Freescale reports net sales of USD 1.03bn

Net sales for the second quarter of 2012 were $1.03 billion, compared to $950 million in the first quarter of 2012 and $1.22 billion in the second quarter of last year. Income from operations for the three months ended June 29, 2012 was $112 million, compared to $168 million in the first quarter of 2012 and $31 million in the second quarter of 2011. The net loss for the second quarter of 2012 was $34 million, compared to a loss of $9 million in the first quarter of 2012 and a loss of $168 million in the second quarter last year.

“Second quarter results showed sequential improvement, with eight percent sales growth and contribution from our automotive, networking, consumer and industrial businesses,” said Gregg Lowe, president and CEO. “We also improved gross margin and added to our cash balance in the quarter.”

Product Revenues

• AISG (which includes our microcontroller, analog and sensor products) net sales were $568 million, compared to $527 million in the first quarter of 2012 and $634 million in the second quarter of 2011.
• NMSG (which includes our networking processors, applications processors and radio frequency products) net sales were $335 million, compared to $317 million in the first quarter of 2012 and $423 million in the second quarter of 2011.
• Cellular net sales were $50 million, compared to $66 million in the first quarter of 2012 and $122 million in the second quarter of 2011.
• Other net sales (which includes intellectual property and foundry revenue) were $76 million, compared to $40 million in the first quarter of 2012 and $44 million in the second quarter of 2011.

Third Quarter 2012 Outlook

• Net sales to be between $955 million and $1.005 billion
• Gross margins to decrease approximately 75 basis points on a sequential basis