NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial
results for the fourth quarter and full year ended December 31,
2022.
“NXP delivered full-year 2022 revenue of $13.21 billion, an
increase of 19 percent year-on-year, with revenue increasing across
all of our focus end-markets. In the fourth quarter, revenue was
$3.31 billion, an increase of 9 percent 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. 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,” said Kurt Sievers, NXP President
and Chief Executive Officer.
Key Highlights for the Fourth Quarter and Full-year
2022:
- Fourth Quarter revenue was $3.31 billion, up 9.0 percent
year-on-year. Full-year revenue was $13.21 billion, up 19.4 percent
year-on-year;
- Fourth Quarter GAAP gross margin was 57.1 percent, and GAAP
operating margin was 29.6 percent. Full-year GAAP gross margin was
56.9 percent, and GAAP operating margin was 28.8 percent;
- Fourth Quarter non-GAAP gross margin was 58.0 percent, and
non-GAAP operating margin was 36.5 percent. Full-year non-GAAP
gross margin was 57.9 percent, and non-GAAP operating margin was
36.3 percent;
- 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;
- During the fourth quarter of 2022, NXP repurchased 3.16 million
shares for a total cost of $475 million and paid cash dividends of
$221 million, returning $696 million to shareholders. On a trailing
twelve month basis capital return to shareholders represented $2.24
billion or 79 percent of non-GAAP free cash flow;
- On November 16, 2022, the NXP Board of Directors approved the
payment of an interim dividend for the fourth quarter 2022 of
$0.845 per ordinary share. The interim dividend was paid in cash on
January 6, 2022 to shareholders of record as of December 15,
2022;
- On January 30, 2023, the NXP Board of Directors approved a 20
percent increase in the quarterly cash dividend to $1.014 per
ordinary share. The interim dividend will be paid in cash on April
5, 2023 to shareholders of record as of March 15, 2023;
- Beginning with the first quarter 2023 financial guidance, NXP
will begin to apply an estimated annual tax rate to its GAAP and
non-GAAP profit before tax;
- On November 14, 2022, NXP announced its new analog front-end
(N-AFE) family for high-precision data acquisition and condition
monitoring systems for factory automation. The new N-AFE family
helps enable the software-defined factory, making it easier for
operators to configure a smart factory and adjust settings based on
shifting market needs. Combined with NXP’s MCU and power management
portfolios, the N-AFE devices expand the industrial system solution
offering, while helping customers to accelerate development time
and reduce time to market;
- On November 15, 2022, NXP announced the new S32K39 series of
automotive microcontrollers (MCUs) optimized for electric vehicle
(EV) control applications. The S32K39 series include networking,
security and functional safety capabilities to address the needs of
zonal vehicle xEV architectures and software-defined vehicles;
- On December 14, 2022, NXP announced new devices to expand the
portfolio of end-to-end Matter solutions to simplify the
development of IoT and industrial IoT solutions. The RW612 is the
industry’s first tri-radio wireless MCU with concurrent,
multi-protocol support for Wi-Fi® 6, Bluetooth® Low Energy 5.3 and
802.15.4, capable of supporting Thread or Zigbee. The K32W148
wireless MCU offers multi-protocol enablement across Thread,
Bluetooth Low Energy 5.3, and Zigbee for devices such as smart
plugs, smart lighting, and low-power smart devices and
sensors;
- On November 25, 2022, MSCI upgraded NXP's ESG rating to "AAA"
from "AA", driven by improvements in NXP’s corporate governance and
conflict mineral management programs. Further, MSCI believes NXP
leads peers in practices to mitigate risks associated with conflict
mineral use in chip manufacturing.
