The company’s net sales figures for the third quarter of 2013 were as follows:
- Microcontroller net sales were $230 million in the third quarter, compared to $199 million in the second quarter of 2013 and $192 million in the third quarter last year. Sequentially, sales benefitted from growth in microcontrollers and applications processors sold into the consumer markets. On a year-over-year basis, sales increased primarily due to growth in microcontrollers and applications processors sold into the automotive and general embedded markets.
- Digital Networking net sales were $238 million, compared to $229 million in the second quarter of 2013 and $226 million in the third quarter last year. Networking sales benefitted both sequentially and year over year from higher spending on current and next generation enterprise systems and higher sales of products sold into the general embedded market.
- Automotive Microcontroller net sales were $270 million, compared to $272 million in the second quarter of 2013 and $252 million in the third quarter last year. Automotive microcontroller sales declined sequentially due to seasonally lower vehicle production in key geographies in which the company participates. On a year-over-year basis, sales improved due to increased vehicle production, primarily in the U.S. and China markets.
- Analog & Sensor net sales were $181 million, compared to $188 million in the second quarter of 2013 and $180 million in the third quarter last year. Analog & Sensor net sales declined sequentially primarily due to seasonally lower vehicle production. On a year-over-year basis, growth in automotive end markets was offset by declines in various consumer markets.
- RF net sales, which include sales of power amplifiers to the wireless infrastructure market, were $89 million, compared to $81 million in the second quarter of 2013 and $73 million in the third quarter last year. Sales improved sequentially and year over year due to increased spending on next-generation wireless networks, primarily in China.
- Other net sales were $77 million compared to $69 million in the second quarter of 2013 and $86 million in the third quarter last year. On a sequential basis, sales grew due primarily to higher IP revenue. Year over year, other net sales declined due primarily to lower sales into the wireless handset market.
Other Third Quarter 2013 Financial Information
- Capital Expenditures were $45 million;
- Cash and Cash Equivalents were $700 million and;
- Adjusted EBITDA* for the latest twelve months ending September 27, 2013 was $828 million.
*Adjusted for various items as indicated and defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release.
Fourth Quarter 2013 Outlook
For the fourth quarter of 2013, the company expects:
- Net sales to be between $1.03 billion and $1.07 billion;
- Gross margins to be essentially flat with Q3 2013.
Conference Call and Webcast
Freescale's quarterly earnings call is scheduled to begin at 4:00 p.m. Central Daylight Time on October 24, 2013. The company will offer a live webcast of the conference call over the Internet at www.freescale.com/investor.
Caution Regarding Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements relate to our business strategy, goals and expectations
concerning our future revenues, operations, margins, profitability,
liquidity and capital resources. Although we believe the assumptions
upon which these forward-looking statements are based are reasonable,
any of these assumptions could prove to be inaccurate and the
forward-looking statements based on these assumptions could be
incorrect. Our operations involve risks and uncertainties, many of which
are outside our control, and any one of which, or a combination of
which, could materially affect our results of operations and whether the
forward-looking statements ultimately prove to be correct. Actual
results and trends in the future may differ materially from those
suggested or implied by the forward-looking statements depending on a
variety of factors. Some of the factors that we believe could affect our
results include our substantial indebtedness; our ability to service our
outstanding indebtedness and the impact such indebtedness may have on
the way we operate our business; the loss of one or more of our
significant customers or strategic relationships; general economic and
business conditions and any downturns in the cyclical industry in which
we operate; our competitive environment and our ability to make
technological advances; interruptions in our production or manufacturing
capacity and our ability to obtain supplies; economic conditions in the
industries in which our products are sold; maintenance and protection of
our intellectual property; political and economic conditions in the
countries where we conduct business; geological conditions in some of
the earthquake-prone countries where certain of our customers and
suppliers are based; the costs of environmental compliance and/or the
imposition of liabilities under environmental laws and regulations;
potential product liability or personal injury claims; inability to make
necessary capital expenditures; loss of key personnel; the financial
viability of our customers, distributors or suppliers; and our ability
to achieve cost savings as well as other matters described under
"Risk Factors" in our Annual Report on Form 10-K/A and other filings
with the SEC. We undertake no obligation to update any information
contained in this press release.
