Freescale Semiconductor Posts 3Q Results

Freescale Semiconductor Holdings announced financial results for the third quarter ended October 2.

"Third quarter results represent very strong execution on the part of the Freescale team," said Rich Beyer, Chairman and CEO. "Revenues in our core businesses grew sequentially, operating profitability improved significantly and we ended the quarter with more than $1.3 billion in cash."

In a release dated October 22, the company stated:

- Net sales for the third quarter of 2009 were $893 million, compared to $824 million in the second quarter of 2009 and $1.41 billion in the third quarter last year. The year over year sales decline was attributable to the company's decision in 2008 to exit its cellular handset business as well as the challenging macroeconomic environment.

- The reported loss from operations for the three months ended October 2, inclusive of $91 million of reorganization costs, was $261 million, compared to a loss of $345 million in the second quarter and a loss of $3.37 billion in the third quarter of 2008.

- Adjusted operating earnings for the three months ended October 2, were $12 million compared to a loss of $75 million in the second quarter of 2009 and profit of $191 million for the same period last year.

- Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) was $119 million for the third quarter of 2009, compared to $38 million in the second quarter of 2009 and $322 million for the third quarter last year.

- The company recorded $91 million of reorganization costs, inclusive of approximately $31 million in severance charges associated with additional actions undertaken by the company in the third quarter. As previously reported in prior quarters, the company has been implementing a series of restructuring actions to streamline its cost structure, reduce its breakeven and re-direct some research and development investments into higher growth markets. Total severance and related cash requirements associated with these actions, inclusive of all actions to date, total approximately $300 million with expected corresponding annualized savings of approximately $800 million.

- Cash and cash equivalents were $1.33 billion on October 2, compared to $1.31 billion on July 3.

Freescale Semiconductor designs and manufactures embedded semiconductors for the automotive, consumer, industrial and networking markets.

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