With a revenue of $2.21 billion, NXP delivered good seasonal results for the first quarter of 2017, said Richard Clemmer, NXP Chief Executive Officer. It still means a decline of 1 percent year on year, and a decline of 9 percent versus the prior quarter, with period comparisons impacted by the divestment of the Standard Products business in early February.
Clemmer: “Our first quarter performance reflects a confirmation of a return to our annual growth trajectory. HPMS segment revenue was $2.01 billion, an increase of 5 percent year on year and a decline of two percent sequentially. Standard Products segment revenue was $118 million, representing approximately one month of revenue contribution prior to the close of the divestment.”
“Due to the disciplined focus by the entire NXP team, we were able to deliver better than anticipated financial results.”Richard Clemmer, NXP
Within the Automotive group, NXP’s first quarter revenue showed a historical record at $906 million, up 13 percent year on year due to strong demand across the entire product portfolio, with the automotive microcontroller and analog products continuing to experience traction. Within the Secure Connected Devices group, the first quarter revenue was $541 million, up 15 percent year on year. Clemmer: “All major product lines contributed to a solid quarter, especially demand for our i.MX application processor products. In the Secure Interface and Infrastructure group, our first quarter revenue was $450 million, up 6 percent year on year, with very strong growth in our Interface group, offset by flattish trends in RF Power and continued headwinds in the Digital Networking group which was restructured late last year.”
In the Secure Identification Solutions group, the first quarter revenue was $114 million, down 46 percent versus the same period a year ago.
“In summary, our first quarter results are another solid step towards the successful integration of Freescale and NXP. With the divestment of our Standard Products group, our overall product portfolio has a sharpened focus on the higher growth, desirable margins, and stickier market segments. The revenue performance of our Auto, Application Processor, General Purpose MCU and Interface groups is especially encouraging as design win trends indicate our go-to-market and portfolio decisions are well aligned with our customer’s long-term requirements,” said Clemmer. “Due to the disciplined focus by the entire NXP team, we were able to deliver better than anticipated financial results during the first quarter. Our results reflect strong execution notwithstanding normal seasonal operating expense headwinds, in addition to the stranded costs associated with the divestment of our Standard Products group, which we discussed when we announcement the action in June of 2016.”
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