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Mobile payment, IoT, V2V drive NXP revenue to $1.5B

Posted: 04 May 2015     Print Version  Bookmark and Share

Keywords:NXP Semiconductors  Apple Pay  mobile payment  IoT  V2V 

NXP Semiconductors has announced its 1Q15 total revenue that climbed 17.7 per cent over the same period a year ago, which is now valued at $1.47 billion. NXP CEO Richard Clemmer attributed the Q1 results to the company's "better product mix, which drove better profitability." NXP's non-GAAP operating margin in Q1 was 26 per cent.

A merger of NXP and Freescale is expected in 2H15. Clemmer confidently spoke of significant integration planning already under way. This "should assure a successful Day One execution of the merger," he said.

NXP is also likely to have a buyer for its RF power business in the next few months. Due to the sheer size of the two companies' combined RF power business, Clemmer had previously talked about selling NXP's RF power business in order to meet regulatory guidelines.

Richard Clemmer

NXP CEO Richard Clemmer

NXP has received interest from "quite a number of entities," said Clemmer. "We've actually narrowed that down and have entered a process to try to get to an agreement here over the next couple of months."

NXP divides the company's business into five product categories, including automotive, secure identification solutions, secure connected devices, secure interfaces and power, and high-performance mixed signal and standard products.

IoT: Dot-com phenomena?

NXP, however, does not segment IoT as a separate product category.

One financial analyst said that some competitors are starting to break out IoT in their numbers. When he prodded Clemmer to speculate on the trajectory of the IoT market, Clemmer responded: "It sounds like the dot-com phenomenon."

NXP product revenue

NXP: product revenue, 1Q15 (Source: NXP) Product revenue combines revenue from the high performance mixed signal (HPMS) and standard products (STDP) segments. Per cent of quarterly total amounts may not add to 100 per cent due to rounding.

At NXP, he said "we prefer to call it the smarter world as opposed to the Internet of Things." He added that "smarter world" is "a little bit more descriptive than just the IoT, which is still relatively undefined."

Semantics aside, when it comes to IoT building blocks, Clemmer said that NXP and Freescale combined will have all the fundamental capabilities, including sensing, processing, connectivity and security. He noted that the merged company will be in a "true leadership position" to serve the evolution of IoT beyond "what either of us could have done on a standalone basis."

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