NXP Semiconductors Reports 4Q, Full-Year 2022 Results

NXP Semiconductors N.V. reported financial results for the fourth quarter and full year ended Dec. 31, 2022.

Key Highlights for the fourth quarter and full-year 2022:
• Fourth quarter revenue was $3.31 billion, up 9.0% year-on-year. Full-year revenue was $13.21 billion, up 19.4% year-on-year.
• Fourth quarter GAAP gross margin was 57.1%, and GAAP operating margin was 29.6%. Full-year GAAP gross margin was 56.9%, and GAAP operating margin was 28.8%.
• Fourth quarter non-GAAP gross margin was 58.0%, and non-GAAP operating margin was 36.5%. Full-year non-GAAP gross margin was 57.9%, and non-GAAP operating margin was 36.3%.
• Fourth quarter cash flow from operations was $1,076 million, with net capex investments of $233 million, resulting in non-GAAP free cash flow of $843 million. Full-year cash flow from operations was $3,895 million, with net capex investments of $1,061 million, resulting in non-GAAP free cash flow of $2,834 million.

“NXP delivered full-year 2022 revenue of $13.21 billion, an increase of 19% year-on-year, with revenue increasing across all of our focus end-markets,” said Kurt Sievers, NXP president and CEO. “In the fourth quarter, revenue was $3.31 billion, an increase of 9% year-on-year, in line with the mid-point of our guidance range.

“In review, 2022 was a very good year for NXP, with strong execution resulting in record revenue, solid profit growth, and healthy free cash flow generation,” added Sievers. “Additionally, we experienced unprecedented year-on-year design win traction across the entire portfolio. From an end-market perspective, our automotive business performed very well, while in our consumer IoT and mobile businesses we experienced a softening demand environment through the second half of 2022. Accordingly, we have adopted a vigilant operational stance, aiming to improve service to those customers who continue to experience material shortages while managing the distribution channel inventory levels well below our long-term targets.”