NXP Semiconductors NV (NASDAQ: NXPI) stock lost over 2.7% in the pre market session on feb 7th, 2019 (Source: Google finance). The company has reported 2% fall in the fourth-quarter revenue to $2.4 billion. Demand has weakened for the first quarter, primarily in the automotive and industrial end-markets in China.
NXP has delivered more than 5 percent growth in Auto and Secure Connected Devices, resulting in total revenue of $9.41 billion, an increase of 2 percent year-on-yearFull-year cash flow from operations was $4.37 billion, with net capex investments of $610 million, resulting in non-GAAP free cash flow of $3.76 billion
During the fourth quarter of 2018 NXP had repurchased 5 million shares for a total cost of $393 million. The weighted average number of diluted shares for the three-month period ended December 31, 2018 was 295 million, a reduction of 52 million shares as compared to the fourth quarter of 2017. In 2018 NXP returned $5.08 billion to shareholders through previously announced share repurchases and dividend payments, reducing the diluted share count by 15 percent or 52 million shares.
Cash paid for income taxes related to on-going operations was $29 million. The items not related to on-going operations resulted in additional cash payments of $32 million, which was mainly due to the divestment of the Standard Products business.
For the first quarter 2019, NXPI expects the non-GAAP revenue to be in the range of $2020-$2160. Gross Profit is expected to be in the range of $1043-$1145.
Meanwhile, NXPI has recently announced a new strategic partnership with Kalray, which is a pioneer in processors for new intelligent systems. The partnership will combine NXP’s scalable portfolio of functional safety products for ADAS and Central Compute with Kalray’s high-performance intelligent MPPA® (Massively Parallel Processor Array) processors. The new platform is significant because it addresses the performance, safety and near-term commercial needs of levels 2 and 3 driving with an eye to longer-term release in level 4 and 5 autonomous vehicles. The collaboration also aims to take on the safety shortcomings of today’s pilots and experimental offerings in the autonomous development space. NXP and Kalray have joined forces in a partnership to co-develop a central computing platform with safety as a foundation. NXP will offer the host processor of the platform, its high-performance S32 processor, with its safety critical ASIL D and ASIL B capabilities. This will help the platform tackle the requirements of automotive central computing and will target path planning functions.