NXP: Profits slump in 2Q, market still “soft”

July 24, 2007 – NXP Semiconductors says fiscal 2Q07 sales were about 1.14 billion euros, up 4% sequentially but down nearly 5% year-on-year. Profits sunk to 7 million euros vs. 64 million euros in 1Q, though better than 3 million euros reported in 2Q06. Much of the decline came from the company’s home business, impacted by end-market transition from analog to digital TVs, and a discontinued DVD-R product line the company noted. IC manufacturing utilization rates slipped to 74% (vs. 85% a year ago)

The company still sees “continuing softness” in the overall marketplace, though the company’s multimarket chips unit “outpaced the market,” noted Frans van Houten, president and CEO, in a statement. The 2Q B:B ratio of 1.02 will translate into “low- to mid-single-digit sequential sales growth” in 3Q07.


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