Freescale Releases 2012 Q2 Financisal Results

GAAP Results:
-Net sales of $1.03 billion
-Gross margin of 42.8%
-Operating earnings of $112 million
-Loss per share of $.14

Non-GAAP Results
-Adjusted operating earnings of $136 million
-Adjusted net earnings per share of $.07

“Second quarter results showed sequential improvement, with eight percent sales growth and contribution from our automotive, networking, consumer and industrial businesses,” said Gregg Lowe, president and CEO. “We also improved gross margin and added to our cash balance in the quarter.”

Second Quarter Highlights:

Net sales for the second quarter of 2012 were $1.03 billion, compared to $950 million in the first quarter of 2012 and $1.22 billion in the second quarter of last year.

Income from operations for the three months ended June 29, 2012 was $112 million, compared to $168 million in the first quarter of 2012 and $31 million in the second quarter of 2011.

The net loss for the second quarter of 2012 was $34 million, or $.14 per share, compared to a loss of $9 million, or $.04 per share, in the first quarter of 2012 and a loss of $168 million, or $.79 per share, in the second quarter last year.

Adjusted operating earnings (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) for the three months ended June 29, 2012 were $136 million, compared to earnings of $119 million in the first quarter of 2012 and $216 million in the second quarter of 2011.

Adjusted net earnings (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) for the three months ended June 29, 2012 were $17 million, or $.07 per share, compared to a loss of $9 million, or $.04 per share, in the first quarter of 2012 and earnings of $70 million, or $.33 per share, in the second quarter of 2011.

Descriptions of EBITDA, Adjusted EBITDA, adjusted operating earnings (loss), adjusted net earnings (loss) and the reconciliations to our GAAP results are included in the tables and notes attached to this press release.

The company’s net sales figures for the second quarter were as follows:
=AISG (which includes our microcontroller, analog and sensor products) net sales were $568 million, compared to $527 million in the first quarter of 2012 and $634 million in the second quarter of 2011.
=NMSG (which includes our networking processors, applications processors and radio frequency products) net sales were $335 million, compared to $317 million in the first quarter of 2012 and $423 million in the second quarter of 2011.
=Cellular net sales were $50 million, compared to $66 million in the first quarter of 2012 and $122 million in the second quarter of 2011.
=Other net sales (which includes intellectual property and foundry revenue) were $76 million, compared to $40 million in the first quarter of 2012 and $44 million in the second quarter of 2011.

Other Financial Information:
-Capital Expenditures were $35 million;
-Cash and Cash Equivalents were $881 million;
-EBITDA was $192 million; and
-Adjusted EBITDA* for the latest twelve months ending June 29, 2012 was $1.02 billion

Third Quarter 2012 Outlook:
For the third quarter of 2012, the company expects:
-Net sales to be between $955 million and $1.005 billion;
-Gross margins to decrease approximately 75 basis points on a sequential basis