Summary of Reported Fourth Quarter and Full-year 2022 ($
millions, unaudited)
(1)
|
Q4 2022 |
Q3 2022 |
Q4 2021 |
Q - Q |
Y - Y |
2022 |
2021 |
Y - Y |
Total Revenue |
$ |
3,312 |
|
$ |
3,445 |
|
$ |
3,039 |
|
-4 |
% |
9 |
% |
$ |
13,205 |
|
$ |
11,063 |
|
19 |
% |
GAAP Gross
Profit |
$ |
1,891 |
|
$ |
1,967 |
|
$ |
1,707 |
|
-4 |
% |
11 |
% |
$ |
7,517 |
|
$ |
6,067 |
|
24 |
% |
Gross Profit Adjustments(i) |
$ |
(31 |
) |
$ |
(32 |
) |
$ |
(33 |
) |
|
|
$ |
(126 |
) |
$ |
(138 |
) |
|
Non-GAAP Gross
Profit |
$ |
1,922 |
|
$ |
1,999 |
|
$ |
1,740 |
|
-4 |
% |
10 |
% |
$ |
7,643 |
|
$ |
6,205 |
|
23 |
% |
GAAP Gross Margin |
|
57.1 |
% |
|
57.1 |
% |
|
56.2 |
% |
|
|
|
56.9 |
% |
|
54.8 |
% |
|
Non-GAAP Gross Margin |
|
58.0 |
% |
|
58.0 |
% |
|
57.3 |
% |
|
|
|
57.9 |
% |
|
56.1 |
% |
|
GAAP Operating Income
/ (Loss) |
$ |
980 |
|
$ |
1,001 |
|
$ |
807 |
|
-2 |
% |
21 |
% |
$ |
3,797 |
|
$ |
2,583 |
|
47 |
% |
Operating Income Adjustments(i) |
$ |
(228 |
) |
$ |
(270 |
) |
$ |
(253 |
) |
|
|
$ |
(994 |
) |
$ |
(1,058 |
) |
|
Non-GAAP Operating
Income |
$ |
1,208 |
|
$ |
1,271 |
|
$ |
1,060 |
|
-5 |
% |
14 |
% |
$ |
4,791 |
|
$ |
3,641 |
|
32 |
% |
GAAP Operating Margin |
|
29.6 |
% |
|
29.1 |
% |
|
26.6 |
% |
|
|
|
28.8 |
% |
|
23.3 |
% |
|
Non-GAAP Operating Margin |
|
36.5 |
% |
|
36.9 |
% |
|
34.9 |
% |
|
|
|
36.3 |
% |
|
32.9 |
% |
|
Additional
information |
|
|
|
|
|
|
|
|
|
Q4 2022 |
Q3 2022 |
Q4 2021 |
Q - Q |
Y - Y |
2022 |
2021 |
Y - Y |
Automotive |
$ |
1,805 |
|
$ |
1,804 |
|
$ |
1,547 |
|
0 |
% |
17 |
% |
$ |
6,879 |
|
$ |
5,493 |
|
25 |
% |
Industrial & IoT |
$ |
605 |
|
$ |
713 |
|
$ |
661 |
|
-15 |
% |
-8 |
% |
$ |
2,713 |
|
$ |
2,410 |
|
13 |
% |
Mobile |
$ |
408 |
|
$ |
410 |
|
$ |
374 |
|
— |
% |
9 |
% |
$ |
1,607 |
|
$ |
1,412 |
|
14 |
% |
Comm. Infra. & Other |
$ |
494 |
|
$ |
518 |
|
$ |
457 |
|
-5 |
% |
8 |
% |
$ |
2,006 |
|
$ |
1,748 |
|
15 |
% |
DIO |
|
116 |
|
|
99 |
|
|
83 |
|
|
|
|
|
|
DPO |
|
105 |
|
|
96 |
|
|
87 |
|
|
|
|
|
|
DSO |
|
26 |
|
|
27 |
|
|
28 |
|
|
|
|
|
|
Cash Conversion Cycle |
|
37 |
|
|
30 |
|
|
24 |
|
|
|
|
|
|
Channel Inventory (months) |
|
1.6 |
|
|
1.6 |
|
|
1.5 |
|
|
|
|
|
|
Gross Financial Leverage(ii) |
2.0x |
|
2.1x |
|
2.5x |
|
|
|
|
|
|
Net Financial Leverage(iii) |
1.3x |
|
1.4x |
|
1.8x |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Additional Information for the Fourth Quarter and
Full-year 2022:
- For an explanation of GAAP to non-GAAP adjustments, please see
“Non-GAAP Financial Measures”.
