[ Back ]   [ More News ]   [ Home ]
NXP Semiconductors Reports Second Quarter 2013 Results

EINDHOVEN, THE NETHERLANDS -- (Marketwired) -- Jul 31, 2013 -- NXP Semiconductors N.V. (NASDAQ: NXPI)

                                                              
                                                    Q2 2013   
                                                --------------
             Revenue                            $1,188 million
             GAAP Gross margin                       45.0%    
             GAAP Operating margin                   14.3%    
             GAAP Diluted earnings per share         $0.43    
                                                              
             Non-GAAP Gross margin                   45.5%    
             Non-GAAP Operating margin               21.5%    
             Non-GAAP Diluted Earnings per share     $0.71    
                                                              

NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter of 2013, ended June 30, 2013, and provided guidance for the third quarter 2013.

"Our revenue results for the second quarter of 2013 came in at the higher end of our guidance, as NXP delivered Product revenue of $1,159 million, a ten percent sequential increase, and a twelve percent increase from the comparable year ago period. Total NXP revenue in the second quarter was $1,188 million, just over a nine percent sequential increase, and nearly a nine percent increase from the comparable year ago period," said Richard Clemmer, NXP Chief Executive Officer.

"Our revenue performance during the quarter reflected robust double digit sequential growth across all of our HPMS end-markets with a strong rebound in growth in our Infrastructure & Industrial and our Portable & Computing business. Our Identification business continues to perform very well, as a result of strong ongoing demand for our banking and transit products, offset slightly by product transitions in our mobile payments business. Our Automotive business delivered strong sequential growth due to better than seasonal demand, combined with the launch of a new customer entertainment program and the continued ramp of major keyless entry programs. During the second quarter both the Identification and Automotive business' achieved historic revenue record levels -- a positive reflection of the intense passion and customer focus both teams demonstrate in managing their business. The revenue performance of the Standard products segment was slightly below our expectations as a result of weaker than expected demand for certain Logic products within the mobile end-market. From an earnings perspective, we exceeded guidance primarily as a result of better operating expense control combined with strong revenue growth in our HPMS segment.

"Our focus continues to be delivering top-line growth in excess of our peers, while delivering best in class operating profitability. The overall performance of HPMS is very good, with operating margin solidly within our long-term target, and we are comfortable delivering on our intermediate profitability goals. Our strategy of providing unique and differentiated product solutions continues to resonate with our customers, and should result in continued long-term growth in excess of the overall end market," said Clemmer.

Summary of Second Quarter 2013 Results ($ millions, except EPS, unaudited)

                                                                            
                                                                            
                                  Q2 2013   Q1 2013  Q2 2012    Q - Q  Y - Y
                                  -------   -------  -------   ------ ------
                                                                            
Product Revenue                   $ 1,159   $ 1,055  $ 1,032     10%    12% 
Manufacturing Operations          $    29   $    29  $    62     0%    -53% 
Corporate & Other                 $   -     $   1    $   -       NM     NM  
                                  -------   -------  -------                
Total Revenue                     $ 1,188   $ 1,085  $ 1,094     9%     9%  
GAAP Gross Profit                 $   535   $   483  $   538     11%    -1% 
  Gross Profit Adjustments (1)    $    (5)  $   (54) $    33                
Non-GAAP Gross Profit             $   540   $   537  $   505     1%     7%  
  GAAP Gross Margin                                                         
                                       45%       45%      49%               
  Non-GAAP Gross Margin                                                     
                                       46%       50%      46%               
GAAP Operating Income             $   170   $   115  $   156     48%    9%  
  Operating Income Adjustments                                              
   (1)                                (86)     (140)     (59)               
Non-GAAP Operating Income         $   256   $   255  $   215     0%     19% 
  GAAP Operating Margin                                                     
                                       14%       11%      14%               
  Non-GAAP Operating Margin                                                 
                                       22%       24%      20%               
GAAP Net Income / (Loss)          $   111   $   (14) $   (90)    NM     NM  
  Net Income Adjustments (1)          (71)     (200)    (214)               
Non-GAAP Net Income / (Loss)      $   182   $   186  $   124     -2%    47% 
GAAP EPS                          $  0.43   $ (0.06) $ (0.36)    NM     NM  
  EPS Adjustments (1)             $ (0.28)  $ (0.78) $ (0.85)               
Non-GAAP EPS                      $  0.71   $  0.72  $  0.49     -1%    45% 

1. Please see "Discussion of GAAP to non-GAAP Reconciliation" on page 3 of this release.

Supplemental Information ($ millions, unaudited)

