NXP Semiconductors recovery takes hold

NXP Semiconductors credited strong sales for a $93 million income from operations in the second quarter of 2010 compared to a $217 million loss in Q2 2009. The company reported Q2 sales of $1.2 billion, compared to $1.165 billion in the previous three-month period and $903 million in Q2 2009. Factory loading based on wafer starts, from 62 percent in the year-ago period, reached 96 percent, a three-percentage-point increase from last quarter.

After breaking even in the first quarter of 2010, the chipmaker reported a gross margin of 39.3 percent, continuing the growth from 20.6 percent in Q2 2009 and 36.7 percent last quarter. The semiconductor company's adjusted gross margin rose to 40.1 percent from 30.7 percent in Q2 2009 and 38.2 percent last quarter. NXP's cash position was $842 million in the second quarter, down from $870 million.

NXP, which raised $476 million in gross proceeds from 34 million new shares issued during its initial public offering earlier this month, completed bond transactions in July to extend the maturities of some $1 billion of debt to 2018.