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Baolt
Indeed the reason for NXP's capacity shortage mainly caused by cut-offs. Up to ...
daleste
The cycle in semicoductors causes this issue. The stronger companies put on ...
NXP profits in Q2, capacity is limited
Peter Clarke
8/17/2010 5:35 AM EDT
LONDON – NXP BV, the former semiconductor business of Koninklijke Philips Electronics NV, posted a profit for the second quarter of 2010 on strong sales growth and exceeded analysts' expectations. However, even though the company is concluding a substantial restructuring program it is running flat out in terms of manufacturing capacity and is predicting flat sequential sales in the third quarter.
NXP (Eindhoven, The Netherlands), which undertook an initial public offering of shares earlier this month, made a net income of $93 million on revenue of $1,201 million in the second quarter, ended June 30. Sales were up 6.5 percent compared to the first quarter of 2010 and up by 43.6 percent compared with the same quarter a year before. The net income of $93 million compared to a loss of $217 million in the second quarter of 2009 and breakeven in the first quarter of 2010.
NXP's cash position at the end of the second quarter of 2010 was $842 million compared to $870 million at the end of the first quarter of 2010.
"The increased success in winning new designs in high performance mixed signal combined with the improved economic environment together with our ability to quickly ramp up production to meet higher demand from our customers has been key to our 62 percent comparable growth from last year in high performance mixed signal," said Rick Clemmer, CEO of NXP, in a statement.
The company said that while demand remains strong across the broad base of customers there are signs of some slowing in specific areas. Nonetheless, overall demand exceeds NXP's ability to supply and while additional capacity is being put in place it is not expected to impact the third quarter. As a result NXP is predicting flat sales in Q3 on a sequential basis, an increase of 20 to 25 percent on a year over year basis.
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daleste
8/17/2010 9:12 AM EDT
The cycle in semicoductors causes this issue. The stronger companies put on additional capacity in anticipation of this upturn and will be able to meet more of the demand and capture additional market share. They will also experience more pain in the next inevitable downturn with more capital payments and more idle equipment. It is a very tough managment task to navigate through these cycles. The product mix causes additional issues. Enjoy the good times and try to coast through the bad.
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Baolt
8/24/2010 11:02 AM EDT
Indeed the reason for NXP's capacity shortage mainly caused by cut-offs. Up to now they closed 3 big factories, in US,EU in order to decrease costs however there were no visionary admin. who could foresee imminent boom times. Now capacity constraint is big problem and they should put all efforts to avoid further troubles related if not as a consequence they will face lots of order cancellations as cant fulfill demand on time.
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