Despite failed Qualcomm takeover NXP grows in the 2nd quarter, but weaker than the competition

Platz 4: Richard L. Clemmer (NXP)
NXP's CEO Richard L. Clemmer regretted Qualcomm's failed acquisition.

Dutch chip manufacturer NXP increased sales in the second quarter of its 2018 fiscal year despite market uncertainty in the context of the failed acquisition by Qualcomm - although less than its direct competitors.

NXP was able to increase its turnover by 4 % compared to Q2/2017 to 2.29 billion dollars. However, the net profit was a comparatively modest 66 million dollars. The Automotive division grew by 7% in terms of sales, Secure Identification Solutions also by 7%, Secure Connected Devices even by 10%, while the Secure Interface & Infrastructure (SI&I) division recorded a decline of 9%.

As in the last 4 quarters, however, NXP was able to grow less than its direct competitors: Texas Instruments was pleased about 9 % more turnover and ST Microelectronics even by 18 % compared to the same quarter of the previous year. Infineon will not present its figures until August 1. In addition, ST generated a net profit of $261 million and in particular TI of $1.4 billion in net profit, significantly higher returns on sales than NXP.

Commenting on the failure of Qualcomm's acquisition, CEO Rich Clemmer said: "Although it is unfortunate that the semiconductor powerhouse resulting from the transaction with Qualcomm could not be closed after 21 months of good team work, we are confident about our future as an independent market leader and will continue to focus on driving our long-term strategy in our leading markets for automotive and secure IoT solutions.”

Clemmer also confirmed Qualcomm's payment of the $2 billion exit fee.

For the third quarter NXP expects a turnover between 2.35 and 2.5 billion dollars. The share price lost 5.65% to 92.81 dollars.