Q2 2024 NXP Semiconductors NV Earnings Call Transcript
Key Points
- NXP Semiconductors NV (NXPI) reported Q2 revenue of $3.127 billion, which was in line with the midpoint of their guidance range.
- The company achieved a non-GAAP operating margin of 34.3%, which was 30 basis points above the midpoint of their guidance.
- Revenue in the industrial and IoT segment increased by 7% year-over-year, driven by demand in China and Asia-Pacific.
- The mobile segment saw a significant revenue increase of 21% year-over-year.
- NXP Semiconductors NV (NXPI) announced a strategic joint venture with Vanguard International Semiconductor to build a 300-millimeter fab in Singapore, enhancing their manufacturing capabilities and geographic resilience.
- Overall Q2 revenue was down 5% year-over-year, indicating a decline in sales.
- The automotive segment experienced a 7% year-over-year revenue decline, impacted by inventory digestion at Tier 1 customers.
- The communications infrastructure and other segment saw a significant 23% year-over-year revenue decline.
- The company expects continued weakness in core industrial demand in Europe and the Americas.
- Inventory digestion at Tier 1 automotive customers is taking longer than initially expected, extending into the second half of 2024.
Good day, and welcome to the NXP 2Q '24 earnings conference call. (Operator Instructions) As a reminder, this call may be recorded.
I would like to turn the call over to Jeff Palmer, Senior Vice President of Investor Relations. Please go ahead.
Thank you, Michelle, and good morning, everyone. Welcome to NXP Semiconductors second-quarter earnings call. With me on the call today is Kurt Sievers, NXP's President and CEO; and Bill Betz, our CFO. The call today is being recorded and will be available for replay from our corporate website.
Today's call 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 the specific end markets in which we operate, the sale of new and existing products, and our expectations for the financial results for the third
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