LONDON — The board of directors of NXP BV, formerly Philips Semiconductor, said the company's fourth quarter results would be weaker than normal seasonality would suggest due to a softening of the semiconductor business cycle.
The board gave the guidance as it presented NXP's financial results for the 9 months to Sept. 29, 2006, the point at which it was separated from Royal Philips Electronics and came under the ownership of a private equity consortium .
"Usually we see revenue peaking in the fourth quarter of the year. Due to a softening of the cycle in the semiconductors industry we expect that the seasonal effect of the fourth quarter will not be as visible in 2006 as it was in the previous year," the board said.
"This is also reflected in our book to bill ratio, which declined from 1.07 at the end of the second quarter to 0.92 at the end of the third quarter of 2006," it added in a statement.
However, the board went on to express confidence that the NXP business portfolio is well positioned and that the company would continue to benefit from a business renewal program.