- Gross financial leverage is defined as gross debt divided by
trailing twelve months adjusted EBITDA.
- Net financial leverage is defined as net debt divided by
trailing twelve months adjusted EBITDA.
- Net cash paid for income taxes related to on-going operations
was $126 million. Full-Year 2022 net cash paid for income taxes
related to on-going operations was $558 million; and
- Weighted average number of diluted shares for the three-month
period ended December 31, 2022 was 261.4 million. Weighted average
number of diluted shares for the twelve-month period ended December
31, 2022 was 264.1 million.
Guidance for the First Quarter 2023: ($ millions, except
Per Share data) (1)
|
Guidance Range |
|
GAAP |
|
Reconciliation |
|
non-GAAP |
|
Low |
|
Mid |
|
High |
|
|
|
Low |
|
Mid |
|
High |
Total
Revenue |
$ |
2,900 |
|
|
$ |
3,000 |
|
|
$ |
3,100 |
|
|
|
|
$ |
2,900 |
|
|
$ |
3,000 |
|
|
$ |
3,100 |
|
Q-Q |
|
-12 |
% |
|
|
-9 |
% |
|
|
-6 |
% |
|
|
|
|
-12 |
% |
|
|
-9 |
% |
|
|
-6 |
% |
Y-Y |
|
-8 |
% |
|
|
-4 |
% |
|
|
-1 |
% |
|
|
|
|
-8 |
% |
|
|
-4 |
% |
|
|
-1 |
% |
Gross Profit |
$ |
1,634 |
|
|
$ |
1,706 |
|
|
$ |
1,780 |
|
|
$ |
(34 |
) |
|
$ |
1,668 |
|
|
$ |
1,740 |
|
|
$ |
1,814 |
|
Gross Margin |
|
56.3 |
% |
|
|
56.9 |
% |
|
|
57.4 |
% |
|
|
|
|
57.5 |
% |
|
|
58.0 |
% |
|
|
58.5 |
% |
Operating Income
(loss) |
$ |
758 |
|
|
$ |
820 |
|
|
$ |
884 |
|
|
$ |
(210 |
) |
|
$ |
968 |
|
|
$ |
1,030 |
|
|
$ |
1,094 |
|
Operating Margin |
|
26.1 |
% |
|
|
27.3 |
% |
|
|
28.5 |
% |
|
|
|
|
33.4 |
% |
|
|
34.3 |
% |
|
|
35.3 |
% |
Financial Income (expense) |
$ |
(80 |
) |
|
$ |
(80 |
) |
|
$ |
(80 |
) |
|
$ |
(3 |
) |
|
$ |
(77 |
) |
|
$ |
(77 |
) |
|
$ |
(77 |
) |
Tax rate |
16.5%-17.5% |
|
|
|
16.0%-17.0% |
NCI & Other |
$ |
(10 |
) |
|
$ |
(10 |
) |
|
$ |
(10 |
) |
|
$ |
(2 |
) |
|
$ |
(8 |
) |
|
$ |
(8 |
) |
|
$ |
(8 |
) |
Shares - diluted |
|
261.4 |
|
|
|
261.4 |
|
|
|
261.4 |
|
|
|
|
|
261.4 |
|
|
|
261.4 |
|
|
|
261.4 |
|
Earnings Per Share -
diluted |
$ |
2.12 |
|
|
$ |
2.31 |
|
|
$ |
2.51 |
|
|
|
|
$ |
2.82 |
|
|
$ |
3.01 |
|
|
$ |
3.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note (1) Additional Information:
- GAAP Gross Profit is expected to include Purchase Price
Accounting (“PPA”) effects, $(13) million; Stock Based
Compensation, $(12) million; Other Incidentals, $(9) million;
- GAAP Operating Income (loss) is expected to include PPA
effects, $(99) million; Stock Based Compensation, $(98) million;
Restructuring and Other Incidentals, $(13) million;
- GAAP Financial Income (expense) is expected to include Other
financial expense $(3) million;
- GAAP Non-Controlling Interest (NCI) and Other includes
non-controlling interest $(8) million and Other $(2) million;
- GAAP diluted EPS is expected to include the adjustments noted
above for PPA effects, Stock Based Compensation, Restructuring and
Other Incidentals in GAAP Operating Income (loss), the adjustment
for Other financial expense, the adjustment for Non-controlling
interest & Other and the adjustment on Tax due to the earlier
mentioned adjustments.
