NXP Semiconductors (NXPI), a semiconductor company providing High-Performance Mixed-Signal and Standard Products solutions, priced its IPO on 4th August at $14 per share, below the expected range of $18 - $21 per share.
Business Overview (from prospectus)
We are a global semiconductor company and a long-standing supplier in the industry, with over 50 years of innovation and operating history. We provide leading High-Performance Mixed-Signal and Standard Products solutions that leverage our deep application insight and our technology and manufacturing expertise in radio frequency (“RF”), analog, power management, interface, security and digital processing products. Our product solutions are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. We engage with leading original equipment manufacturers (“OEMs”) worldwide and over 58% of our sales are derived from Asia Pacific (excluding Japan). As of April 4, 2010, we had approximately 28,000 full-time equivalent employees located in more than 25 countries, with research and development activities in Asia, Europe and the United States, and manufacturing facilities in Asia and Europe.
Offering: 34 million shares at $14 per share. Net proceeds from this offering will be used for debt repayment.
Sales were $1,165 million in the first quarter of 2010, compared to $702 million in the first quarter of 2009...Gross profit was $428 million, or 36.7% of sales, in the first quarter of 2010, compared to $68 million, or 9.7% of sales, in the first quarter of 2009...Selling expenses were $66 million, or 5.7% of sales, in the first quarter of 2010, compared to $61 million, or 8.7% of sales, in the first quarter of 2009...Research and development expenses amounted to $154 million, or 13.2% of sales, in the first quarter of 2010, compared to $187 million, or 26.6% of sales, in the first quarter of 2009.The net income for the first quarter of 2010 amounted to a loss of $336 million, compared to a loss of $589 million in the first quarter of 2009...
We compete with many different semiconductor companies, ranging from multinational companies with integrated research and development, manufacturing, sales and marketing organizations across a broad spectrum of product lines, to “fabless” semiconductor companies, to companies that are focused on a single application market segment or standard product. Most of these competitors compete with us with respect to some, but not all, of our businesses. Few of our competitors have operations across our business lines.
Our key competitors in alphabetical order include AAC Acoustic Technologies Holdings Inc. (AACAY), Analog Devices Inc. (ADI), Atmel Corporation (ATML), Entropic Communications Inc. (ENTR), Fairchild Semiconductors International Inc. (FCS), Freescale, Infineon (IFNY), International Rectifier Corporation (IRF), Linear Technology Corporation (LLTC), Maxim Integrated Products, Inc. (MXIM), MaxLinear, Inc. (MXL), Microtune Inc. (TUNE), National Semiconductor (NSM), NEC Corporation (NIPNF), ON Semiconductor Corporation (ONNN), Power Integrations Inc. (POWI), ROHM Co., Ltd. (ROHCY), Samsung (SSDIF), Silicon Laboratories Inc. (SLAB), STMicroelectronics (STM), and Texas Instruments Incorporated (TXN).
- Company website
- WSJ: NXP Semiconductors Prices 34 Million-Share IPO At $14
- Reuters: NXP Semiconductors files for $663 mln IPO
- SeekingAlpha: KKR’s NXP Semiconductors IPO NOT a good deal