NXP reports better-than-expected Q3, unveils new 2×2 Wi-Fi 6+Bluetooth family of products
October 9, 2020
NXP Semiconductors reported better-than expected results for the third quarter, lifted by better demand across all of the company’s markets but in particular at Automotive and Mobile. “The business environment has improved at a faster than anticipated pace,” CEO Kurt Sievers said, saying this pushed up revenues and gross margins. As a result, the company has increased operating expenses and incentive compensation.
Preliminary revenues reached USD 2.267 billion, flat year-on-year but 25 percent higher sequentially. The gross margin went to 48.1 percent from 52.4 percent the year before, the operating profit to USD 32 million from 233 million, and the adjusted operating profit to USD 586 million. Operating expenses meanwhile amounted to USD 1.059 billion.
The guidance had been for revenues of USD 1.9-2.1 billion, a gross profit margin of 46.4-48.5 percent, an operating result going from a loss of USD 105 million to a gain of USD 12 million, and an adjusted operating profit of USD 386-503 million.
NXP also announced a new family of 2×2 Wi-Fi 6 Dual Band+Bluetooth/BLE products for advanced gaming, audio, industrial and IoT markets. The IW62X family of products will enable the world’s first Wi-Fi 6 enabled gaming console but can also be used for smart consumer IoT hubs, wireless speakers, video-enabled smart devices, augmented and virtual reality devices and other IoT applications.
The new products are now available for sampling and will soon launch at select module partners.