                                                                            
                                                                            
                                                     Percent                
                            Q2 2013 Q1 2013 Q2 2012 Q2 Total  Q - Q   Y - Y 
                            ------- ------- ------- -------- ------- -------
                                                                            
  Automotive                $   253 $   230 $   244    21%     10%      4%  
  Identification            $   339 $   300 $   234    29%     13%     45%  
  Infrastructure &                                                          
   Industrial               $   180 $   153 $   156    15%     18%     15%  
  Portable & Computing      $   106 $    93 $   107    9%      14%     -1%  
                            ------- ------- ------- --------                
High Performance Mixed                                                      
 Signal (HPMS)              $   878 $   776 $   741    74%     13%     18%  
Standard Products (STDP)    $   281 $   279 $   291    24%      1%     -3%  
                            ------- ------- ------- --------                
Product Revenue             $ 1,159 $ 1,055 $ 1,032    98%     10%     12%  
Manufacturing Operations    $    29 $    29 $    62    2%       0%     -53% 
Corporate & Other           $     - $     1 $     -    0%       NM      NM  
                            ------- ------- ------- --------                
Total Revenue               $ 1,188 $ 1,085 $ 1,094   100%      9%      9%  
                                                                            

Product Revenue is the combination of revenue from the High Performance Mixed Signal (HPMS) and Standard Products (STDP) segments.

Additional and Subsequent Information for the Second Quarter of 2013:

Guidance for the Third Quarter 2013: ($ millions, except share count and EPS) (1)

                                                                            
                                                     Guidance Range         
                                               Low        Mid        High   
                                            ---------  ---------  --------- 
                                                                            
Product Revenue                             $   1,205  $   1,229  $   1,252 
  Q-Q                                               4%         6%         8%
Mfg. & Other Revenue                        $      34  $      34  $      34 
                                            ---------  ---------  --------- 
Total Revenue                               $   1,239  $   1,263  $   1,286 
  Q-Q                                               4%         6%         8%
Non-GAAP Gross Profit                       $     564  $     581  $     598 
  Non-GAAP Gross Margin                            46%        46%        47%
Non-GAAP Operating Income                   $     268  $     278  $     288 
  Non-GAAP Operating Margin                        22%        22%        22%
  Interest Expense                          $      44  $      44  $      44 
  Cash Taxes                                $       7  $       7  $       7 
  Non-controlling Interest                  $      16  $      16  $      16 
                                            ---------  ---------  --------- 
Non-GAAP Net Income                         $     201  $     211  $     221 
Ave. Diluted Shares                               258        258        258 
  Non - GAAP EPS                            $    0.78  $    0.82  $    0.86 
                                                                            

Note (1): NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. The guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Use of Non-GAAP Financial Information" elsewhere in this release. For the factors, risks and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances. Considering the uncertain magnitude and variability of the foreign exchange consequences upon "PPA effects", "restructuring costs", "other incidental items" and any interest expense or taxes in future periods, management believes that GAAP financial measures are not available for NXP without unreasonable efforts on a forward looking basis.

Discussion of GAAP to non-GAAP Reconciliations
In addition to providing financial information on a basis consistent with U.S. generally accepted accounting principles ("GAAP"), NXP also provides the following selected financial measures on a non-GAAP basis: (i) "non-GAAP gross profit," (ii) "non-GAAP gross margin," (iii) "non-GAAP Research and development," (iv) "non-GAAP Selling, general and administrative," (v) non-GAAP Other income," (vi) "non-GAAP operating income (loss)," (vii) "non-GAAP operating margin," (viii) "non-GAAP net income/ (loss)," (ix) "PPA effects," (x) "Restructuring costs," (xi) "Stock based compensation," (xii) "Other incidental items," (xiii) "non-GAAP Financial Income (expense)," (xiv) "non-GAAP Results relating to equity-accounted investees," (xv) "non-GAAP Cash tax (expense)," (xvi) "non-GAAP EPS," (xvii) "EBITDA," "adjusted EBITDA" and "trailing 12 month adjusted EBITDA" and (xviii) "net debt."

In this release, references to:

Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled "Financial Reconciliation of GAAP to non-GAAP Results (unaudited)."

