NXP Semiconductors Reports 2Q 2024 Results

NXP Semiconductors N.V. reported financial results for the second quarter, which ended June 30, 2024.

“NXP delivered quarterly revenue of $3.13 billion, consistent with our guidance, with all our focus end-markets performing in-line with our expectations. With our second quarter results and guidance for the third quarter NXP has successfully navigated the cyclical trough in our businesses and we expect to resume sequential growth. We continue to manage what is in our control enabling NXP to drive resilient profitability and earnings in a challenging demand environment,” said Kurt Sievers, NXP president and CEO.

Key highlights for the second quarter 2024:
• Revenue was $3.13 billion, down 5% percent year-on-year.
• GAAP gross margin was 57.3% percent, GAAP operating margin was 28.7% percent and GAAP diluted net income per share was $2.54.
• Non-GAAP gross margin was 58.6% percent, non-GAAP operating margin was 34.3% percent, and non-GAAP diluted net income per share was $3.20.
• Cash flow from operations was $761 million, with net capex investments of $(184) million, resulting in non-GAAP free cash flow of $577 million.
• During the second quarter of 2024, NXP continued to execute its capital return policy with the payment of $260 million in cash dividends, and the repurchase of $310 million of its common shares. The total capital return of $570 million in the quarter represented 99 percent of second quarter non-GAAP free cash flow.

On a trailing twelve-month basis, capital return to shareholders represented $2.4 billion or 81 percent of non-GAAP free cash flow.
• On April 9, 2024, NXP announced the 5nm S32N55 processor, the first device in the S32N family of vehicle super-integration processors. As the heart of the recently announced S32 CoreRide central compute solution, it offers scalable combinations of safe, real-time and applications processing to address automakers’ diverse central compute needs.
• On June 4, 2024, NXP announced a collaboration with ZF Friedrichshafen AG, a global leader in e-mobility, on next-generation SiC-based traction inverter solutions for electric vehicles (EVs). ZF will adopt NXP’s advanced GD316x high-voltage isolated gate drivers, to accelerate the adoption of 800-V and SiC power devices for next generation all electric vehicles.
• On June 5, 2024, NXP and Vanguard International Semiconductor Corp. (VIS) announced the plan to create a manufacturing joint venture VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC) which will build a new 300mm semiconductor wafer manufacturing facility in Singapore.