NXP has based the guidance included in this release on judgments
and estimates that management believes are reasonable given its
assessment of historical trends and other information reasonably
available as of the date of this release. Please note, the guidance
included in this release consists of predictions only, and is
subject to a wide range of known and unknown risks and
uncertainties, many of which are beyond NXP's control. The guidance
included in this release should not be regarded as representations
by NXP that the estimated results will be achieved. Actual results
may vary materially from the guidance we provide today. In relation
to the use of non-GAAP financial information see the note regarding
"Non-GAAP Financial Measures" below. For the factors, risks, and
uncertainties to which judgments, estimates and forward-looking
statements generally are subject see the note regarding
"Forward-looking Statements." We undertake no obligation to
publicly update or revise any forward-looking statements, including
the guidance set forth herein, to reflect future events or
circumstances.
Non-GAAP Financial Measures
In managing NXP's business on a consolidated basis, management
develops an annual operating plan, which is approved by our Board
of Directors, using non-GAAP financial measures, that are not in
accordance with, nor an alternative to, U.S. generally accepted
accounting principles (“GAAP”). In measuring performance against
this plan, management considers the actual or potential impacts on
these non-GAAP financial measures from actions taken to reduce
costs with the goal of increasing our gross margin and operating
margin and when assessing appropriate levels of research and
development efforts. In addition, management relies upon these
non-GAAP financial measures when making decisions about product
spending, administrative budgets, and other operating expenses. We
believe that these non-GAAP financial measures, when coupled with
the GAAP results and the reconciliations to corresponding GAAP
financial measures, provide a more complete understanding of the
Company’s results of operations and the factors and trends
affecting NXP’s business. We believe that they enable investors to
perform additional comparisons of our operating results, to assess
our liquidity and capital position and to analyze financial
performance excluding the effect of expenses unrelated to
operations, certain non-cash expenses and share-based compensation
expense, which may obscure trends in NXP's underlying performance.
This information also enables investors to compare financial
results between periods where certain items may vary independent of
business performance, and allow for greater transparency with
respect to key metrics used by management.
These non-GAAP financial measures are provided in addition to,
and not as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. The presentation of
these and other similar items in NXP’s non-GAAP financial results
should not be interpreted as implying that these items are
non-recurring, infrequent, or unusual. Reconciliations of these
non-GAAP measures to the most comparable measures calculated in
accordance with GAAP are provided in the financial statements
portion of this release in a schedule entitled “Financial
Reconciliation of GAAP to non-GAAP Results (unaudited).” Please
refer to the NXP Historic Financial Model file found on the
Financial Information page of the Investor Relations section of our
website at https://investors.nxp.com for additional information
related to our rationale for using these non-GAAP financial
measures, as well as the impact of these measures on the
presentation of NXP's operations.
In addition to providing financial information on a basis
consistent with GAAP, NXP also provides the following selected
financial measures on a non-GAAP basis: (i) Gross profit, (ii)
Gross margin, (iii) Research and development, (iv) Selling, general
and administrative, (v) Amortization of acquisition-related
intangible assets, (vi) Other income, (vii) Operating income
(loss), (viii) Operating margin, (ix) Financial Income (expense),
(x) Tax Rate, (xi) Earnings per Share - Diluted, (xii) EBITDA,
adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xiii)
free cash flow and free cash flow as a percent of Revenue. The
non-GAAP information excludes the amortization of acquisition
related intangible assets, the purchase accounting effect on
inventory and property, plant and equipment, merger related costs
(including integration costs), certain items related to
divestitures, share-based compensation expense, restructuring and
asset impairment charges, non-cash interest expense on convertible
notes, extinguishment of debt, and foreign exchange gains and
losses.
Conference Call and Webcast InformationThe
company will host a conference call with the financial community on
Tuesday, January 31, 2023 at 8:00 a.m. U.S. Eastern Standard Time
(EST) to review the fourth quarter 2022 results in detail.
