In our most recent Office Hour session, we dug into Qualcomm’s historical revenue stream and tried to get a better grip on the demand environment in which the firm operates.
But Qualcomm’s mobile telephony demand environment is largely separate from the automotive and security-related demand environment in which NXP Semiconductor NXPI – the firm Qualcomm will acquire – operates.
To make the issue a bit more complex, NXP completed a takeover of Motorola’s old semiconductor business, Freescale Semiconductor, in 2015, so a good bit of NXP’s revenues are derived from Freescale’s US business.
In a sense, Qualcomm is like a nesting doll. Open Qualcomm and you find NXP; open NXP and you find Freescale.
NXP has a well-designed Investor Relations (IR) site that contains good information, including NXP’s and Freescale’s annual reports. I was also pleasantly surprised to find that Google Finance has stock price data information for delisted companies (like Freescale).
Thanks to the richness of data, I pulled together models with historical data for NXP and Freescale. Those models, along with some other materials, are posted below.
For Qualcomm’s historical financial data already loaded into a Framework Integrated Model and the company’s background information – including a presentation about the NXP acquisition – please see our original post on Qualcomm.
NXP is a carve out of the semiconductor division of Dutch electronics giant, Philips. The division was sold to a consortium of private equity investors in 2006 and the PE group took the company public in 2010. The Wikipedia entry for NXP is a good source of base-level information. One thing that confused me at first was that there are listings for “NXP N.V.” and “NXP B.V.” The former is the holding company; the latter is the legal entity that issues the firm’s debt and is backed with cash flows from the holding company. This might sound like gobbledygook; the most important thing is that NXP N.V. is the one we want to analyze.
- Framework Integrated Valuation Model for NXP Semiconductor
- NXP IR’s annual and quarterly results spreadsheet
- NXP IR’s 2016 Analyst Day presentation slides
If you would like the annual reports, drop me a line and I’ll send or post them.
Freescale has a very long and proud history in the semiconductor space, with its roots in the once-powerful Motorola. It has been sold off, taken private, taken public, and taken private again over the past generation. The Wikipedia entry for Freescale is not as good as the one for NXP, but it is still not a bad place to start.