NXP expects 19 percent Q2 revenue drop

NXP finds itself in rough waters. After delivering revenue of 2.0 billion dollars in Q1, 3 percent lower than the same period last year, the company predicts a YOY drop of 19 percent to about 1.8 billion dollars for Q2. “We currently find ourselves navigating a challenging and very fluid environment. Notwithstanding the current challenges, NXP continues to have the financial strength, the product portfolio and customer engagements to emerge strongly from the current unpredictable environment,” comments CEO Richard Clemmer.

NXP’s largest division, Automotive, registered a 4 percent YOY revenue drop in Q1. Mobile, the second-largest division, took a 10 percent hit. Somewhat limiting the damage, the remaining two business units both saw revenue increase by 2 percent. The operational profit decreased 26 percent to 54 million dollars. For Q2, NXP predicts an operational loss of 177 million dollars.