Interested parties may preregister to obtain a user-specific
access code for the call here.
The call will be webcast and can be accessed from the NXP
Investor Relations website at www.nxp.com. A replay of the call
will be available on the NXP Investor Relations website within 24
hours of the actual call.
About NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI) brings together bright
minds to create breakthrough technologies that make the connected
world better, safer and more secure. As a world leader in secure
connectivity solutions for embedded applications, NXP is pushing
boundaries in the automotive, industrial & IoT, mobile, and
communication infrastructure markets while delivering solutions
that advance a more sustainable future. Built on more than 60 years
of combined experience and expertise, the company has approximately
31,000 employees in more than 30 countries and posted revenue of
$13.21 billion in 2022. Find out more at www.nxp.com.
Forward-looking Statements
This document includes forward-looking statements which include
statements regarding NXP’s business strategy, financial condition,
results of operations, the expected material weakness in our
internal control over financial reporting, including the timeline
to remediate the expected material weakness, market data, as well
as any other statements which are not historical facts. By their
nature, forward-looking statements are subject to numerous factors,
risks and uncertainties that could cause actual outcomes and
results to be materially different from those projected. These
factors, risks and uncertainties include the following: market
demand and semiconductor industry conditions; our ability to
successfully introduce new technologies and products; the demand
for the goods into which NXP’s products are incorporated; potential
impacts of the COVID-19 pandemic; trade disputes between the U.S.
and China, potential increase of barriers to international trade
and resulting disruptions to NXP's established supply chains; the
impact of government actions and regulations, including
restrictions on the export of US-regulated products and technology;
the ability to generate sufficient cash, raise sufficient capital
or refinance corporate debt at or before maturity to meet both
NXP's debt service and research and development and capital
investment requirements; our ability to accurately estimate demand
and match our production capacity accordingly or obtain supplies
from third-party producers to meet demand; our access to production
capacity from third-party outsourcing partners, and any events that
might affect their business or NXP’s relationship with them; our
ability to secure adequate and timely supply of equipment and
materials from suppliers; our ability to avoid operational problems
and product defects and, if such issues were to arise, to correct
them quickly; our ability to form strategic partnerships and joint
ventures and to successfully cooperate with our alliance partners;
our ability to win competitive bid selection processes; our ability
to develop products for use in customers’ equipment and products;
the ability to successfully hire and retain key management and
senior product engineers; the invasion of Ukraine by Russia and
resulting regional instability, sanctions and any other retaliatory
measures taken against Russia, which could adversely impact the
global supply chain, disrupt our operations or negatively impact
the demand for our products in our primary end markets; and, the
ability to maintain good relationships with NXP's suppliers. In
case tax laws change, this could have an effect on our estimated
effective tax rates. In addition, this document contains
information concerning the semiconductor industry and NXP’s market
and business segments generally, which is forward-looking in nature
and is based on a variety of assumptions regarding the ways in
which the semiconductor industry and NXP's market and business
segments may develop. NXP has based these assumptions on
information currently available, if any one or more of these
assumptions turn out to be incorrect, actual results may differ
from those predicted. While NXP does not know what impact any such
differences may have on its business, if there are such
differences, its future results of operations and its financial
condition could be materially adversely affected. There can be no
assurances that a pandemic, epidemic or outbreak of contagious
diseases, such as COVID-19, will not have a material and adverse
impact on our business, operating results and financial condition
in the future. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak to results only as of
the date the statements were made. Except for any ongoing
obligation to disclose material information as required by the
United States federal securities laws, NXP does not have any
intention or obligation to publicly update or revise any
forward-looking statements after we distribute this document,
whether to reflect any future events or circumstances or otherwise.
