Qualcomm buying NXP Semi
NXPI reported its 2Q17 on August 2, which could be one of its last quarterly reports as an independent company—if the deal with Qualcomm closes. This report sheds more light on how NXPI is coping with competition from Cypress Semiconductor (CY), Microchip Technology (MCHP), and Maxim Integrated Products (MXIM) as well as on what Qualcomm is going to get from its acquisition of NXP.
Revenue down 7%, but no problem
NXPI recently reported revenues of $2.2 billion, which was down 7.0% YoY (year-over-year) but slightly above the consensus estimate. Notably, the 7% decline in revenues was not necessarily a result of weak demand for NXPI products or for services during its latest quarter.
This top-line decline was due to a divestment of a revenue asset early this year, resulting in an imbalance in its YoY (year-over-year) top-line comparison.
As for its bottom line, NXPI posted adjusted EPS (earnings per share) of $1.51, which was slightly shy of the consensus estimate of $1.52.
Automotive sales hit record
NXPI’s automotive segment—one of its closely watched businesses—registered growth of 9.0% and hit record sales of $938 million in 2Q17. The management attributed this top-line milestone to the continued demand for NXPI’s automotive solutions.