NXP sales up 9% in 2006, 1Q07 looks weak

March 26, 2007 – NXP Semiconductors says it raked in profits of 325 million euros before earnings and charges, up 16% from 2005, on 9% higher sales of 4.96 billion euros, though it sees a weak market for 1Q07 due to seasonal patterns.

The company said it saw “strong annual growth” in its multimarket semiconductor and automotive & identification business units, with year-on-year growth in overall sales and EBITDA, and the company achieved 250 million euros in annual cost reductions. NXP also said the acquisition of Silicon Labs’ wireless division was completed on March 23, and integration “is well in progress.”

Following an “overall weakened semiconductor market” at the end of 2006, along with typical seasonal slowness, NXP forecasts a 6%-9% sales decline in 1Q07 vs. 4Q06, with a book-to-bill ratio of about one.


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