There's been a lot of talk about near-field communications, or NFC, in the past couple of years. How have those rumblings translated for Netherlands-based, NFC-specialist NXP Semiconductors (NAS: NXPI) ?

The company just reported fourth-quarter results, after finishing a nice run throughout January. Total revenue in the quarter shrank by 14% to $931 million, while its net loss widened to $0.73 per share. Looking at the full year, revenue inched higher by 4% to $3.83 billion, which was able to turn into a $1.57 per share profit by the time it reached the bottom line.

NXP has been working on weaning off its debt, and reduced net debt by $597 million throughout the year to just over $3.05 billion. Looking forward, the company sees first-quarter sales between $927 million and $984 million.

While NXP is known for its NFC chips, CEO Richard Clemmer said, "We have (had) significant design wins in premier handsets beyond near-field communication that will be a significant factor in the future." This is smart because Clemmer is trying to expand the company's perception beyond its NFC specialties.

NFC is sure to power the revolution in mobile payment technology. Google uses the technology in its Google Wallet offering, and there's a very real chance that Apple may include it in the next iPhone, since it didn't make the cut in the iPhone 4S. The technology is also set to start making its way into laptops in the near future.

That sounds promising, but some very capable rivals are still threatening NXP's spot at the NFC forefront. Rival Broadcom (NAS: BRCM) announced that it was getting in on the NFC action late last year. Chip King Kong Intel (NAS: INTC) is "highly interested" in NFC, recently partnering with Inside Secure for that reason. Mobile processor maker Qualcomm (NAS: QCOM) is interested in integrating NFC into its Snapdragon lineup.

The potential for NFC is massive, but that's drawing in the rivals like sharks looking for blood. NXP still has the lead, but those rivals are some big sharks with some big teeth.

NFC is just one aspect of how the mobile revolution is changing our lives and how we interact with technology on a daily basis. Mobile computing promises to be the next trillion dollar revolution. There are lots of companies that are set to cash in on it, but one in particular has excellent prospects. The company is one of few players that will help power the mobile devices of the future, and it also has exposure to the explosive growth in China. Get access to this 100% free report now.

At the time this article was published Fool contributor Evan Niu has sold bullish put spreads on QUALCOMM. He owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Intel, QUALCOMM, Apple, and Google. Motley Fool newsletter services have recommended buying shares of NXP Semiconductors, Intel, Apple, and Google, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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bps163

I stand corrected ARM dose have these chip's! ,, "ARM & NXP" are partners in these chip's

March 13 2012 at 10:10 PM Report abuse rate up rate down Reply
bps163

ARM now claims it has a power saving chip, however where is the test that proves it work's at all. All the companies are using the well tested and reliable NXP chip's. The johnny come lately are panicking they are willing to say anything to hold on to the now lost market share.

March 13 2012 at 10:01 PM Report abuse rate up rate down Reply
bps163

Great Conference call by Goldman Sacks & NXP. Both were even using a low approach number's, and it still show's ( NXPI ) stock going off the charts and through the roof.

February 15 2012 at 9:51 AM Report abuse +1 rate up rate down Reply
bps163

I have been saying NXP / NFC it's ticker ( NXPI ) was going to "corner" the Electronic's Energy World and it has just done that. Make sure you understand that (____Every, not just some! Every Company in the World____) will need these chips and that's a GIANT. I am all in and buying all I can get and afford

February 14 2012 at 5:25 PM Report abuse rate up rate down Reply
bps163

Here's another thing about ( NXPI )! The Cap's called it right, this will be the $500+ beggar and lot more. Here's the main key to it, Energy Savings that alone is worth 100s of $ Billions. This will be the next Google, Apple, IBM, Microsoft and there is no one that can prove me wrong, if they can PROVE IT.

February 12 2012 at 12:04 PM Report abuse +1 rate up rate down Reply
bps163

Good read, but I found out a hole lot more about NFC chip's and the others don't have a real chance at catching up with them. It will take years for anyone of them to try and cost them 100s of Billions to get close to what NFC has now. This NFC chip will change every electronic device in the world for the better long before anyone thinks.

February 10 2012 at 4:37 PM Report abuse rate up rate down Reply