For a discussion of potential risks and uncertainties, please refer
to the risk factors listed in our SEC filings. Copies of our SEC
filings are available on our Investor Relations website,
www.nxp.com/investor or from the SEC website, www.sec.gov.
|
|
For further information, please contact: |
|
|
Investors: |
Media: |
Jeff Palmer |
Jacey Zuniga |
jeff.palmer@nxp.com |
jacey.zuniga@nxp.com |
+1 408 518 5411 |
+1 512 895 7398 |
|
|
NXP-CORP
NXP SemiconductorsTable 1: Condensed
consolidated statement of operations (unaudited)
($ in millions except share data) |
Three months ended |
|
Full-year |
|
December 31, 2022 |
|
October 2, 2022 |
|
December 31, 2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
3,312 |
|
|
$ |
3,445 |
|
|
$ |
3,039 |
|
|
$ |
13,205 |
|
|
$ |
11,063 |
|
Cost of revenue |
|
(1,421 |
) |
|
|
(1,478 |
) |
|
|
(1,332 |
) |
|
|
(5,688 |
) |
|
|
(4,996 |
) |
Gross
profit |
|
1,891 |
|
|
|
1,967 |
|
|
|
1,707 |
|
|
|
7,517 |
|
|
|
6,067 |
|
Research and development |
|
(540 |
) |
|
|
(548 |
) |
|
|
(507 |
) |
|
|
(2,148 |
) |
|
|
(1,936 |
) |
Selling, general and
administrative |
|
(261 |
) |
|
|
(289 |
) |
|
|
(257 |
) |
|
|
(1,066 |
) |
|
|
(956 |
) |
Amortization of
acquisition-related intangible assets |
|
(109 |
) |
|
|
(131 |
) |
|
|
(136 |
) |
|
|
(509 |
) |
|
|
(592 |
) |
Total operating
expenses |
|
(910 |
) |
|
|
(968 |
) |
|
|
(900 |
) |
|
|
(3,723 |
) |
|
|
(3,484 |
) |
Other income (expense) |
|
(1 |
) |
|
|
2 |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Operating income
(loss) |
|
980 |
|
|
|
1,001 |
|
|
|
807 |
|
|
|
3,797 |
|
|
|
2,583 |
|
Financial income
(expense): |
|
|
|
|
|
|
|
|
|
Extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
(18 |
) |
|
|
(22 |
) |
Other financial income
(expense) |
|
(103 |
) |
|
|
(98 |
) |
|
|
(101 |
) |
|
|
(416 |
) |
|
|
(381 |
) |
Income (loss) before
income taxes |
|
877 |
|
|
|
903 |
|
|
|
684 |
|
|
|
3,363 |
|
|
|
2,180 |
|
Benefit (provision) for income
taxes |
|
(137 |
) |
|
|
(149 |
) |
|
|
(72 |
) |
|
|
(529 |
) |
|
|
(272 |
) |
Results relating to
equity-accounted investees |
|
(6 |
) |
|
|
(4 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
Net income
(loss) |
|
734 |
|
|
|
750 |
|
|
|
610 |
|
|
|
2,833 |
|
|
|
1,906 |
|
Less: Net income (loss)
attributable to non-controlling interests |
|
12 |
|
|
|
12 |
|
|
|
8 |
|
|
|
46 |
|
|
|
35 |
|
Net income (loss)
attributable to stockholders |
|
722 |
|
|
|
738 |
|
|
|
602 |
|
|
|
2,787 |
|
|
|
1,871 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
data: |
|
|
|
|
|
|
|
|
|
Net income (loss)
per common share attributable to stockholders in $ |
Basic |
$ |
2.78 |
|
|
$ |
2.81 |
|
|
$ |
2.27 |
|
|
$ |
10.64 |
|
|
$ |
6.91 |
|
Diluted |
$ |
2.76 |
|
|
$ |
2.79 |
|
|
$ |
2.24 |
|
|
$ |
10.55 |
|
|
$ |
6.79 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares of common stock
outstanding during the period (in thousands): |
Basic |
|
259,618 |
|
|
|
262,180 |
|
|
|
265,642 |
|
|
|
261,879 |
|
|
|
270,687 |
|
Diluted |
|
261,448 |
|
|
|
264,705 |
|
|
|
268,545 |
|
|
|
264,053 |
|
|
|
275,646 |
|
|
|
|
|
|
|
|
|
|
|
