NXP Semiconductors has seen a 19.2% year-on-year rise in third quarter sales.
The company saw last year's Q3 loss turn into a net profit of $412m this time around.
But the chip supplier is taking a cautious approach to the scale of any market upturn in the next quarter.
"Although we have recently experienced improvements across all business segments and all regions we are yet to see signs that this represents a fundamental and sustainable improvement of the global semiconductor industry," said NXP.
As a result the company expects "flat to mid single digit sequential sales increase in the fourth quarter of 2009 on a business and currency comparable basis".
"Visibility beyond the fourth quarter is still limited," said NXP.
Q3 sales were $1.03bn which was 20.7% up on the second quarter.
The increase in sales on a sequential basis was visible across all business segments and regions.
NXP's cash position of $1.06bn was down due to cost of the company's bond buy back transactions undertaken in the quarter and the cash out as a result of the ongoing restructuring payments for the Redesign Program.
See: NXP makes new bond buy-back move