NXP provides non-GAAP measures because management believes that they are helpful to understand the underlying operating and profit structure of NXP's operations, to provide additional insight as to how management assesses the performance and allocation of resources among its various segments and because the financial community uses them in its analysis of NXP's operating and/or financial performance, historical results and projections of NXP's future operating results. NXP presents "non-GAAP gross profit," "non-GAAP research and development," "non-GAAP Selling, general and administrative," "non-GAAP Other income," "non-GAAP operating income," "non-GAAP net income/ (loss)," "non-GAAP gross margin," "non-GAAP operating margin" and "non-GAAP EPS" because these financials measures are net of "PPA effects," "restructuring costs," "stock based compensation," "other incidental items," and "other adjustments" which have affected the comparability of NXP's results over the years. NXP presents "EBITDA," "adjusted EBITDA" and "trailing 12 month adjusted EBITDA" because these financials measures enhance an investor's understanding of NXP's financial performance.

Non-GAAP measures should not be considered a substitute for any information derived or calculated in accordance with GAAP, are not intended to be measures of financial performance or condition, liquidity, profitability or operating cash flows in accordance with GAAP, and should not be considered as alternatives to net income (loss), operating income or any other performance measures determined in accordance with GAAP. These non-GAAP measures can vary from other participants in the semiconductor industry. They have limitations as analytical tools and should not be considered in isolation for analysis of NXP's financial results as reported under GAAP.

Conference Call and Webcast Information

NXP will host a conference call on August 1, 2013 at 8:00 a.m. U.S. Eastern Daylight Time (2:00 p.m. Central European Central Time) to discuss its second quarter 2013 financial results and provide an outlook for the third quarter of 2013.

Interested parties may join the conference call by dialing 1 - 800 - 901 - 5213 (within the U.S.) or 1 - 617 - 786 - 2962 (outside the U.S.). The participant pass-code is 70452866. To listen to a webcast of the event, please visit the Investor Relations section of the NXP website at www.nxp.com/investor. The webcast will be recorded and available for replay shortly after the call concludes.

About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise. These innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. A global semiconductor company with operations in more than 25 countries, NXP posted revenue of $4.36 billion in 2012. Additional information can be found by visiting www.nxp.com.

Forward-looking Statements
This document includes forward-looking statements which include statements regarding NXP's 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; the ability to successfully introduce new technologies and products; the end-market demand for the goods into which NXP's products are incorporated; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity; the ability to meet the combination of corporate debt service, research and development and capital investment requirements; the ability to accurately estimate demand and match manufacturing production capacity accordingly or obtain supplies from third-party producers; the access to production capacity from third-party outsourcing partners; any events that might affect third-party business partners or NXP's relationship with them; the ability to secure adequate and timely supply of equipment and materials from suppliers; the ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; the ability to form strategic partnerships and joint ventures and to successfully cooperate with alliance partners; the ability to win competitive bid selection processes to develop products for use in customers' equipment and products; the ability to successfully establish a brand identity; the ability to successfully hire and retain key management and senior product architects; and, the ability to maintain good relationships with our suppliers. In addition, this document contains information concerning the semiconductor industry and NXP's business segments generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, NXP's market segments and product areas may develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

                                                                            
                                                                            
NXP Semiconductors                                                          
Table 1: Condensed consolidated statement of operations (unaudited)         
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions except share                                                 
 data)                                     Three Months Ended               
                             ---------------------------------------------- 
                              June 30, 2013  March 31, 2013   July 1, 2012  
                             --------------  --------------  -------------- 
                                                                            
Revenue                      $        1,188  $        1,085  $        1,094 
                                                                            
Cost of revenue                        (653)           (602)           (556)
                             --------------  --------------  -------------- 
                                                                            
Gross profit                            535             483             538 
                                                                            
Research and development               (155)           (153)           (156)
Selling, general and                                                        
 administrative                        (211)           (222)           (231)
                             --------------  --------------  -------------- 
Total operating expenses               (366)           (375)           (387)
                                                                            
Other income (expense)                    1               7               5 
                             --------------  --------------  -------------- 
                                                                            
Operating income (loss)                 170             115             156 
                                                                            
Financial income (expense):                                                 
  Interest income (expense)                                                 
   - net                                (47)            (49)            (70)
  Foreign exchange gain                                                     
   (loss)                                32             (53)           (104)
  Gain (loss) on                                                            
   extinguishment of long                                                   
   term debt                            (23)            (37)              - 
  Other financial expense                (8)            (13)             (4)
                             --------------  --------------  -------------- 
                                                                            
Income (loss) before taxes              124             (37)            (22)
                                                                            
Benefit (provision) for                                                     
 income taxes                             2             (11)             (7)
Results relating to equity-                                                 
 accounted investees                      3              47             (45)
                             --------------  --------------  -------------- 
                                                                            
