provisions |
|
222 |
|
143 |
|
13 |
|
|
|
378 |
|
Other non-current liabilities |
|
|
|
99 |
|
21 |
|
|
|
120 |
|
Total non-current liabilities |
|
4,442 |
|
245 |
|
39 |
|
|
|
4,726 |
|
Minority interests |
|
|
|
|
|
171 |
|
|
|
171 |
|
Shareholders equity |
|
3,062 |
|
(1,227 |
) |
377 |
|
850 |
|
3,062 |
|
Total liabilities and Shareholders equity |
|
8,082 |
|
3,363 |
|
1,346 |
|
(3,413 |
) |
9,378 |
|
22
Supplemental consolidated statement of cash flows for the period January to September, 2007
all amounts in millions of euros
|
|
|
|
|
|
non-guarantors |
|
|
|
consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(539 |
) |
(84 |
) |
8 |
|
76 |
|
(539 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Elimination (income) loss subsidiaries |
|
76 |
|
|
|
|
|
(76 |
) |
|
|
Depreciation and amortization |
|
450 |
|
234 |
|
181 |
|
|
|
865 |
|
Net gain on sale of assets |
|
(34 |
) |
(45 |
) |
(8 |
) |
|
|
(87 |
) |
Results relating to unconsolidated companies |
|
5 |
|
|
|
|
|
|
|
5 |
|
Minority interests (net of dividends paid to minority shareholders) |
|
|
|
|
|
21 |
|
|
|
21 |
|
Decrease (increase) in receivables and other current assets |
|
(37 |
) |
(78 |
) |
2 |
|
|
|
(113 |
) |
Decrease (increase) in inventories |
|
4 |
|
11 |
|
(8 |
) |
|
|
7 |
|
Increase (decrease) in accounts payable, accrued and other liabilities |
|
136 |
|
209 |
|
25 |
|
|
|
370 |
|
Decrease (increase) intercompany current accounts |
|
113 |
|
(172 |
) |
59 |
|
|
|
|
|
Decrease (increase) in non-current receivables/other assets |
|
3 |
|
(90 |
) |
(18 |
) |
|
|
(105 |
) |
Increase (decrease) in provisions |
|
(24 |
) |
23 |
|
1 |
|
|
|
|
|
Other items |
|
(151 |
) |
2 |
|
|
|
|
|
(149 |
) |
Net cash provided by (used for) operating activities |
|
2 |
|
10 |
|
263 |
|
|
|
275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Purchase of intangible assets |
|
(14 |
) |
(6 |
) |
(3 |
) |
|
|
(23 |
) |
Capital expenditures on property, plant and equipment |
|
|
|
(146 |
) |
(130 |
) |
|
|
(276 |
) |
Proceeds from disposals of property, plant and equipment |
|
|
|
22 |
|
7 |
|
|
|
29 |
|
Purchase of other non-current financial assets |
|
|
|
|
|
(1 |
) |
|
|
(1 |
) |
Proceeds from the sale of other non-current financial assets |
|
|
|
|
|
2 |
|
|
|
2 |
|
Purchase of interest in businesses |
|
(321 |
) |
|
|
(4 |
) |
|
|
(325 |
) |
Proceeds from sale of interests in unconsolidated businesses |
|
78 |
|
43 |
|
7 |
|
|
|
128 |
|
Net cash provided by (used for) investing activities |
|
(257 |
) |
(87 |
) |
(122 |
) |
|
|
(466 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in debt |
|
|
|
4 |
|
(18 |
) |
|
|
(14 |
) |
Net changes in intercompany financing |
|
135 |
|
(53 |
) |
(82 |
) |
|
|
|
|
Net changes in intercompany equity |
|
(225 |
) |
214 |
|
11 |
|
|
|
|
|
Net cash provided by (used for) financing activities |
|
(90 |
) |
165 |
|
(89 |
) |
|
|
(14 |
) |
Effect of changes in exchange rates on cash positions |
|
(11 |
) |
(15 |
) |
(27 |
) |
|
|
(53 |
) |
Increase (decrease) in cash and cash equivalents |
|
(356 |
) |
73 |
|
25 |
|
|
|
(258 |
) |
Cash and cash equivalents at beginning of period |
|
613 |
|
161 |
|
165 |
|
|
|
939 |
|
Cash and cash equivalents at end of period |
|
257 |
|
234 |
|
190 |
|
|
|
681 |
|
23
Quarterly statistics
all amounts in millions of euros unless otherwise stated
|
|
PREDECESSOR |
|
SUCCESSOR |
|
||||||||||||
|
|
|
|
|
|
|
|
2006 |
|
|
|
|
|
|
|
2007 |
|
|
|
1st quarter |
|
2nd quarter |
|
3rd quarter |
|
4th quarter |
|
1st quarter |
|
2nd quarter |
|
3rd quarter |
|
4th quarter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
1,250 |
|
1,238 |
|
1,282 |
|
1,190 |
|
1,115 |
|
1,141 |
|
1,211 |
|
|
|
% increase |
|
19.8 |
|
9.5 |
|
3.9 |
|
