LONDON — NXP BV, formerly Philips Semiconductors, said it made a net profit of 2 million euro (about $2.6 million) on total sales of 3.77 billion euro (about $4.97 billion) in the first nine months of 2006.
Total sales in the nine months ended Sept. 28, 2006, increased 10.6 percent compared to the same period in 2005 although this was partly due to foreign currency effects.
Excluding those sales increased by 9.7 percent, NXP said. Sales growth was particularly strong in the multimarket group and the automotive and identification business units, NXP said.
Research and development expenses were 737 million euro (about $970 million), compared to 754 million euro (about $990 million) last year, a decrease of 2.3 percent.
Income from operations was 146 million euro (about $190 million), representing 3.9 percent of total sales, compared to a loss of 35 million euro (about $45 million) in the same period of 2005.
Net income improved from a net loss of 132 million euro (about $175 million) in the first nine months of 2005 to a profit of 2 million euro (about $2.6 million) in the reporting period.
"We have made good progress in NXP. Our move outside Philips has helped us to accelerate our business. Our Income from Operations is higher and more predictable, our portfolio is more focused, and we have achieved visible sales growth," said Frans van Houten, president and chief executive officer of NXP, in a statement.