Chipmaker NXP Q2 sales dip, sees soft chip market

AMSTERDAM, July 22 (Reuters) - Dutch chip maker NXP [NXP.UL], spun off from Philips (PHG.AS) in 2006, reported on Tuesday a slight decline in quarterly sales, citing continued market weakness.

Second quarter sales fell 2 percent from a year earlier to $1.52 billion, while earnings before interest, tax, depreciation and amortisation fell to $114 million from $190 million, partly due to a weaker dollar, NXP said in a statement.

For the rest of the year, NXP continues to see a relatively flat market with a "year-over-year comparable mid single digit sales decrease, translating into similar sales levels as in the second quarter." That view was also stated at first quarter results.

NXP, which specialises in chips for mobile phones, cars and televisions, said its book-to-bill ratio remained at 1.03, compared with 1.00 in the first quarter, reflecting steady customer orders.

NXP said that its wireless chip joint venture with STMicroelectronics (STM.PA), announced in April, would close in the third quarter, for which it would receive $1.55 billion in cash and 20 percent ownership of the ST-NXP Wireless joint venture. (Reporting by Reed Stevenson; editing by Rory Channing)