(12.4 |
) |
(10.8 |
) |
(7.8 |
) |
(5.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
21 |
|
52 |
|
66 |
|
(779 |
) |
(222 |
) |
(252 |
) |
(2 |
) |
|
|
as a % of sales |
|
1.7 |
|
4.2 |
|
5.1 |
|
(65.5 |
) |
(19.9 |
) |
(22.1 |
) |
(0.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITA |
|
15 |
|
40 |
|
56 |
|
(145 |
) |
(76 |
) |
(149 |
) |
109 |
|
|
|
as a % of sales |
|
1.2 |
|
3.2 |
|
4.4 |
|
(12.2 |
) |
(6.8 |
) |
(13.1 |
) |
9.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
173 |
|
187 |
|
203 |
|
26 |
|
85 |
|
12 |
|
264 |
|
|
|
as a % of sales |
|
13.8 |
|
15.1 |
|
15.8 |
|
2.2 |
|
7.6 |
|
1.1 |
|
21.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA |
|
71 |
|
64 |
|
120 |
|
69 |
|
3 |
|
7 |
|
97 |
|
|
|
as a % of sales |
|
5.7 |
|
5.2 |
|
9.4 |
|
5.8 |
|
0.3 |
|
0.6 |
|
8.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
229 |
|
211 |
|
267 |
|
214 |
|
139 |
|
141 |
|
226 |
|
|
|
as a % of sales |
|
18.3 |
|
17.0 |
|
20.8 |
|
18.0 |
|
12.5 |
|
12.4 |
|
18.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
(17 |
) |
(5 |
) |
27 |
|
(616 |
) |
(266 |
) |
(266 |
) |
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January- March |
|
January- |
|
January- September |
|
January- December |
|
January-March |
|
January- |
|
January- September |
|
January- December |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
1,250 |
|
2,488 |
|
3,770 |
|
4,960 |
|
1,115 |
|
2,256 |
|
3,467 |
|
|
|
% increase |
|
19.8 |
|
14.4 |
|
10.6 |
|
4.1 |
|
(10.8 |
) |
(9.3 |
) |
(8.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBIT |
|
21 |
|
73 |
|
139 |
|
(640 |
) |
(222 |
) |
(474 |
) |
(476 |
) |
|
|
as a % of sales |
|
1.7 |
|
2.9 |
|
3.7 |
|
(12.9 |
) |
(19.9 |
) |
(21.0 |
) |
(13.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITA |
|
15 |
|
55 |
|
111 |
|
(34 |
) |
(76 |
) |
(225 |
) |
(116 |
) |
|
|
as a % of sales |
|
1.2 |
|
2.2 |
|
2.9 |
|
(0.7 |
) |
(6.8 |
) |
(10.0 |
) |
(3.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
173 |
|
360 |
|
563 |
|
589 |
|
85 |
|
97 |
|
361 |
|
|
|
as a % of sales |
|
13.8 |
|
14.5 |
|
14.9 |
|
11.9 |
|
7.6 |
|
4.3 |
|
10.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITA |
|
71 |
|
135 |
|
255 |
|
324 |
|
3 |
|
10 |
|
107 |
|
|
|
as a % of sales |
|
5.7 |
|
5.4 |
|
6.8 |
|
6.5 |
|
0.3 |
|
0.4 |
|
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
229 |
|
440 |
|
707 |
|
921 |
|
139 |
|
280 |
|
506 |
|
|
|
as a % of sales |
|
18.3 |
|
17.7 |
|
18.8 |
|
18.6 |
|
12.5 |
|
12.4 |
|
14.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
(17 |
) |
(22 |
) |
5 |
|
(611 |
) |
(266 |
) |
(532 |
) |
(539 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
period ending 2006 |
|
Period ending 2007 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories as a % of sales |
|
14.3 |
|
14.0 |
|
13.8 |
|
13.0 |
|
13.3 |
|
13.0 |
|
13.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt: group equity ratio |
|
|
(1) |
|
(1) |
|
(1) |
48 : 52 |
|
52 : 48 |
|
54 : 46 |
|
52:48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employees (in FTE) |
|
35,472 |
|
36,996 |
|
38,144 |
|
37,468 |
|
37,620 |
|
38,176 |
|
38,116 |
|
|
|
(1) Not meaningful
24
CORPORATE NEWS FROM NXP
NXP Semiconductors Announces Third Quarter 2007 Results
Sequential adjusted EBITDA rises to EUR 226 million
Highlights
Third quarter sales at EUR 1,211 million vs EUR 1,141 million in the second quarter
Currency and business comparable sequential sales growth of 7.4% (nominal growth 6.1%), comparable year on year decrease of 2.8%*
Third quarter adjusted EBITDA, excluding effects of Purchase Price Accounting, at EUR 226 million (adjusted EBITA, excluding effects PPA at EUR 97 million)