Income (loss) from                                                          
 continuing operations                  129              (1)            (74)
Income (loss) on                                                            
 discontinued operations,                                                   
 net of tax                               -               -               - 
                             --------------  --------------  -------------- 
Net income (loss)                       129              (1)            (74)
Net (income) loss                                                           
 attributable to non-                                                       
 controlling interests                  (18)            (13)            (16)
                             --------------  --------------  -------------- 
Net income (loss)                                                           
 attributable to                                                            
 stockholders                           111             (14)            (90)
                                                                            
Earnings per share data:                                                    
Net income (loss)                                                           
 attributable to                                                            
 stockholders per common                                                    
 share                                                                      
                                                                            
Basic earnings per common                                                   
 share in $                  $         0.44  $        (0.06) $        (0.36)
Diluted earnings per common                                                 
 share in $                  $         0.43  $        (0.06) $        (0.36)
                                                                            
Weighted average number of                                                  
 shares of common stock (in                                                 
 thousands):                                                                
Basic                               249,449         249,668         248,272 
Diluted                             255,265         249,668         248,272 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 2: Condensed consolidated balance sheet (unaudited)                   
                                                                            
----------------------------------------------------------------------------
                                                                            
($ in millions)                                    As of                    
                              ----------------------------------------------
                               June 30, 2013  March 31, 2013   July 1, 2012 
                              --------------  --------------  --------------
                                                                            
Current assets:                                                             
  Cash and cash equivalents   $          569  $          595  $          837
  Accounts receivable - net              495             464             451
  Other receivables                       49              48              16
  Assets held for sale                    10              10              17
  Inventories                            742             730             644
  Other current assets                   132             109              96
                              --------------  --------------  --------------
Total current assets                   1,997           1,956           2,061
                                                                            
Non-current assets:                                                         
  Investments in equity-                                                    
   accounted investees                    47              46              39
  Other non-current assets               128             131             145
  Property, plant and                                                       
   equipment                           1,030           1,039           1,044
  Identified intangible                                                     
   assets                                841             888           1,061
  Goodwill                             2,253           2,221           2,186
                              --------------  --------------  --------------
Total non-current assets               4,299           4,325           4,475
                                                                            
Total assets                           6,296           6,281           6,536
                                                                            
Current liabilities:                                                        
  Accounts payable                       521             513             524
  Liabilities held for sale                -               -               5
  Accrued liabilities                    610             599             524
  Short-term debt                         50             291              52
                              --------------  --------------  --------------
Total current liabilities              1,181           1,403           1,105
                                                                            
Non-current liabilities:                                                    
  Long-term debt                       3,331           3,149           3,767
  Other non-current                                                         
   liabilities                           451             454             447
                              --------------  --------------  --------------
Total non-current                                                           
 liabilities                           3,782           3,603           4,214
                                                                            
Non-controlling interests                219             248             201
Stockholders' equity                   1,114           1,027           1,016
                              --------------  --------------  --------------
Total equity                           1,333           1,275           1,217
                                                                            
Total liabilities and equity           6,296           6,281           6,536
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 3: Condensed consolidated statement of cash flows (unaudited)         
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)                            Three Months Ended               
                             ---------------------------------------------- 
                              June 30, 2013  March 31, 2013   July 1, 2012  
                             --------------  --------------  -------------- 
                                                                            
Cash Flows from operating                                                   
 activities                                                                 
Net income (loss)            $          129  $           (1) $          (74)
Adjustments to reconcile net                                                
 income (loss):                                                             
  Depreciation and                                                          
   amortization                         132             132             139 
  Stock-based compensation               20              17              15 
  Net (gain) loss on sale of                                                
   assets                                (1)             (1)              - 
  (Gain) loss on                                                            
   extinguishment of debt                23              37               - 
  Results relating to equity                                                
   accounted investees                   (3)            (47)             45 
Changes in operating assets                                                 
 and liabilities:                                                           
  (Increase) decrease in                                                    
   trade receivables                    (26)            (15)            (57)
  (Increase) decrease in                                                    
   inventories                          (10)            (20)            (12)
  Increase (decrease) in                                                    
   trade payables                         6             (44)             71 
  (Increase) decrease in                                                    
   other receivables                     (4)             (8)             18 
  Increase (decrease) in                                                    
   other payables                       (78)             17              18 
  Changes in deferred taxes               1               1              (5)
Exchange differences                    (32)             53             104 
Other items                               3              (2)              7 
                             --------------  --------------  -------------- 
Net cash provided by (used                                                  
 for) operating activities              160             119             269 
                                                                            
