EINDHOVEN, The Netherlands- NXP Semiconductors N.V. reported financial results for the third quarter, ended October 2, 2022.
“NXP delivered quarterly revenue of $3.45 billion, an increase of 20 percent year-on-year and above the mid-point of our guidance range. Overall in the third quarter, we performed very well; however, we were impacted by the weakening macro-environment in our consumer-exposed IoT business. At the same time, demand in both the automotive and industrial markets continues to be resilient, driven by secular and company-specific drivers, along with incrementally improved supply. Looking ahead, while we continue to be supply constrained, we are cautious in the intermediate term, due to the uncertainties in the macro environment,” said Kurt Sievers, NXP President and Chief Executive Officer.
Key Highlights for the Third Quarter 2022:
- Revenue was $3.45 billion, up 20.4 percent year-on-year;
- GAAP gross margin was 57.1 percent, and GAAP operating margin was 29.1 percent;
- Non-GAAP gross margin was 58.0 percent, and non-GAAP operating margin was 36.9 percent;
- Cash flow from operations was $1,144 million, with net capex investments of $281 million, resulting in non-GAAP free cash flow of $863 million;
- During the third quarter of 2022, NXP repurchased 2.50 million shares for a total cost of $400 million and paid cash dividends of $223 million, returning $623 million to shareholders. On a trailing twelve month basis capital return to shareholders represented $2,448 billion or 98 percent of non-GAAP free cash flow.
- Between October 3, 2022 and October 28, 2022, NXP repurchased via a 10b5-1 program an additional 1.77 million shares for a total cost of $260 million;
- On August 5, 2022, the NXP Board of Directors approved the payment of an interim dividend for the third quarter 2022 of $0.845 per ordinary share. The interim dividend was paid in cash on October 6, 2022 to shareholders of record as of September 15, 2022;
- On August 26, 2022, NXP B.V., together with NXP Funding LLC, amended and restated its revolving credit agreement entered into on June 11, 2019. The amended and restated revolving credit agreement provides for $2,500 million of senior unsecured revolving credit commitments and is scheduled to mature on August 26, 2027;
- On August 24, 2022 NXP announced expanded and strong customer engagements for its entire S32 family of domain and zonal automotive processors. This includes several recent awards with leading automotive OEMs in Europe, the Americas, Asia and China and highlights the appeal and traction of the S32 platform. This includes a major automotive OEM’s selection of NXP’s S32 family of automotive processors and microcontrollers to be used across its fleet of future vehicles, beginning mid-decade. The resulting multi-year supply agreement spans the S32 family, including the upcoming 5nm ASIL-D processors;
- On September 14, 2022 NXP announced its new higher power BTS7202 RX Front End Modules (FEM) and BTS6403/6305 pre-drivers for 5G massive multiple-input multiple-output (MIMO) going up to 20 W per channel. Developed and implemented in NXP’s silicon germanium (SiGe) process, the devices operate with modest current consumption to reduce operational costs for mobile network operators (MNOs);
- On September 28, 2022 NXP released its 2nd generation RFCMOS radar transceiver family to production. The TEF82xx is the successor to the market-proven TEF810x, which has already shipped tens of millions of units. Optimized for fast chirp modulation, the device supports short-, medium- and long-range radar applications, including cascaded high-resolution imaging radar. It enables 360-degree sensing for critical safety applications, including automated emergency braking, adaptive cruise control, blind-spot monitoring, cross-traffic alert and automated parking.
