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KKR’s NXP Semiconductors IPO NOT a good deal

|Includes: NSM, NXPI, ON, STM, Texas Instruments Inc. (TXN)

For valuation metrics, both Enterprise Value & 'standard'
see IPOreport

NXP Semiconductors NV (NASDAQ:NXPI), $4.85bb market cap
at price range mid-point of $19.5
$663mm IPO scheduled to price Friday, July 30

SUMMARY
> Post IPO NXPI has a negative net worth post-IPO of at least $3bb (?)
> SEC filing issues
. Interest charges aren’t broken out in the sec filing (haven’t seen this before)
. EBITDA is not broken out in the sec filing (haven’t seen this before)
NXPI is another KKR company seeking IPO money to repay debt, probably used to pay dividends to KKR, etc.

> Week financials (see financials below)
. Never earned money.  In the March 2010 quarter revenue jumped up 65% & gross margin increased to 37% from 10%
. But operating profit was zero and net loss was 29% of revenue
. Post IPO total debt will almost equal the projected market cap of $4.8bb
> Doesn’t look like a good deal for investors at the current price range
> Compare/contrast with other semiconductor companies

ENTERPRISE VALUE (NYSE:EV)
NXPI overpriced on an EV/Earnings & EV/Tangible Bk Value

For valuation metrics, both Enterprise Value & 'standardard'
see IPOreport