NXP heads toward growth: Mobile payment, IoT, V2V on a roll
NXP Semiconductors has reported its 1Q15 total revenue with an increase of 17.7 per cent over the same period a year ago, which is now pegged at $1.47 billion. NXP CEO Richard Clemmer attributed the Q1 results to the company’s “better product mix, which drove better profitability.” NXP’s non-GAAP operating margin in Q1 was 26 per cent.
A merger of NXP and Freescale is expected in 2H15. Clemmer confidently spoke of significant integration planning already under way. This “should assure a successful Day One execution of the merger,” he said.
NXP is also likely to have a buyer for its RF power business in the next few months. Due to the sheer size of the two companies’ combined RF power business, Clemmer had previously talked about selling NXP’s RF power business in order to meet regulatory guidelines.
NXP CEO Richard Clemmer
NXP has received interest from “quite a number of entities,” said Clemmer. “We’veVolumetric Efficiency actually narrowed that down and have entered a process to try to get to an agreement here over the next couple of months.”
NXP divides the company’s business into five product categories, including automotive, secure identification solutions, secure connected devices, secure interfaces and power, and high-performance mixed signal and standard products.