NXP Semiconductors Announces First Quarter 2009 Results

Q1 Highlights

* Q1 sales USD 673* M versus USD 1,519 M in Q1 2008 and USD 979** M in Q4 2008
* Comparable QoQ sales decrease of 29.4%
* Q1 adjusted EBITDA (excluding effects of Purchase Price Accounting) was a loss
of USD 71M, compared to a profit of USD 183M in Q1 2008 and a profit of USD 41M
in Q4 2008
* Cash position of USD 1,706M*** at the end of Q1 compared to USD 1,796M at the
end of Q4 2008
* Significant progress has been made in executing the Redesign Program. The
program is now expected to achieve a higher level of savings than originally
anticipated, and total restructuring costs are now expected to be no greater
than USD 700 M
* Factory loading of 36% in Q1 compared to 87% in Q1 2008 and 56% in Q4 2008
* Book to bill ratio improved in Q1 2009 to 1.18 compared to 0.71 in Q4 2008.
NXP believes the improved book to bill is primarily driven by supply chain
replenishment as opposed to any fundamental improvement of the semiconductors
market

*) Excluding USD 29 million wafer sales to ST-Ericsson Wireless JV in Q1 2009

**) Excluding USD 47 million wafer sales to ST-NXP Wireless JV in Q4 2008

***) Including USD 200 million draw down during Q1 from NXP`s revolving credit
facility and USD 92 million from the divesture of the remaining 20% of ST-NXP
Wireless JV.
EINDHOVEN, Netherlands--(Business Wire)--
NXP Semiconductors today announced first quarter sales of USD 673 million, a
comparable decrease of 29.4% from the fourth quarter of 2008. Adjusted EBITDA in
the first quarter amounted to a loss of USD 71 million, down from a profit of
USD 183 million in the first quarter of 2008 and down from a profit of USD 41
million in the fourth quarter of 2008. Adjusted EBITA showed a loss of USD 188
million this quarter compared to a profit of USD 41 million in the same period
last year and a loss of USD 84 million in the previous quarter.

The cash position was USD 1,706 million at the end of the first quarter, which
includes USD 92 million from the sale of the ST-NXP Wireless shares and USD 200
million drawn down from NXP`s revolving credit facility which is now at a total
of USD 600 million. The Q1 cash position compares with USD 1,796 million at the
end of the fourth quarter of 2008.

During the period significant progress has been made on execution of the
large-scale Redesign Program announced in September 2008. This program is
focused on making necessary changes to withstand the significant weakness
prevailing in the industry and to optimize the businesses to help deliver NXP`s
longer term strategic objectives. The program is now forecast to have
restructuring costs of no greater than USD 700 million and is expected to
achieve higher annual savings than those initially projected (USD 550 million)
by the end of 2010. While the cash expense of the Redesign Program will remain
the same in total, the cash-out for the Redesign will increase significantly in
the next quarters.

Market conditions remain extremely challenging for the semiconductor industry
with very low visibility.

Outlook: Visibility of sales development going forward remains extremely
limited. The very weak macro-economic conditions are still continuing. Although
we recently experienced positive order book developments, we believe the
improved book to bill is primarily driven by supply chain replenishment as
opposed to any fundamental improvement of the semiconductors market

Under these circumstances, a 10 to 25% sequential sales increase in the second
quarter on a business and currency comparable basis could be achievable, which
excludes wafer sales to the ST-Ericsson Wireless joint venture. It is still very
unclear how the overall market sentiment in the remainder of the year will
develop.

The full report is available on NXP website (www.nxp.com/investor).

About NXP Semiconductors

NXP is a leading semiconductor company founded by Philips more than 50 years
ago. Headquartered in Europe, the company has about 28,000 employees working in
more than 30 countries and posted sales of USD 5.4 billion (including the Mobile
& Personal business) in 2008. NXP creates semiconductors, system solutions and
software that deliver better sensory experiences in TVs, set-top boxes,
identification applications, mobile phones, cars and a wide range of other
electronic devices. News from NXP is located at www.nxp.com.

NXP Semiconductors
Lieke de Jong-Tops, +31 40 27 25202 (Media)
lieke.de.jong-tops@nxp.com
Jan Maarten Ingen Housz, +31 40 27 28685 (Investors)
janmaarten.ingen.housz@nxp.com

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