NXP Semiconductors NV (NASDAQ:NXPI) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 08:00 am ET


NXP Semiconductors NV (NASDAQ:NXPI) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Fourth Quarter 2018 NXP Semiconductors Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) And as a reminder, this conference is being recorded.

I would now like to hand the call over to Mr. Jeff Palmer, Vice President of Investor Relations. You may begin.

Jeff Palmer

Thank you, Amanda, and good morning, everyone. Welcome to the NXP Semiconductors fourth quarter and full year 2018 earnings call. With me on the call today is Rick Clemmer, NXP's CEO; Kurt Sievers, NXP's President; and Peter Kelly, our CFO. If you've not obtained a copy of our earnings press release, it can be found at our company website under the Investor Relations section at nxp.com. This call is being recorded and will be available for replay from our corporate website.

On our call today we'll 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 the specific end markets in which we operate, the sale of new and existing products and our expectations for financial results for the first quarter of 2019. 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.

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 discrete 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 most directly comparable GAAP measures in our fourth quarter 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.

Before we begin the call today, I'd like to remind you that beginning January 1, we have shifted our revenue reporting to an end market view from an operating segment approach. We believe this change overtime will enhance the insight into the drivers of our business relative to the markets in which we operate. The current and historical end market information is available from our Investor Relations website in the historical financial model which we post every quarter.

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

Richard L. Clemmer

Thanks, Jeff, and welcome, everyone, to our conference call. On today's call, I would like to cover three major themes; our full year financial performance, our view of the market environment in which we operate, and then the specifics around our fourth quarter performance. Overall, looking at 2018 our revenue was $9.4 billion, an increase of 2% year-on-year. The drivers of