NXP Semiconductors (NASDAQ: NXPI) reported Q4 revenue for the quarter came in at $2.3 billion versus the consensus estimate of $2.28 billion.

“NXP delivered full-year revenue of $8.88 billion, a decline of 6 percent year-on-year, against a very challenging semiconductor industry backdrop. As we look forward to 2020, we are increasingly confident that the demand trends within our end markets are beginning to moderately improve. Notwithstanding the operating environment we experienced in 2019, NXP drove improved profitability, strong free cash flow generation, and continued to successfully execute our strategy within our target markets. During 2019, we returned $1.76 billion to our shareholders. Over the course of the year, we significantly enhanced our product portfolio. We successfully acquired the Marvell wireless connectivity assets, and introduced new, innovative products and solutions. Our customers have already begun to adopt many of these new solutions, and as they continue to ramp into volume production, we anticipate new products will help to underpin NXP’s long-term growth, financial and capital return targets,” said Richard Clemmer, NXP Chief Executive Officer.

Key Highlights

• Fourth-quarter revenue was $2.3 billion, down 4 percent year-on-year;
• Fourth quarter GAAP gross margin was 52.5 percent, and GAAP operating margin was 8.6 percent;
• Fourth-quarter non-GAAP gross margin was 54.2 percent, and non-GAAP operating margin was 29.9 percent;
• Full-year cash flow from operations was $2.37 billion, with net capex investments of $503 million, resulting in non-GAAP free cash flow of $1.87 billion;
• On November 19, 2019, the NXP Board of Directors approved the payment of an interim dividend for the fourth quarter 2019 of $0.375 per ordinary share. Additionally, the NXP Board of Directors authorized to resume the share buy-back program in 2020, authorizing up to $2 billion of share repurchases to be executed at times and manners determined by the company management;
• On December 2, 2019, NXP retired the $1.15 billion outstanding principal amount of the 1.0% Cash Convertible Senior Notes at maturity;
• On December 6, 2019, NXP announced the completion of the acquisition of the wireless connectivity assets of Marvell, pursuant to the terms of the previously announced agreement from May 2019;
• In 2019 NXP, returned $1.76 billion to shareholders through previously announced share repurchases and dividend payments.

GUIDANCE:

NXP Semiconductors sees Q1 2020 revenue of $2.195-2.255 billion, versus the consensus of $2.17 billion.

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