Freescale Reports Q1 Revenues of $1.13B
AUSTIN, Texas -- Freescale Semiconductor, Ltd. (FSL) today announced financial results for the first quarter ended April 4, 2014.
“We continue to see solid progress on our initiatives to increase revenue and improve gross margin,” said Gregg Lowe, president and CEO. “All five product groups generated revenue growth sequentially and year over year. With a 15 percent year-over-year growth in revenue, the company continues to make strides in gaining market share.
“Our results continue to benefit from margin expansion and deleveraging efforts, as our sequential revenue increase of 4 percent drove an adjusted earnings per share growth of 42 percent.”
First Quarter Highlights
Net sales for the first quarter of 2014 were $1.13 billion, compared to $1.08 billion in the fourth quarter of 2013 and $981 million in the first quarter of 2013.
Operating earnings for the period were $155 million, compared to $145 million in the fourth quarter of 2013 and $104 million in the first quarter of 2013. Operating earnings improved on a sequential and year-over-year basis due to higher sales and improving gross margins, partially offset by increased investments in new products and higher incentive compensation.
Net loss for the first quarter was $23 million, or $0.08 per share, compared to a net loss of $118 million, or $0.46 per share, in the fourth quarter of 2013 and a net loss of $48 million, or $0.19 per share in the first quarter of 2013. First quarter 2014 results included a $59 million loss associated with debt retirement and refinancing transactions completed during the quarter, which will result in lower interest expense in future quarters.
Adjusted operating earnings for the three months ended April 4, 2014 were $186 million, compared to earnings of $174 million in the fourth quarter of 2013 and $117 million in the first quarter of 2013.
Adjusted net earnings for the first quarter of 2014 were $77 million, or $0.27 per share, compared to $50 million, or $0.19 per share, in the fourth quarter of 2013 and a loss of $8 million, or $0.03 per share, in the first quarter of 2013. Adjusted net earnings improved sequentially and year over year due to improving sales and gross margin along with lower interest expense associated with the company’s capital structure initiatives.