NXP Semiconductors (NASDAQ:NXPI) is a dutch hi-tech company which designs, makes and sells mixed-signals semiconductors to other hardware companies. NXP's semiconductors are used by a wide variety of products including: computing, mobile phones, RFID, wireless, and in chips used in cars, lights, and household electronics. While the company has experienced a net loss for the past three years, its holds a strong market position. It is has the number 1 or 2 market share in 68% of its high-performance sales and in 80% of its standard sales.
NXP Semiconductors was spun-off from the semiconductor branch of the electronics giant Philips in 2006. During the spinoff, approximately 5,300 patent families and specific intellectual property were transferred to the new company. Philips remains a top customer for NXP and the two companies have a maintained a close relationship. However, combined with left over debt to Philips from the spinoff, NXP has $5.2B debt as of 2010.
The company's initial public offering of stock on the NASDAQ occurred on August 5th, 2010. The initial price range was $18-$21, and 34 million shares. However, the company was forced to cut its offer price down to $14. The deal raised $476M. The lead underwriters were Credit Suisse Group (CS), Goldman Sachs Group (GS), and Morgan Stanley (MS).
NXP Semiconductors has continued to experience a net loss, in part due to a high research and development cost. However, the company's revenue figures have also fallen consistently over the past three years. NXP reported total revenue of $6.3B, $5.4B, and $3.8B for 2007, 2008, and 2009 respectively. This corresponds to a -14% and -30% drop in revenue between 2007-2008 and 2008-2009. NXP Semiconductors was also able to cut cost of sales significantly which caused net loss to go from -$3.6B in 2008 to -$161M in 2009.