AUSTIN, Texas, October 22, 2009 -- Freescale Semiconductor Holdings I, Ltd. today announced financial results for the third quarter ended October 2, 2009.

Highlights for the third quarter include:

• Net sales of $893 million;
• Trailing 12 month Adjusted EBITDA of $445 million;
• Cash and cash equivalents of $1.33 billion at October 2, 2009.

“Third quarter results represent very strong execution on the part of the Freescale team,” said Rich Beyer, Chairman and CEO. “Revenues in our core businesses grew sequentially, operating profitability improved significantly and we ended the quarter with more than $1.3 billion in cash.”

Operating Results

Net sales for the third quarter of 2009 were $893 million, compared to $824 million in the second quarter of 2009 and $1.41 billion in the third quarter last year. The year over year sales decline was attributable to the company’s decision in 2008 to exit its cellular handset business as well as the challenging macroeconomic environment.

The reported loss from operations for the three months ended October 2, 2009, inclusive of $91 million of reorganization costs, was $261 million, compared to a loss of $345 million in the second quarter and a loss of $3.37 billion in the third quarter of 2008.

Adjusted operating earnings (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) for the three months ended October 2, 2009 were $12 million compared to a loss of $75 million in the second quarter of 2009 and profit of $191 million for the same period last year.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA), (defined in Note 1 to the Notes to the Consolidated Financial Information attached to this press release) was $119 million for the third quarter of 2009, compared to $38 million in the second quarter of 2009 and $322 million for the third quarter last year.

Descriptions of adjusted gross margin, EBITDA, Adjusted EBITDA and adjusted operating earnings/loss, free cash flow and the reconciliations to our GAAP results are included in the tables and notes attached to this press release.

Product Revenues

The company’s net sales figures for the third quarter of 2009 are as follows:

• Microcontroller net sales were $291 million in the third quarter of 2009, compared to $238 million in the second quarter of 2009 and $408 million in the third quarter of 2008.



• RF, Analog and Sensor net sales were $208 million in the third quarter of 2009, compared to $201 million in the second quarter of 2009 and $261 million in the third quarter of 2008.



• Networking and Multimedia net sales were $234 million in the third quarter of 2009, compared to $216 million in the second quarter of 2009 and $307 million in the third quarter of 2008.



• Cellular net sales were $122 million in the third quarter of 2009, compared to $138 million in the second quarter of 2009 and $344 million in the third quarter of 2008.



• Other net sales were $38 million in the third quarter of 2009 compared to $31 million in the second quarter of 2009 and $89 million in the third quarter of 2008.

Third Quarter Business Reorganization

The company recorded $91 million of reorganization costs, inclusive of approximately $31 million in severance charges associated with additional actions undertaken by the company in the third quarter. As previously reported in prior quarters, the company has been implementing a series of restructuring actions to streamline its cost structure, reduce its breakeven and re-direct some research and development investments into higher growth markets. Total severance and related cash requirements associated with these actions, inclusive of all actions to date, total approximately $300 million with expected corresponding annualized savings of approximately $800 million.

Financial Position

Cash and cash equivalents were $1.33 billion on October 2, 2009, compared to $1.31 billion on July 3, 2009.

Conference Call and Webcast

Freescale's quarterly earnings call is scheduled to begin at 4 p.m. Central Daylight Time on October 22, 2009. The company will offer a live webcast of the conference call over the Internet at www.freescale.com/investor.

Caution Regarding Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our business strategy, goals and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. Some of the factors that we believe could affect our results include our substantial indebtedness; our ability to service our outstanding indebtedness and the impact such indebtedness may have on the way we operate our business; the loss of one or more of our significant customers or strategic relationships; general economic and business conditions and any downturns in the cyclical industry in which we operate; our competitive environment and our ability to make technological advances; interruptions in our production or manufacturing capacity and our ability to obtain supplies; economic conditions in the industries in which our products are sold; maintenance and protection of our intellectual property; political and economic conditions in the countries where we conduct business; integration of future acquisitions into our business; the costs of environmental compliance and/or the imposition of liabilities under environmental laws and regulations; potential product liability claims; inability to make necessary capital expenditures; loss of key personnel; the financial viability of our customers, distributors or suppliers; and our ability to achieve cost savings as well as other matters described under "Risk Factors" in our Annual Report on Form 10-K and other filings with the SEC. We undertake no obligation to update any information contained in this press release.

Non-GAAP Financial Measures
Included within this press release and the accompanying tables and notes are non-GAAP financial measures that supplement the company's consolidated financial information prepared under GAAP. The company describes these non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures in the tables and notes attached to this press release.The company's management believes that these non-GAAP measures provide a more meaningful representation of the company’s ongoing financial performance. In addition, the company uses Adjusted EBITDA to measure compliance with certain of its debt covenants. These non-GAAP measures are included solely for informational and comparative purposes and are not meant as a substitute for GAAP. You should consider them together with the consolidated financial information located in the tables attached to this press release.

About Freescale Semiconductor
Freescale Semiconductor is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial and networking markets. The privately held company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations around the world. Freescale is one of the world's largest semiconductor companies with 2008 sales of $5.2 billion (USD). www.freescale.com

Click here for Third Quarter 2009 Results and Tables
Click here for Third Quarter 2009 Non-GAAP Reconciliations

CONTACT:

Investors:
Mitch Haws, 512-895-2454
mitch.haws@freescale.com

Media:
Rob Hatley, 512-996-5134
robert.hatley@freescale.com