“NXP delivered better than historical seasonal results for the fourth quarter of 2016, with revenue of $2.44 billion, an increase of 52% year on year, and a decline of 1% versus the prior quarter, in-line with the mid-point of our guidance. Our full-year revenue was $9.5 billion, up 56% versus our results in 2015,” said Richard Clemmer, NXP CEO.
“Due to the disciplined and focused execution by the entire NXP team, we were able to drive exceptionally strong financial results throughout 2016. In the fourth quarter our GAAP operating margin was 7.1%, and for the full-year, GAAP operating margin was a loss of 1.6%. Throughout 2016, NXP’s GAAP operating margin was impacted by merger related accounting expenses associated with the Freescale merger. Our fourth quarter non-GAAP operating margin was 29.3%, representing a 600 basis points improvement compared to our first quarter of 2016 and 130 basis points better sequentially. Notwithstanding the challenging top-line environment we navigated throughout the year, our non-GAAP operating margin was 26.6%,” said Dan Durn, NXP CFP.
“In summary, we view our recent revenue performance as a positive indication that the Freescale and NXP integration continues to progress very well, and is ahead of schedule as our go-to-market and portfolio decisions are well aligned with our customer’s long-term requirements,” Clemmer reported.
“Finally, 2016 was a year of significant highlights for NXP,” he concluded. “We began the year on our journey to successfully integrate Freescale and NXP, both very successful and strong companies prior to the merger. In June, we announced the divestment of our Standard Products business, the premier discrete and logic supplier, soon to be known as Nexperia, to JAC Capital and Wise Road Capital. The divestment has achieved all needed regulatory approvals, the disentanglement process is going very well and the final close is expected during the first quarter of 2017. And finally, in October we announced the agreement to be acquired by Qualcomm, creating a technology leader in the strategic and high growth markets of automotive, IoT, security and networking.”