NXP SemiconductorsTable 2: Condensed
consolidated balance sheet (unaudited)
|
($ in millions) |
As of |
|
|
December 31, 2022 |
|
October 2, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
3,845 |
|
|
$ |
3,759 |
|
|
$ |
2,830 |
|
|
Accounts receivable, net |
|
960 |
|
|
|
1,012 |
|
|
|
923 |
|
|
Inventories, net |
|
1,782 |
|
|
|
1,581 |
|
|
|
1,189 |
|
|
Other current assets |
|
348 |
|
|
|
351 |
|
|
|
286 |
|
Total
current assets |
|
6,935 |
|
|
|
6,703 |
|
|
|
5,228 |
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
Other non-current assets |
|
1,942 |
|
|
|
1,940 |
|
|
|
1,346 |
|
|
Property, plant and equipment,
net |
|
3,105 |
|
|
|
2,971 |
|
|
|
2,635 |
|
|
Identified intangible assets,
net |
|
1,311 |
|
|
|
1,417 |
|
|
|
1,694 |
|
|
Goodwill |
|
9,943 |
|
|
|
9,909 |
|
|
|
9,961 |
|
Total
non-current assets |
|
16,301 |
|
|
|
16,237 |
|
|
|
15,636 |
|
|
|
|
|
|
|
|
Total
assets |
|
23,236 |
|
|
|
22,940 |
|
|
|
20,864 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts payable |
|
1,617 |
|
|
|
1,534 |
|
|
|
1,252 |
|
|
Restructuring
liabilities-current |
|
19 |
|
|
|
8 |
|
|
|
25 |
|
|
Other current liabilities |
|
1,634 |
|
|
|
1,677 |
|
|
|
1,175 |
|
Total
current liabilities |
|
3,270 |
|
|
|
3,219 |
|
|
|
2,452 |
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term debt |
|
11,165 |
|
|
|
11,162 |
|
|
|
10,572 |
|
|
Restructuring liabilities |
|
1 |
|
|
|
12 |
|
|
|
12 |
|
|
Deferred tax liabilities |
|
45 |
|
|
|
39 |
|
|
|
57 |
|
|
Other non-current
liabilities |
|
1,015 |
|
|
|
1,123 |
|
|
|
1,001 |
|
Total
non-current liabilities |
|
12,226 |
|
|
|
12,336 |
|
|
|
11,642 |
|
|
|
|
|
|
|
|
|
Non-controlling interests |
|
291 |
|
|
|
279 |
|
|
|
242 |
|
|
Stockholders’ equity |
|
7,449 |
|
|
|
7,106 |
|
|
|
6,528 |
|
Total
equity |
|
7,740 |
|
|
|
7,385 |
|
|
|
6,770 |
|
|
|
|
|
|
|
Total
liabilities and equity |
|
23,236 |
|
|
|
22,940 |
|
|
|
20,864 |
|
|
|
|
|
|
|
|
NXP SemiconductorsTable 3: Condensed
consolidated statement of cash flows (unaudited)
($ in millions) |
Three months ended |
|
Full-year |
|
December 31, 2022 |
|
October 2, 2022 |
|
December 31, 2021 |
|
2022 |
|
2021 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
734 |
|
|
$ |
750 |
|
|
$ |
610 |
|
|
$ |
2,833 |
|
|
$ |
1,906 |
|
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
302 |
|
|
|
321 |
|
|
|
310 |
|
|
|
1,250 |
|
|
|
1,262 |
|
Stock-based compensation |
|
97 |
|
|
|
89 |
|
|
|
88 |
|
|
|
364 |
|
|
|
353 |
|
Amortization of discount (premium) on debt, net |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Amortization of debt issuance costs |
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
7 |
|
|
|
7 |
|
Net (gain) loss on sale of assets |
|
2 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
(Gain) loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
22 |
|
|
|
18 |
|
|
|
22 |
|
Results relating to equity-accounted investees |
|
6 |
|
|
|
4 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
(Gain) loss on equity securities, net |
|
(2 |
) |
|
|
2 |
|
|
|
4 |
|
|
|
4 |
|
|
|
2 |
|
Deferred tax expense (benefit) |
|
(40 |
