NXP Semiconductors' Q1 loss widens, sales drop

* Q1 sales $702 mln vs $1.03 bln in Q4

* EBITDA loss $71 mln

* Cash position end-Q1 at 1.71 bln, down from 1.78 end-Q4

By Harro ten Wolde

AMSTERDAM, April 29 (Reuters) - Dutch semiconductor company NXP Semiconductors [NXP.UL] reported on Wednesday it made a first-quarter net loss of $568 million, blaming the economic downturn which it said hit its utilisation rates heavily.

"The effects from the economic financial crisis continued to have an impact in the first quarter of 2009 on both sales and profitability," NXP said, adding that utilisation of its factories declined to 36 percent in the first quarter down from 56 percent in the fourth quarter of 2008.

First-quarter sales dropped to $702 million from $1.03 billion in the fourth quarter, while the loss of $568 million compared with a $645 million loss in the fourth quarter and $66 million loss in the same period last year.

"Visibility of sales development going forward remains extremely limited. The very weak macro-economic conditions are still continuing," NXP said in a statement.

But the company said it expected an increase in second-quarter sales, based on its book-to-bill ratio which went up to 1.18 in the first quarter from 0.71 in the fourth quarter.

This means $118 worth of orders were received for every $100 of product shipped.

"We believe the improved book-to-bill is primarily driven by supply chain replenishment as opposed to any fundamental improvement of the semiconductors market," NXP said, dampening any optimism.

NXP's cash position stood at $1.71 billion at the end of the quarter, down from $1.8 billion at the end of the fourth quarter.

Last month the company made a new-for-old debt exchange, which will reduce the company's indebtedness by about $465 million.

"Furthermore the related annual interest expense will be reduced by approximately $30 million," NXP said in the statement.

"As a follow-up, the company and group companies may from time to time seek to retire or purchase the outstanding debt through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise," the company said.

NXP was spun off from Philips Electronics (PHG.AS) in 2006, and sold to a private equity consortium that includes KKR [KKR.UL]. Philips still has a stake of about 20 percent. (Editing by Greg Mahlich)