NXP Semiconductors Announces Second Quarter 2009 Results

Adjusted EBITDA in the second quarter amounted to a profit of USD 89 million, down from a profit of USD 114 million in the second quarter of 2008 and up from a loss of USD 71 million in the first quarter of 2009. Adjusted EBITA was a loss of USD 18 million this quarter compared to a loss of USD 29 million in the same period last year and a loss of USD 188 million in the previous quarter.



Net income for the second quarter of 2009 was a profit of USD 344 million compared to a loss of USD 319 million in the second quarter of 2008 and a loss of USD 568 in the first quarter of 2009. The increase in net income is largely attributable to higher financial income as a result of the bond exchanges.



The cash position was USD 1,373 million at the end of the second quarter compared with USD 1,706 million at the end of the first quarter of 2009.



The execution of the Redesign Program is on track. The fab in Caen was sold during the second quarter of 2009. The fab in Fishkill stopped production in early July 2009.



Outlook: The weak macro-economic conditions are still continuing. Although we have recently experienced positive order book developments, we believe this may be driven mainly by supply chain replenishment and not by a fundamental improvement of the semiconductors market, apart from China where we have seen real demand increase and recent improvements in other Asian countries. Considering the current business development we expect a sequential sales increase between 10% and 20% in the third quarter on a business and currency comparable basis (excluding wafer sales to ST-Ericsson). However, visibility beyond the third quarter is still limited.