NXP Semiconductors has lowered its guidance for the first quarter, saying revenues will be impacted by the coronavirus (Covid 19) epidemic. The company had guided for a lower Q1 following a very challenging year for the semiconductor industry, but said longer term growth would be helped by new products and its acquisition of Marvell. Revenues were seen at USD 2.195-2.255 billion, the gross margin at 50.8-51.4 percent and the operating profit at USD 165-193 million. The company now expects revenues around USD 50-150 million lower.
The lower end of the range represents the best case scenario, with the weakness most pronounced in the weeks after the Lunar New Year holiday and with more normal order levels in the last two weeks. The upper range is based on a scenario where there is a return to that earlier weakness. “We need to stress that these assumptions are based on less than perfect data, as the situation in China continues to be highly fluid,” NXP said.
CEO Richard Clemmer said the impact is very much an estimate at this time. The company has not seen any material order cancellations.