Cash flows from investing                                                   
 activities:                                                                
  Purchase of identified                                                    
   intangible assets                    (11)             (6)             (7)
  Capital expenditures on                                                   
   property, plant and                                                      
   equipment                            (49)            (41)            (74)
  Proceeds from disposals of                                                
   property, plant and                                                      
   equipment                              3               2               1 
  Proceeds from sale of                                                     
   interests in businesses                -               -               - 
  Purchase of interests in                                                  
   businesses                             -               -              (2)
  Proceeds from return of                                                   
   equity investment                      1               -               - 
  Other                                   -               2               - 
                             --------------  --------------  -------------- 
Net cash (used for) provided                                                
 by investing activities                (56)            (43)            (82)
                                                                            
Cash flows from financing                                                   
 activities:                                                                
  Net (repayments)                                                          
   borrowings of short-term                                                 
   debt                                  (1)             (1)              1 
  Repayments under the                                                      
   revolving credit facility           (155)           (280)           (330)
  Amounts drawn under the                                                   
   revolving credit facility            200             180             330 
  Repurchase of long-term                                                   
   debt                                (874)           (980)              - 
  Principal payments on                                                     
   long-term debt                        (5)             (4)             (5)
  Net proceeds from the                                                     
   issuance of long-term                                                    
   debt                                 742             990               1 
  Dividends paid to non-                                                    
   controlling interests                  -               -             (39)
  Cash proceeds from                                                        
   exercise of stock options             10              40               - 
  Purchase of treasury                                                      
   shares                               (48)            (35)            (37)
                             --------------  --------------  -------------- 
Net cash provided by (used                                                  
 for) financing activities             (131)            (90)            (79)
                                                                            
Net cash provided by (used                                                  
 for) continuing operations             (27)            (14)            108 
                                                                            
Cash flows from discontinued                                                
 operations:                                                                
  Net cash provided by (used                                                
   for) operating activities              -               -               - 
  Net cash provided by (used                                                
   for) investing activities              -               -             (45)
  Net cash provided by (used                                                
   for) financing activities              -               -               - 
                             --------------  --------------  -------------- 
Net cash provided by (used                                                  
 for) discontinued                                                          
 operations                               -               -             (45)
                                                                            
Net cash from continuing and                                                
 discontinued operations                (27)            (14)             63 
                                                                            
Effect of changes in                                                        
 exchange rates on cash                                                     
 positions                                1              (8)             (8)
                             --------------  --------------  -------------- 
Increase (decrease) in cash                                                 
 and cash equivalents                   (26)            (22)             55 
Cash and cash equivalents at                                                
 beginning of period                    595             617             782 
                             --------------  --------------  -------------- 
Cash and cash equivalents at                                                
 end of period                          569             595             837 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 4: Reconciliation of GAAP to non-GAAP Segment Results (unaudited)     
                                                                            
--------------------------------------------------------------------------- 
                                                                            
($ in millions)                            Three Months Ended               
                             ---------------------------------------------- 
                              June 30, 2013  March 31, 2013   July 31, 2012 
                             --------------  --------------  -------------- 
                                                                            
High Performance Mixed                                                      
 Signal (HPMS)                          878             776             741 
Standard Products                       281             279             291 
                             --------------  --------------  -------------- 
  Product Revenue                     1,159           1,055           1,032 
    Manufacturing Operations             29              29              62 
    Corporate and Other                   -               1               - 
                             --------------  --------------  -------------- 
Total Revenue                $        1,188  $        1,085  $        1,094 
                             ==============  ==============  ============== 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
HPMS Revenue                 $          878  $          776  $          741 
  Percent of Total Revenue             73.9%           71.5%           67.7%
  HPMS segment GAAP gross                                                   
   profit                               472             417             449 
    PPA effects                           -               -              (6)
    Restructuring                         3              (1)              - 
    Stock based compensation             (2)             (1)              - 
    Other incidentals                    (1)              -              (2)
    Other adjustments                     -             (46)             46 
                             --------------  --------------  -------------- 
  HPMS segment non-GAAP                                                     
   gross profit              $          472  $          465  $          411 
                             ==============  ==============  ============== 
                                                                            
    HPMS segment GAAP gross                                                 
     margin                            53.8%           53.7%           60.6%
    HPMS segment non-GAAP                                                   
     gross margin                      53.8%           59.9%           55.5%
                                                                            