Cash position increased to EUR 681 million at end of third quarter, compared to EUR 514 million at the end of the second quarter of 2007
Book to bill ratio of 1.01 in third quarter
Factory loading up to 85% in the third quarter from 74% in the second quarter and 69% in the first quarter of 2007
Eindhoven, The Netherlands, October 30 2007 NXP Semiconductors today announced third quarter sales of EUR 1,211 million, a 7.4% currency and business comparable growth over the second quarter of 2007 (nominal 6.1%) and a 2.8% comparable decline* over the third quarter of 2006. Excluding the impact of Purchase Price Accounting, adjusted EBITDA was EUR 226 million compared to EUR 267 million in the third quarter of 2006 and 141 million in the second quarter of 2007.
Frans van Houten, President and CEO of NXP Semiconductors, commented:
Against a background of continuing soft industry conditions, NXP has performed in line with our expectations. The improvements in Mobile and Personal continue with the group announcing the shipment of its 500 millionth AERO RF CMOS transceiver to the mobile handset market, reflecting the successful integration of the wireless operations of Silicon Labs, acquired earlier in the year. The third quarter also witnessed a good performance from MultiMarket Semiconductors and stabilisation in the Home Business Unit after a series of challenging quarters. The Home group won some notable clients, particularly in the area of Digital TV with three leading television manufacturers of which the impact will become visible in the course of 2008. The Automotive business gained market share and the Identification business slowed in line with the industry as a whole.
The improved results in the third quarter can be attributed to normal seasonal sales growth leading to improved factory loading, as well as the impact of our Business Renewal Program, where we are well on our way to realize the EUR 100 million savings on a run rate basis by the end of 2007. Our active portfolio management program continued in particular with the divestment of the Cordless and VoIP Terminal operations. In addition we had a successful start of the assembly and test joint venture with ASE (called ASEN) in Suzhou, China, executing on our asset-light strategy.
1
At the end of the third quarter, NXPs book to bill ratio stood at 1.01 whilst its cash amounted to EUR 681 million.
Outlook: The market remains soft and visibility remains short. Given NXPs book-to-bill ratio of 1.01 in the third quarter, the company expects low single digit sequential sales growth for the fourth quarter 2007 on a currency comparable basis.
The full report is available on NXP website (www.nxp.com/investor).
*Cordless & VoIP Terminal operations deconsolidated as per the end of August following completion of the sale of the business
About NXP Semiconductors
NXP is a top semiconductor company founded by Philips
more than 50 years ago. Headquartered in Europe, the company has 37,000
employees working in more than 20 countries and posted sales of EUR 5 billion
in 2006. NXP creates semiconductors, system solutions and software that deliver
better sensory experiences in mobile phones, personal media players, TVs,
set-top boxes, identification applications, cars and a wide range of other
electronic devices. News from NXP is located at www.nxp.com.
For further press information, please contact:
Media: |
|
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized at Eindhoven, on the 30th day of October 2007.
NXP B.V. |
||
|
||
|
/s/ Frans van Houten |
|
Frans van Houten |
||
(President and Chief Executive Officer, Chairman of the Board of Management) |
||
|
||
|
||
|
/s/ Peter van Bommel |
|
Peter van Bommel |
||
(Chief Financial Officer, Member of the Board of Management) |