“NXP delivered full-year revenue of $8.88 billion, a decline of 6% year-on-year, against a very challenging semiconductor industry backdrop. As we look forward to 2020, we are increasingly confident that the demand trends within our end markets are beginning to moderately improve. Notwithstanding the operating environment we experienced in 2019, NXP drove improved profitability, strong free cash flow generation, and continued to successfully execute our strategy within our target markets. During 2019, we returned $1.76 billion to our shareholders,” said Richard Clemmer, NXP CEO.
“Over the course of the year, we significantly enhanced our product portfolio,” Clemmer added. “We successfully acquired the Marvell wireless connectivity assets and introduced new, innovative products and solutions. Our customers have already begun to adopt many of these new solutions, and as they continue to ramp into volume production, we anticipate new products will help to underpin NXP’s long-term growth, financial and capital return targets.”
Fourth-quarter revenue was $2.3 billion, down 4% year-on-year. Fourth quarter GAAP gross margin was 52.5%, and GAAP operating margin was 8.6%. Fourth-quarter non-GAAP gross margin was 54.2%, and non-GAAP operating margin was 29.9%. Full-year cash flow from operations was $2.37 billion, with net capex investments of $503 million, resulting in non-GAAP free cash flow of $1.87 billion.