SAN FRANCISCO Freescale Semiconductor posted a net loss of $484 million on revenue of $824 million for the quarter ended July 3, but the company's top executive said the firm continues to make solid progress on its ongoing restructuring and goal of returning to sustainable profitability.
Rich Beyer, Freescale chairman and CEO, said he was pleased with the firm's performance in the second quarter, touting sequential product revenue growth of 3 percent, reduction of inventory and a smaller adjusted operating loss. Beyer said Freescale has "seen a stabilization of the business" and expects sales to increase by a "low-to-mid" single-digit percentage in the third quarter.
"This transformation we are going through is positive," Beyer said.
The net income of $484 million compares to a first quarter net income of $1.8 billion, which was achieved through a $2.3 billion gain on the elimination of a portion of its long-term debt, and a net loss of $184 million in the second quarter of 2008.
Freescale (Austin, Texas) reported a second quarter loss from operations of $345 million, including $82 million in reorganization costs, compared to a loss of $351 million in the first quarter of 2009 and a loss of $137 million in the second quarter of 2008.
The adjusted operating loss, excluding charges, was $75 million, Freescale said, compared to $140 million in the first quarter. The company reported an adjusted operating income of $234 million in the second quarter of 2008.
Second quarter net sales declined to $824, Freescale said, down 2 percent from the first quarter and down 44 percent from the same period of 2008. Freescale attributed the year-to-year sales decline primarily to its 2008 decision to exit the cellular chips business, as well as a decline in sales to the automotive industry.