  HPMS segment GAAP                                                         
   operating profit                     178             123             154 
    PPA effects                         (45)            (46)            (52)
    Restructuring                         3              (1)              1 
    Stock based compensation            (16)            (12)             (9)
    Other incidentals                    (2)             (1)             (9)
    Other adjustments                     -             (46)             46 
                             --------------  --------------  -------------- 
  HPMS segment non-GAAP                                                     
   operating profit          $          238  $          229  $          177 
                             ==============  ==============  ============== 
                                                                            
    HPMS segment GAAP                                                       
     operating margin                  20.3%           15.9%           20.8%
    HPMS segment non-GAAP                                                   
     operating margin                  27.1%           29.5%           23.9%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
Standard Products Revenue    $          281  $          279  $          291 
  Percent of Total Revenue             23.7%           25.7%           26.6%
  Standard Products segment                                                 
   GAAP gross profit                     68              70              88 
    PPA effects                           -              (1)             (1)
    Restructuring                         5              (1)             (1)
    Stock based compensation             (1)              -               - 
    Other incidentals                    (3)             (1)                
                             --------------  --------------  -------------- 
  Standard Products segment                                                 
   non-GAAP gross profit     $           67  $           73  $           90 
                             ==============  ==============  ============== 
                                                                            
    Standard Products                                                       
     segment GAAP gross                                                     
     margin                            24.2%           25.1%           30.2%
    Standard Products                                                       
     segment non-GAAP gross                                                 
     margin                            23.8%           26.2%           30.9%
                                                                            
  Standard Products segment                                                 
   GAAP operating profit                  9               7              26 
    PPA effects                         (15)            (15)            (15)
    Restructuring                         5              (1)              - 
    Stock based compensation             (4)             (4)             (3)
    Other incidentals                    (3)             (1)             (1)
                             --------------  --------------  -------------- 
  Standard Products segment                                                 
   non-GAAP operating profit $           26  $           28  $           45 
                             ==============  ==============  ============== 
                                                                            
    Standard Products                                                       
     segment GAAP operating                                                 
     margin                             3.2%            2.5%            8.9%
    Standard Products                                                       
     segment non-GAAP                                                       
     operating margin                   9.3%           10.0%           15.5%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 4: Reconciliation of GAAP to non-GAAP Segment Results (unaudited)     
(con't)                                                                     
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)                            Three Months Ended               
                             ---------------------------------------------- 
                              June 30, 2013  March 31, 2013   July 1, 2012  
                             --------------  --------------  -------------- 
Manufacturing Operations                                                    
 Revenue                     $           29  $           29  $           62 
  Percent of Total Revenue              2.4%            2.7%            5.7%
  Manufacturing Operations                                                  
   segment GAAP gross profit             (6)             (5)             (3)
    PPA effects                          (3)             (2)             (2)
    Restructuring                        (2)              -               - 
    Stock based compensation              -               -               - 
    Other incidentals                    (1)             (1)             (1)
                             --------------  --------------  -------------- 
  Manufacturing Operations                                                  
   segment non-GAAP gross                                                   
   profit                    $            -  $           (2) $            - 
                             ==============  ==============  ============== 
                                                                            
    Manufacturing Operations                                                
     segment GAAP gross                                                     
     margin                           -20.7%          -17.2%           -4.8%
    Manufacturing Operations                                                
     segment non-GAAP gross                                                 
     margin                             0.0%           -6.9%            0.0%
                                                                            
  Manufacturing Operations                                                  
   segment GAAP operating                                                   
   profit                               (10)             (7)             (5)
    PPA effects                          (6)             (6)             (6)
    Restructuring                        (2)              -               - 
    Stock based compensation              -               -               - 
    Other incidentals                    (1)             (1)              2 
                             --------------  --------------  -------------- 
  Manufacturing Operations                                                  
   segment non-GAAP                                                         
   operating profit          $           (1) $            -  $           (1)
                             ==============  ==============  ============== 
                                                                            
    Manufacturing Operations                                                
     segment GAAP operating                                                 
     margin                           -34.5%          -24.1%           -8.1%
    Manufacturing Operations                                                
     segment non-GAAP                                                       
     operating margin                  -3.4%            0.0%           -1.6%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
Corporate and Other Revenue  $            -  $            1  $            - 
  Percent of Total Revenue              0.0%            0.1%            0.0%
  Corporate and Other                                                       
   segment GAAP gross profit              1               1               4 
    PPA effects                           -               -               - 
    Restructuring                         -               -               - 
    Stock based compensation              -               -               - 
    Other incidentals                     -               -               - 
                             --------------  --------------  -------------- 
  Corporate and Other                                                       
   segment non-GAAP gross                                                   
   profit                    $            1  $            1  $            4 
                             ==============  ==============  ============== 
                                                                            
