NXP Semiconductors NV (NASDAQ:NXPI) Q2 2016 Earnings Conference Call - Final Transcript

Jul 28, 2016 • 09:00 am ET


NXP Semiconductors NV (NASDAQ:NXPI) Q2 2016 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the NXP Semiconductors Second Quarter 2016 Earnings Conference Call. [Operator Instructions]

I would like to introduce your host for today's conference, Mr. Jeff Palmer, Vice President of Investor Relations. Sir, you may begin.

Jeff Palmer

Thank you, Trea and good morning to everyone. Welcome to the NXP Semiconductors' second quarter 2016 earnings conference call. With me on the call today is Rick Clemmer, NXP's President and CEO, and Dan Durn, our CFO. If you've not obtained a copy of our second quarter 2016 earnings press release, it can be found at our company website under the Investor Relations section at nxp.com.

Additionally, we have posted on our Investor Relations website a supplemental earnings summary presentation and a document of our historical financials to assist in your modeling efforts. Included in this supplemental presentation and the historical financial model is additional information providing insight into the combined adjusted revenue for NXP and Freescale. This unaudited non-GAAP information has been prepared for comparative purposes only and provides historical revenue of each of the company's adjusted for divestitures. Please be aware of the disclosures associated and detailed in both documents.

This call is being recorded today and will be available for replay from our corporate website. Our call today will include forward-looking statements that involve risks and uncertainties that could cause NXP's results to differ materially from management's current expectations. These risks and uncertainties include, but are not limited to, statements regarding the macroeconomic impact on specific end markets in which we operate, the sale of new and existing products, and our expectations for the financial results for the third quarter of 2016. Please be reminded that NXP undertakes no obligation to revise or update publicly any forward-looking statements. For a full disclosure on forward-looking statements, please refer to our press release today.

Additionally, during our call today we will make reference to certain non-GAAP financial measures which exclude the impact of purchase price accounting, restructuring, stock based compensation, impairment, merger-related costs and other charges that are driven primarily by discreet events that management does not consider to be directly related to NXP's underlying core operating performance.

Pursuant to Regulation G, NXP has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures in our second quarter 2016 earnings press release, which will be furnished to the SEC on Form 6-K and is available on NXP's website in the Investor Relations section at nxp.com.

I'd like to now turn the call over to Rick.

Richard Clemmer

Thanks, Jeff. And welcome everyone to our earnings call today. NXP finished Q2 with solid performance. Revenue was up 6% sequentially and most business lines delivering better than planned results. We drove strong earnings growth as a result of positive fall through on the incrementally higher revenue and good operating expense control.

Looking at the specifics, revenue in Q2 was $2.37 billion, an increase of 57% year on year, an increase of just over 6% versus the prior quarter. This