NXP Semiconductors NV (NXPI – Free Report) reported fourth-quarter 2016 earnings per share of 37 cents, which decreased significantly from $3.56 per share reported in the year-ago quarter.

Quarter Details

NXP Semiconductors’ revenues grew 51.9% year over year to $2.440 billion and beat the Zacks Consensus Estimate of $2.439 billion by a slight margin.

Revenues were boosted by 51.2% increase in Product revenues and 89.7% increase in Corporate & Other revenues on a year-over-year basis. Also, an increase in High Performance Mixed Signal (HPMS) segment revenues (up 71% on a year-over-year basis) positively impacted the quarter’s results.

NXP Semiconductors’ reported gross margin expanded from 38.5% on a year-over-year basis to 48.7%, primarily due to a higher revenue base. Non-GAAP gross profit margin during the quarter was 51.1% compared with 50.2% reported in the year-ago quarter.

The company’s operating margin decreased to 7.1% from 63.1% reported in the year-ago quarter. The year-over-year decline was primarily due to higher operating expenses (up 17.7% year over year). On a non-GAAP basis, operating margin was 29.3% compared with 27% reported in the year-ago period. The increase was mainly due to lower operating expenses as a percentage of revenues. Operating expenses, as a percentage of revenues, decreased to 24.7% from 29.8% reported in the year-ago quarter.

The company’s reported net income attributable to shareholders came in at $128 million compared with $972 million reported in the year-ago quarter.

NXP Semiconductors exited the quarter with cash and cash equivalents of approximately $1.89 billion compared with $1.57 billion reported in the previous quarter. Receivables were $1.03 billion at the end of the quarter compared with $1.16 billion reported in the previous quarter. NXP Semiconductors’ balance sheet has long-term debt of $8.77 billion compared with $8.76 billion reported in the previous quarter.