  Corporate and Other                                                       
   segment GAAP gross margin             NM              NM              NM 
  Corporate and Other                                                       
   segment non-GAAP gross                                                   
   margin                                NM              NM              NM 
                                                                            
  Corporate and Other                                                       
   segment GAAP operating                                                   
   profit                                (7)             (8)            (19)
    PPA effects                           -               -               - 
    Restructuring                         4              (2)             (2)
    Stock based compensation              -              (1)             (3)
    Other incidentals                    (4)             (3)             (8)
                             --------------  --------------  -------------- 
  Corporate and Other                                                       
   segment non-GAAP                                                         
   operating profit          $           (7) $           (2) $           (6)
                             ==============  ==============  ============== 
                                                                            
  Corporate and Other                                                       
   segment GAAP operating                                                   
   margin                                NM              NM              NM 
  Corporate and Other                                                       
   segment non-GAAP                                                         
   operating margin                      NM              NM              NM 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 5: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)   
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions except                                                       
 share data)                              Three Months Ended                
                          ------------------------------------------------- 
                           June 30, 2013     March 31, 2013   July 1, 2012  
                          --------------     --------------  -------------- 
                                                                            
Revenue                   $        1,188     $        1,085  $        1,094 
                                                                            
GAAP Gross profit         $          535     $          483  $          538 
  PPA effects                         (3)                (3)             (9)
  Restructuring                        6                 (2)             (1)
  Stock Based                                                               
   Compensation                       (3)                (1)              - 
  Other incidentals                   (5)                (2)             (3)
  Other adjustments                    -                (46)             46 
                          --------------     --------------  -------------- 
Non-GAAP Gross profit     $          540     $          537  $          505 
                          ==============     ==============  ============== 
                                                                            
GAAP Gross margin                   45.0%              44.5%           49.2%
                                                                            
Non-GAAP Gross margin               45.5%              49.5%           46.2%
                                                                            
  GAAP Research and                                                         
   development            $         (155)    $         (153) $         (156)
    PPA effects                        -                  -               - 
    Restructuring                      -                  -               1 
    Stock based                                                             
     compensation                     (2)                (3)             (1)
    Other incidentals                 (1)                (1)             (6)
                          --------------     --------------  -------------- 
  Non-GAAP Research and                                                     
   development            $         (152)    $         (149) $         (150)
                          ==============     ==============  ============== 
                                                                            
  GAAP Selling, general                                                     
   and administrative     $         (211)    $         (222) $         (231)
    PPA effects                      (63)               (64)            (64)
    Restructuring                      4                 (2)             (2)
    Stock based                                                             
     compensation                    (15)               (13)            (14)
    Other incidentals                 (4)                (3)             (9)
                          --------------     --------------  -------------- 
  Non-GAAP Selling,                                                         
   general and                                                              
   administrative         $         (133)    $         (140) $         (142)
                          ==============     ==============  ============== 
                                                                            
  GAAP Other income                                                         
   (expense)              $            1     $            7  $            5 
    PPA effects                        -                  -               - 
    Restructuring                      -                  -               1 
    Other incidentals                  -                  -               2 
                          --------------     --------------  -------------- 
  Non-GAAP Other income                                                     
   (expense)              $            1     $            7  $            2 
                          ==============     ==============  ============== 
                                                                            
GAAP Operating income                                                       
 (loss)                   $          170     $          115  $          156 
  PPA effects                        (66)               (67)            (73)
  Restructuring                       10                 (4)             (1)
  Stock based                                                               
   compensation                      (20)               (17)            (15)
  Other incidentals                  (10)                (6)            (16)
  Other adjustments                    -                (46)             46 
                          --------------     --------------  -------------- 
Non-GAAP Operating income                                                   
 (loss)                   $          256     $          255  $          215 
                          ==============     ==============  ============== 
                                                                            
GAAP Operating margin               14.3%              10.6%           14.3%
                                                                            
Non-GAAP Operating margin           21.5%              23.5%           19.7%
                                                                            
GAAP Financial income                                                       
 (expense)                $          (46)    $         (152) $         (178)
  Foreign exchange gain                                                     
   (loss) on debt                     32                (53)           (104)
  Gain (loss) on                                                            
   extinguishment of long                                                   
   term debt                         (23)               (37)              - 
  Other financial expense             (8)               (13)             (4)
                          --------------     --------------  -------------- 
Non-GAAP Financial income                                                   
 (expense)                $          (47)    $          (49) $          (70)
                          ==============     ==============  ============== 
                                                                            
