Freescale Semiconductor Announces Second Quarter 2008 Results

AUSTIN, Texas, (PresseBox) - Freescale Semiconductor Holdings I, Ltd. today announced financial results for the second quarter ended June 27, 2008.

Highlights for the second quarter of 2008 include:

- Net sales of $1.47 billion;
- Adjusted EBITDA of $416 million;
- Cash, cash equivalents and short-term investments of $1.20 billion at June 27, 2008.

A description of Adjusted EBITDA and the reconciliations to our GAAP results are included in this press release and the accompanying tables.

Net Sales

Net sales for the second quarter of 2008 were $1.47 billion, compared to $1.41 billion in the first quarter of 2008 and $1.38 billion in the second quarter of 2007. "Our revenue growth, operating efficiencies and improved margins represent solid execution on the part of the Freescale team," said Rich Beyer, Chairman and CEO.

Operating Highlights

Operating earnings, net earnings (loss) and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) include reorganization of business charges and non-cash purchase accounting expenses related to the company's acquisition by a private equity consortium in December 2006.

The company believes that providing operating earnings and EBITDA exclusive of these expenses, and certain other items, is a more meaningful representation of the company's ongoing financial performance. Including these expenses, the operating loss and net loss for the second quarter of 2008 were $137 million and $184 million, respectively, compared to $268 million and $288 million, respectively, during the second quarter of 2007.

Excluding the aforementioned expenses, operating earnings were $234 million and EBITDA was $368 million in the second quarter of 2008. This compares to operating earnings of $159 million and EBITDA of $311 million in the second quarter of 2007.

The company also uses Adjusted EBITDA to measure compliance with certain of its debt covenants. Adjusted EBITDA is defined as EBITDA adjusted to add back non-cash, non-recurring and other items included in EBITDA and net earnings (loss), as required by various covenants in the company's debt agreements. Adjusted EBITDA was $416 million for the second quarter of 2008 and $1.63 billion for the latest 12 months ended June 27, 2008.

Tables describing EBITDA, Adjusted EBITDA and reconciling net income to these measures are included in this press release.

Product Revenues

The company's net sales figures for the second quarter of 2008 are as follows:

- Microcontroller net sales were $460 million in the second quarter of 2008, compared to $458 million in the first quarter of 2008 and $472 million in the second quarter of 2007.
- RF, Analog and Sensor net sales were $280 million in the second quarter of 2008, compared to $259 million in the first quarter of 2008 and $273 million in the second quarter of 2007.
- Networking and Multimedia net sales were $312 million in the second quarter of 2008, compared to $269 million in the first quarter of 2008 and $263 million in the second quarter of 2007.
- Cellular net sales were $337 million in the second quarter of 2008, compared to $318 million in the first quarter of 2008 and $239 million in the second quarter of 2007.
- Other net sales were $83 million in the second quarter of 2008, compared to $101 million in the first quarter of 2008 and $129 million in the second quarter of 2007.

Liquidity Highlights

Cash, cash equivalents and short-term investments were $1.20 billion on June 27, 2008, compared to $1.25 billion on March 28, 2008. Capital expenditures were $74 million or five percent of net sales for the second quarter of 2008.

Click here for Second Quarter 2008 Results and Tables
http://media.corporate-ir.net/media_files/irol/17/175261/Freescale_Q2_2008_Earnings_Release_FINAL_072208_wtables5.pdf

Freescale Halbleiter Deutschland GmbH

Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale is one of the world's largest semiconductor companies with 2007 sales of $5.7 billion (USD). www.freescale.com

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