NXP will be glad to put 2019 behind it. Facing headwinds particularly in the important automotive end market, the chipmaker’s revenue dropped 6 percent year-on-year to 8.88 billion dollars. The silver lining is an increase in profitability, as evidenced by an increased gross margin from 52.9 percent in 2018 to 53.5 percent in 2019. The net income ended up at 243 million dollars, against 2.2 billion dollars in 2018 (which included one-off income).
Looking forward, NXP is “increasingly confident that the demand trends within our end markets are beginning to moderately improve,” commented CEO Richard Clemmer. Referring to the acquisition of Marvell’s wireless activities, Clemmer said that customers “have already begun to adopt many of [our] new solutions, and as they continue to ramp into volume production, we anticipate new products will help to underpin NXP’s long-term growth, financial and capital return targets.”