GAAP Income tax benefit                                                     
 (provision)              $            2     $          (11) $           (7)
  Other adjustments                   11                 (4)             (2)
                          --------------     --------------  -------------- 
Non-GAAP Cash tax                                                           
 (expense)                $           (9)    $           (7) $           (5)
                          ==============     ==============  ============== 
                                                                            
GAAP Results relating to                                                    
 equity-accounted                                                           
 investees                $            3     $           47  $          (45)
  Other adjustments                    3                 47             (45)
Non-GAAP Results relating                                                   
 to equity-accounted                                                        
 investees                $            -     $            -  $            - 
                                                                            
GAAP Income (loss) from                                                     
 continuing operations    $          129     $           (1) $          (74)
  PPA effects                        (66)               (67)            (73)
  Restructuring                       10                 (4)             (1)
  Stock based                                                               
   compensation                      (20)               (17)            (15)
  Other incidentals                  (10)                (6)            (16)
  Other adjustments                   15  1)           (106)           (109)
                          --------------     --------------  -------------- 
Non-GAAP Income (loss)                                                      
 from continuing                                                            
 operations               $          200     $          199  $          140 
                          ==============     ==============  ============== 
                                                                            
GAAP Income (loss) on                                                       
 discontinued operations                                                    
 - net of tax             $            -     $            -  $            - 
  Other adjustments       $            -                  -               - 
Non-GAAP Income (loss)                                                      
 from discontinued                                                          
 operations               $            -     $            -  $            - 
                                                                            
GAAP Net income (loss)                                                      
 attributable to                                                            
 stockholders             $          111     $          (14) $          (90)
  PPA effects                        (66)               (67)            (73)
  Restructuring                       10                 (4)             (1)
  Stock based                                                               
   compensation                      (20)               (17)            (15)
  Other incidentals                  (10)                (6)            (16)
  Other adjustments                   15               (106)           (109)
                          --------------     --------------  -------------- 
Non-GAAP Net income                                                         
 (loss) attributable to                                                     
 stockholders             $          182     $          186  $          124 
                          ==============     ==============  ============== 
                                                                            
GAAP Weighted average                                                       
 shares - diluted                255,265            249,668         248,272 
  Non-GAAP Adjustment                  -              8,157           5,115 
                          --------------     --------------  -------------- 
Non-GAAP Weighted average                                                   
 shares - diluted                255,265            257,825         253,387 
                          ==============     ==============  ============== 
                                                                            
GAAP Diluted net income                                                     
 (loss) attributable to                                                     
 stockholders per share   $         0.43     $        (0.06) $        (0.36)
Non-GAAP Diluted net                                                        
 income (loss)                                                              
 attributable to                                                            
 stockholders per share   $         0.71     $         0.72  $         0.49 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
1) Includes: During 2Q13: Foreign exchange gain on debt: $32 million; Loss  
 on extinguishment of long-term debt: ($23) million; Other financial        
 expense: ($8) million; Results relating to equity-accounted investees: $3  
 million; and difference between book and cash income taxes: $11 million.   
                                                                            
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 6: Adjusted EBITDA (unaudited)                                        
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)                            Three Months Ended               
                             ---------------------------------------------- 
                              June 30, 2013  March 31, 2013   July 1, 2012  
                             --------------  --------------  -------------- 
                                                                            
                             --------------  --------------  -------------- 
Net Income                   $          129  $           (1) $          (74)
                             ==============  ==============  ============== 
                                                                            
Reconciling items to EBITDA                                                 
  Financial (income) expense             46             152             178 
  (Benefit) provision for                                                   
   income taxes                          (2)             11               7 
  Depreciation                           61              61              62 
  Amortization                           71              71              77 
                             --------------  --------------  -------------- 
EBITDA                       $          305  $          294  $          250 
                             ==============  ==============  ============== 
                                                                            
Reconciling items to                                                        
 adjusted EBITDA                                                            
  Results of equity-                                                        
   accounted investees                   (3)            (47)             45 
  Restructuring 1)                      (11)              4               1 
  Stock based compensation               20              17              15 
  Other incidental items 1)               9               5              15 
  Other adjustments                       -              46             (46)
                             --------------  --------------  -------------- 
Adjusted EBITDA              $          320  $          319  $          280 
                             ==============  ==============  ============== 
                                                                            
Trailing twelve month                                                       
 adjusted EBITDA             $        1,235  $        1,195  $        1,007 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
  1) Excluding depreciation                                                 
   property, plant and                                                      
   equipment related to:                                                    
                                                                            
    Restructuring                         1               -               - 
    Other incidental items                1               1               1