NXP forecasts 11% hit from Covid-19 in 2Q20
The company amended its guidance for the 1Q20 in March stating that the Covid-19 pandemic would knock approximately 5 percent of its revenue (see NXP, Analog forecast about 5% coronavirus impact on quarterly revenues). The company further reduced its forecast for 1Q20 – to $2,021 million – on April 7.
The quarter has come in at that figure, a 3 percent drop year-on-year. The company made an operating income of $68 million, which was up from $54 million a year before.
However, the company is predicting sequential fall in revenue in 2Q20 to between $1.7 billion and $1.8 billion and swing to an operating loss of between $115 million and $237 million. At the mid-point of its guidance the company makes an operating loss of $177 million on revenue of $1.8 billion.
The company has four main business divisions and the communications infrastructure unit reported a 10 percent fall year-on-year to $404 million and automotive a 4 percent fall to $994 million. Industrial & IoT recorded $376 million and mobile $247 million, both up 2 percent on a year before.
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