NXP Semiconductors N.V. reported financial results for the third quarter 2020, ended Sept. 27, 2020.
Third-quarter revenue was $2.3 billion, up 0.1% year-on-year. Third-quarter GAAP gross margin was 48.1%, and GAAP operating margin was 1.4%. Third-quarter cash flow from operations was $527 million, with net capex investments of $68 million, resulting in non-GAAP free cash flow of $459 million.
“Consistent with our pre-announcement on Oct. 8, our third quarter results were significantly better than our original guidance, reflecting a strong rebound in demand across nearly all of our focus end markets. NXP delivered third quarter revenue of $2.27 billion, flat versus the year ago period, but up 25% on a sequential basis, and about 13% better than the mid-point of our guidance. Because of the higher revenue and good margin fall through, we delivered strong operating profit significantly above our guidance,” said Kurt Sievers, NXP president and CEO.
“More importantly, the momentum which began during the third quarter is continuing into the fourth quarter of 2020. Within our strategic end markets of Automotive, Indus-trial & IoT and Mobile the improving trends are due to a combination of a rebound in our core business, as well as a solid contribution from the ramp of new products. The recover-ing markets along with our strong product portfolio and customer engagements make us confident to continue to deliver robust growth in 2021,” Sievers added.