NXP IPO – A positive sign for multi-media

 On Aug 6, NXP went public in order to raise over $459M to help offset their separation debt from NV Philips.  Even though the IPO was at a strike price lower than the original plan, the offering went forward based on the strength of the product they are offering.  NXP’s President Rick Clammer in the call about the IPO talked about the strength of the over 14,000 patents in the portfolio and the commitment to the multi-media space.

NXP President Rick Clemmer

The multi-media market was traditionally a CE (Consumer Electronics) market that was dominated by line cord operated appliances.  These included TVs, computers, high performance audio and automotive.  Today’s focus is on the emerging market of mobile devices – laptops, tablets, smartphones, MIDs.  The NXP offering includes display, audio and RF components in this market and their percentage of products installed will be increasing.

The growth areas are both in the US and Pacific Rim.  The revenue from the IPO will provide them some of the cash needed to prepare inventories and develop reference designs to be able to increase their penetration in the marketplace.

NXP Mulrimedia demo board

pc