In our modern world, companies are more interested in what the public thinks about their company. This is because it is the public that determines the net worth of a company regardless of whether it is technically superior or not.
No question, the CEO is bent on painting a positive picture of NXP - even though it is riddled with debts on which interests of about $300 million are paid annually.
Well they have just raised about $476 million which should pay off part of these loans. The thing is, the 34 million shares they sold, theoretically cost them about $114 million.
Now all they have to do is wait and see if these kind investors will drive the prices higher so they can enrich themselves further.
NXP isn't the only company cautiously hiring. In some respect, chip vendors and other IT equipment vendors have been much more active in raising capital expenditure and payroll than other segments of the economy. Not that they are jacking up employment themselves but the situation is better than in other manufacturing sectors. Can you blame manufacturers for the guarded optimism?
When companies begin to make their cases and explanations on the pages of newspapers instead of design labs, you can be sure they have confidence and focus. This company must get its mojo back if it hopes to succeed. There is nothing in its strategy that hows that it can compete. It carries lots of costs and must learn to be lean.
NXP is a company that needs to get its cost of operations under control. This inefficiency is the biggest obstacle to them becoming a major player in the markets.
I hope the $250 to $300 million in 'redesign' savings stated by the CEO is meant to reduce the huge operational costs and not the loans.
Blog That A-Ha Moment Larry Desjardin 11 comments Have you ever had an a-ha moment? Sure, you have. The Merriam-Webster dictionary defines it as "a moment of sudden realization, inspiration, insight, recognition, or ...