NXP's CEO Clemmer aims for 2-5% sales growth

NXP Semiconductors CEO Richard Clemmer believes the semiconductor company is well placed to take advantage of growth in the market this year.

“I see the company in a very strong position,” Clemmer told.

“I expect 2% to 5% revenue growth in Q2,” said Clemmer. This follows a 4.4% quarter-on-quarter growth in chip sales for Q1.

Looking ahead Clemmer said he was positive that the company could match or out grow specific market segments 

“I am confident we can grow 50% faster than the market in the high performance mixed-signal segment,” said Clemmer.  

This follows a first quarter where the high performance mixed-signal segment, which includes NXP’s ARM-based microcntrollers, ID, NFC, wireless and automotive chips, grew by 7% year-on-year.

“The ID chip business, not including NFC, grew 18% sequentially, it was our fastest growing product segment,” said Clemmer.

Clemmer said there would be no change in the company’s manufacturing strategy despite a 26% fall in revenues from the manufacturing services operation from Q4 to Q1 this year.

“On the contrary this decline is good for us, as there is no margin in that business. It means we have more capacity to manufacture our own products with 60% margin,”  Clemmer told . 

Little surprise Clemmer was sounding relaxed about things he had just reported first quarter results which saw NXP return into profit for the first time for a while.

Net income for the first quarter of 2011 was $187m on revenues of $1,082m. The chipmaker reported a net loss of $118m in the fourth quarter of 2010.

He also saw the company’s debt reduce by $568m year-on-year, although it still sits at $3.75bn.

Looking at the rest of the year Clemmer said, with a smile (I am sure): “I am very positively inclined about our situation.”

While total revenues of $1.1bn for Q1 were dragged down by the manufacturing business and so were almost flat, Clemmer was quick to point to the 4.4% increase in product revenue quarter-on-quarter.

“Afterall this is where we make all our profit,” added Clemmer.