NXP Semiconductor slashes debt by $1.3 billion year to date

By Lisa Kerner

Charlotte, N.C., Oct. 23 - NXP Semiconductor reduced its debt by $814 million in the third quarter and by $1.3 billion for the year, Rick Clemmer, NXP's chief executive officer, said during the company's quarterly earnings conference call on Friday.

The company's annual interest expense is expected to be about $300 million, down from $500 million in 2008, he said.

At Sept. 30, NXP had cash of $1.06 billion, compared with $1.37 billion at the end of the second quarter of 2009, due mainly to the bond repurchases in the third quarter and ongoing restructuring payments under the company's redesign program, according to NXP.

NXP's third-quarter sales were $1.03 billion, versus $1.2 billion in the same period of 2008.

The company reported net income for the quarter of $412 million, compared with a loss of $2.5 billion in the prior-year period and a $344 million profit in the second quarter of 2009.

Clemmer, during the call, highlighted three recent announcements by the company.

On Oct. 5, NXP and Trident Microsystems, Inc. agreed to combine their digital TV and set-top box businesses.

NXP said it will purchase approximately 6.7 million newly issued Trident shares for $4.50 each, giving Trident proceeds of $30 million.

Clemmer said the transaction is expected to close in the first quarter of 2010.

Trident Microsystems, based in Santa Clara, Calif., is a designer of integrated circuits for the digital television market.

Virage Logic Corp. and NXP announced a strategic alliance on Oct. 12 in which NXP will transfer a part of its advanced CMOS intellectual property rights and other equipment to Virage Logic in exchange for stock.

The deal is slated to close by the end of the fourth quarter.

Virage Logic is a Fremont, Calif.-based supplier of IP platforms to the semiconductor industry.

NXP also announced on Friday the appointment of Kurt Sievers as general manager for the automotive business and Frans Scheper as general manager for the standard products business.

Both Sievers and Scheper will report to Clemmer.

NXP is an Eindhoven, the Netherlands-based semiconductor company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.