NXP racks up the losses in 2010
NXP Semiconductors provided a snapshot of a tough year for components makers, with losses soaring almost $300 (€222 million) year-on-year.
A $289 million hike in net loss to $456 million despite higher sales revenues – up 25% to $4.4 billion - points to higher production costs, however chief Richard Clemmer said a diversification strategy is paying off in terms of boosting margins.
Non-GAAP operating margin of 19% in the fourth quarter was higher than “the growth of the broader semiconductor market as well as that of our immediate peers,” he noted.
However the 4Q figures are a mixed bag, with loss of $118 million smaller than that in 4Q09, but well down on the $369 million profit of 3Q10.
Troubles in the computing and TV markets – described by Clemmer as “headwinds” – failed to stall strong performances in areas including Identification and Wireless Infrastructure, Automotive, and Lighting and Industrial units, the chief pointed out.
The firm doesn’t expect great things from 1Q11, predicting flat product revenues, and a decline in the figure from Manufacturing Operations and Corporate and Other segments.