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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (30033)	4/19/2006 6:39:33 PM
From: The Ox	Read Replies (1) \| Respond to of 95610

Freescale Semiconductor Reports First Quarter 2006 Results Wednesday April 19, 4:05 pm ET AUSTIN, Texas--(BUSINESS WIRE)--April 19, 2006--Freescale Semiconductor (NYSE:FSL - News; NYSE:FSL.B - News), today reported its financial results for the first quarter ended March 31, 2006. First quarter 2006 highlights include: -- Net sales of $1.53 billion; -- Gross margin of 45.3%; -- Net earnings of $212 million; -- Diluted earnings per share of $.50; -- Gross margin, net earnings and earnings per share include stock option expense. "The Freescale team executed well in the first quarter," said Michel Mayer, chairman and CEO. "We are starting to see momentum in a number of key areas and our earnings growth continues to be strong." First Quarter 2006 Sales Net sales in the first quarter of 2006 were $1.53 billion, compared to $1.48 billion in the fourth quarter of 2005 and $1.44 billion in the first quarter of 2005. Net Earnings Net earnings for the first quarter of 2006 were $212 million, or $.50 per diluted share, which included incremental stock based compensation expense of $.04 per diluted share associated with the company's adoption of SFAS 123R. Also included in the first quarter 2006 net earnings is an after-tax gain of $7 million ($.02 per diluted share) as a cumulative effect of a change in accounting principle associated with the company's adoption of SFAS 123R. This compares to results, reported without option expense, of $192 million or $.45 per diluted share in the fourth quarter of 2005 and $85 million or $.20 per diluted share in the first quarter of 2005. Operating Earnings Operating earnings for the first quarter of 2006 were $207 million or 13.6% of net sales compared to $202 million for the fourth quarter of 2005 and operating earnings of $109 million for the first quarter of 2005. Operating Highlights Gross margin for the first quarter of 2006 was 45.3%. Adjusting for the gain associated with the Delphi receivable in the fourth quarter of 2005 and stock option expense which began in the first quarter of 2006, gross margins improved by 90 basis points sequentially. During the first quarter of 2006, the company repurchased 3.8 million shares of its common stock for $100 million. Capital expenditures for the first quarter were $145 million. Cash, cash equivalents, short-term investments and marketable securities included in investments totaled $3.1 billion in the first quarter of 2006. Transportation and Standard Products The Transportation and Standard Products segment reported net sales of $653 million in the first quarter of 2006, compared to $649 million in the fourth quarter of 2005 and $646 million in the first quarter of 2005. The segment's operating earnings were $129 million in the first quarter of 2006 (20% of net sales), compared to $117 million in fourth quarter of 2005 and $96 million in the first quarter of 2005. Networking and Computing Systems The Networking and Computing Systems segment reported net sales of $351 million in the first quarter of 2006, compared to $338 million in the fourth quarter of 2005 and $349 million in the first quarter of 2005. Operating income in the first quarter of 2006 was $81 million (23% of net sales) compared to $73 million in the fourth quarter of 2005 and $56 million in the first quarter of 2005. Wireless and Mobile Solutions The Wireless and Mobile Solutions segment reported net sales of $506 million in the first quarter of 2006, compared to $476 million in the fourth quarter of 2005 and $427 million in the first quarter of 2005. The segment generated operating income of $34 million (7% of net sales) in the first quarter of 2006, compared to operating income of $38 million in the fourth quarter of 2005 and $6 million in the first quarter of 2005. Other Operations Other operations reported an operating loss of ($37) million in the first quarter of 2006 compared to operating losses of ($26) million in the fourth quarter of 2005 and ($49) million in the first quarter of 2005. Second Quarter 2006 Outlook For the second quarter of 2006, the company expects to report revenues of $1.50 to $1.60 billion. Gross margins for the second quarter of 2006 are expected to be slightly up from the level reported in the first quarter of 2006.