Mixed signal solutions provider NXP Semiconductors NV (NXPI) reported Thursday a loss for the fourth quarter that widened from last year, reflecting significant drop in margins and lower revenues. The company's shares rose nearly 6 percent in extended trading after it said it expects a profit for the first quarter, with revenues projected to be nearing a billion dollars.
"During the fourth quarter NXP delivered revenue of $931 million, essentially in-line with the mid-point of our original guidance. We are cautiously optimistic that our customers and channel partners have made major progress in the process of aligning their on-hand inventory to end-market demand. While the broader macro-environment continues to be uncertain, we are encouraged by the somewhat improved order rates so far into the current quarter," CEO Richard Clemmer said in a statement.
The Eindhoven, Netherlands-based company reported a net loss of $182 million or $0.73 per share for the fourth quarter, wider than $118 million or $0.47 per share in the year-ago quarter.
Excluding items, adjusted net income for the quarter declined to $59 million or $0.24 per share from $95 million or $0.37 per share in the prior-year quarter.
Loss from continuing operations for the quarter also widened to $75 million or $0.74 per share from $107 million or $0.51 per share last year.
Total revenues for the quarter dropped 13.6 percent to $931 million from $1.08 billion in the same quarter last year.
Product revenue declined 8.6 percent to $857 million from last year, and manufacturing and other revenues plunged 47.1 percent to $74 million from the year ago.
Operating margin for the quarter contracted 900 basis points to 0.8 percent from a year ago, and gross profit margin also dropped 410 basis points to 41,8 percent from last year.
For fiscal 2011, the company posted a net income of $390 million or $1.57 per share, compared to a net loss of $456 million or $1.99 per share in the prior year.
Excluding items, adjusted net income for the year surged to $432 million or $1.71 per share from $298 million or $1.28 per share in the prior year.
Income from continuing operations for the year was $2 million, compared to loss of $465 million last year, but loss per share sharply widened to $2.25 per share from last year's or $0.17 per share.
Total revenues for the full year dropped 4.7 percent to $4.19 billion from $4.40 billion in the previous year.
Looking ahead to the first quarter of fiscal 2012, the company expects adjusted earnings in a range of $0.10 to 0.24 per share, on projected revenues between $927 million and $984 million.
"Additionally, several NXP-specific design opportunities, across our entire product portfolio are coming into clearer focus, which should enable the company to outperform the market growth in 2012," Clemmer added.
NXPI closed Thursday's regular trading session at $21.99, up $0.11 or 0.50% on a volume of 1.08 million shares. The stock surged a further $1.31 or 5.96% in after-hours trading.
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