NXP delivered second-quarter revenue of $2.6 billion, an increase of 43% versus the year-ago period, and better than the mid-point of our guidance.
“The company continues to be very positive about the long-term demand trends across all end markets, and while the supply environment will remain challenging in the near term the company has taken actions to increase supply which underpin our confidence to drive very robust growth for the remainder of 2021, as well as into 2022,” said Kurt Sievers, NXP President and Chief Executive Officer.
Key Highlights for the Second-quarter:
Revenue was $2.6 billion, up 42.9% year-on-year;GAAP gross margin was 54.8%, and GAAP operating margin was 22.1%;
Non-GAAP gross margin was 56.1%, and non-GAAP operating margin was 32.0 percent;
Cash flow from operations was $636 million, with net capex investments of $150 million, resulting in non-GAAP free cash flow of $486 million;
Capital return of $1.4 billion to shareholders through previously announced share repurchases and dividend payments.
Subsequent to the end of the second quarter, between July 5, 2021 and August 2, 2021, NXP executed via a 10b5-1 program additional share repurchases totaling $1.0 billion.On May 27, 2021, the NXP Board of Directors approved the payment of an interim dividend for the second quarter 2021 of $0.5625 per ordinary share;\
On May 11, 2021, NXP issued unsecured notes for a total amount of $2 billion. The amount is split into two notes: a green bond of $1 billion that matures in 2031 and $1 billion maturing in 2041. Net proceeds were $1,978 million.Summary of Reported Second Quarter 2021 ($ millions, unaudited) (1)
Q2 2021 Q1 2021 Q2 2020 Q – Q Y – Y
Total Revenue $2,596 $2,567 $1,817 1% 43%
GAAP Gross Profit $1,422 $1,355 $860 5% 65%
Gross Profit Adjustments (i)$(34) $(37) $(32)
Non-GAAP Gross Profit$1,456 $1,392 $892 5% 63%
GAAP Gross Margin. 54.8% 52.8% 47.3%
Non-GAAP Gross Margin 56.1% 54.2% 49.1%
GAAP Operating Income / (Loss)$573 $492 $(145) 16% 495%
Operating Income Adjustments (i)$(257) $(300) $(521)
Non-GAAP Operating Income$830 $792 $376 5% 121%
GAAP Operating Margin. 22.1% 19.2%(8.0)%
Non-GAAP Operating Margin32.0% 30.9% 20.7%
About NXP Semiconductors NXP Semiconductors N.V. (NASDAQ: NXPI) enables secure connections for a smarter world, advancing solutions that make lives easier, better, and safer. As the world leader in secure connectivity solutions for embedded applications, NXP is driving innovation in the automotive, industrial & IoT, mobile, and communication infrastructure markets.
Built on more than 60 years of combined experience and expertise, the company has approximately 29,000 employees in more than 30 countries and posted revenue of $8.61 billion in 2020. Find out more at www.nxp.com. Forward-looking Statements
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