This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Freescale Semiconductor's CEO Discusses Q2 2012 Results - Earnings Call Transcript

With that, I’ll turn the call to Gregg Lowe.

Gregg Lowe

Good afternoon and welcome to our second quarter earnings call. As most of you know, this is my first earnings call with Freescale. I'm excited to be here and very upbeat about the opportunities ahead of us. I’ll spend a couple of minutes highlighting our Q2 results, after which Alan will provide some additional commentary and insight into the financials. Following Alan’s comments, I’ll share some initial observations about Freescale, and then we’ll entertain questions.

As expected coming into the quarter, our results improved on a sequential basis. Revenues grew 8% to $1.029 billion, gross margins increased 50 basis points to 42.8%, adjusted net earnings were $17 million and adjusted EPS was $0.07.

Also during the quarter, Freescale hosted another very successful Technology Forum in San Antonio. We hosted more than 2,200 attendees over 10 days, including over a thousand customers, 400 partners and distributors, hundred university educators, and a hundred suppliers. During the event, more than 360 hours of in-depth and hands-on technical training sessions were completed. Many of you attended the event and saw first hand a number of innovative new products will be rolling out to customers in the coming months.

With that, let me turn the call over to Alan.

Alan Campbell

Well, good afternoon and thank you again for joining today’s call. As I review the Q2 financial results in more detail, please note that I will be focusing on the results excluding the impact of certain one-time items and adjustments. We believe this to be a more meaningful representation of our ongoing financial performance. Please also note that the majority of the purchase price accounting adjustments are no longer material.

Now looking in Q2 in more detail, revenues were $1.029 billion, representing a sequential increase of 8%. Sales declined by 16% compared to Q2 of last year. AISG product sales in Q2 were $568 million, 8% above the first quarter and 10% below Q2 of last year. Sales to both of our automotive and industrial markets grew sequentially. Year over year, revenues declined in both automotive and industrial given the strong demand following the earthquake in Japan in early 2011.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG

Markets

DOW 18,257.81 -27.93 -0.15%
S&P 500 2,130.22 -0.60 -0.03%
NASDAQ 5,101.8790 +11.0850 0.22%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs