NXP Semiconductors Announces 2Q 2007 Results

NXP Semiconductors has announced its second quarter 2007 results. Sales for the quarter amounted to about 1.14 billion euros, a 4.1 percent currency comparable growth over the first quarter of 2007 (nominal 2.3 percent) and a 4.8 percent decline over the second quarter of 2006. Excluding the impact of Purchase Price Accounting, adjusted EBITA was 7 million euros compared to 64 million euros in the second quarter of 2006 and 3 million euros in the first quarter of 2007.

Frans van Houten, President and CEO of NXP Semiconductors, commented: "Although sales increased in line with our forecast, we still see continuing softness of the overall marketplace. We are making good progress in addressing the underlying issues in our largest Business Unit, Mobile & Personal, where a combination of new management, the successful integration of the recently acquired Silicon Labs Wireless operations, and a focusing of the product portfolio have been well received by our customers. We are addressing the performance of the Home Business Unit through several measures, while our Automotive & Identification Business Unit continues to maintain leadership positions. Sales in the MultiMarket Semiconductors Business Unit outpaced the market."

"Our Business Renewal II Programme is expected to exceed the 250 million euros of cost savings achieved in the first phase of Business Renewal. About 100 million euros of these savings are expected to be realized on a run rate basis by the end of 2007, following the acceleration of actions in the first half of this year. In addition, we continued to actively manage our portfolio, notably with the combination of our Cordless and VoIP Terminals operations with the DSP Group, which we expect to close in the third quarter."

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