A snip from NXP on their RFID business while we wait for earnings.
NXP Semiconductors N.V. (NASDAQ:NXPI) Q4 2024 Earnings Call Transcript - Insider Monkey
Chris Caso: Yeah, thank you. Good morning. The first question is, again, on some of the digital networking products that are going end of life. I want to make sure that we’re calibrated on this correctly. So, I think what you said is that was about 30% of the common infrastructure segment. Should we expect that a large part of that goes away over the next few quarters? I guess I’m trying to quantify how much of the business is affected by end of life and sort of the timing that you expect for that to finally work its way down.
Kurt Sievers: Yeah. So first of all, yes, I reconfirm you understood me correctly. It’s about 30% exiting last year of the total revenue of the segment, which we discuss about here. And by the way, just as an aside, I mean, the RF power business in there is also pretty lumpy. It’s not like everything else is golden, and that’s the only concern. But that’s the one we speak about. And yes, it will continue through the next couple of quarters to further decline given the end-of-life actions on several of these products. That doesn’t mean it goes totally away but think about the continued decline through the next couple of quarters of that 30% piece. Now at the same time, the secure card business is okay. In there, we have RFID.
You know that RFID is a growth business for NXP. So there are many moving pieces in this comms infra segment, which is why for the next three years, we guided it to be just flat. I just wanted to show today to call out that, that 30% portion really sees a quite material decline through this year. |