) |
|
|
(98 |
) |
|
|
(26 |
) |
|
|
(236 |
) |
|
|
(20 |
) |
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
|
(Increase) decrease in receivables and other current assets |
|
59 |
|
|
|
(54 |
) |
|
|
38 |
|
|
|
(106 |
) |
|
|
(176 |
) |
(Increase) decrease in inventories |
|
(201 |
) |
|
|
(119 |
) |
|
|
(16 |
) |
|
|
(593 |
) |
|
|
(159 |
) |
Increase (decrease) in accounts payable and other liabilities |
|
88 |
|
|
|
275 |
|
|
|
6 |
|
|
|
633 |
|
|
|
248 |
|
(Increase) decrease in other non-current assets |
|
19 |
|
|
|
(37 |
) |
|
|
(244 |
) |
|
|
(306 |
) |
|
|
(350 |
) |
Exchange differences |
|
19 |
|
|
|
1 |
|
|
|
(2 |
) |
|
|
17 |
|
|
|
(5 |
) |
Other items |
|
(9 |
) |
|
|
8 |
|
|
|
(8 |
) |
|
|
7 |
|
|
|
(15 |
) |
Net cash provided by
(used for) operating activities |
|
1,076 |
|
|
|
1,144 |
|
|
|
785 |
|
|
|
3,895 |
|
|
|
3,077 |
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
Purchase of identified intangible assets |
|
(37 |
) |
|
|
(50 |
) |
|
|
(33 |
) |
|
|
(159 |
) |
|
|
(132 |
) |
Capital expenditures on property, plant and equipment |
|
(233 |
) |
|
|
(282 |
) |
|
|
(266 |
) |
|
|
(1,063 |
) |
|
|
(767 |
) |
Purchase of equipment leased to others |
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|
(5 |
) |
|
|
(33 |
) |
Insurance recoveries received for equipment damage |
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
10 |
|
Proceeds from the disposals of property, plant and equipment |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
1 |
|
Purchase of interests in businesses, net of cash acquired |
|
— |
|
|
|
(22 |
) |
|
|
(6 |
) |
|
|
(27 |
) |
|
|
(23 |
) |
Purchase of investments |
|
(11 |
) |
|
|
(7 |
) |
|
|
(2 |
) |
|
|
(20 |
) |
|
|
(8 |
) |
Proceeds from the sale of investments |
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
13 |
|
|
|
8 |
|
Proceeds from return of equity investments |
|
8 |
|
|
|
— |
|
|
|
7 |
|
|
|
10 |
|
|
|
10 |
|
Net cash provided by
(used for) investing activities |
|
(272 |
) |
|
|
(360 |
) |
|
|
(316 |
) |
|
|
(1,249 |
) |
|
|
(934 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Repurchase of long-term debt |
|
— |
|
|
|
— |
|
|
|
(1,021 |
) |
|
|
(917 |
) |
|
|
(1,021 |
) |
Proceeds from the issuance of long-term debt |
|
— |
|
|
|
— |
|
|
|
2,000 |
|
|
|
1,496 |
|
|
|
4,000 |
|
Cash paid for debt issuance costs |
|
(1 |
) |
|
|
— |
|
|
|
(25 |
) |
|
|
(14 |
) |
|
|
(47 |
) |
Dividends paid to common stockholders |
|
(221 |
) |
|
|
(223 |
) |
|
|
(150 |
) |
|
|
(815 |
) |
|
|
(562 |
) |
Proceeds from issuance of common stock through stock plans |
|
1 |
|
|
|
30 |
|
|
|
2 |
|
|
|
59 |
|
|
|
62 |
|
Purchase of treasury shares and restricted stock unit
withholdings1) |
|
(506 |
) |
1) |
|
(366 |
) |
|
|
(750 |
) |
|
|
(1,426 |
) |
|
|
(4,015 |
) |
Other, net |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(2 |
) |
Net cash provided by
(used for) financing activities |
|
(728 |
) |
|
|
(559 |
) |
|
|
55 |
|
|
|
(1,619 |
) |
|
|
(1,585 |
) |
|
|
|
|
|
|
|
|
|
|
Effect of changes in exchange
rates on cash positions |
|
10 |
|
|
|
(11 |
) |
|
|
3 |
|
|
|
(12 |
) |
|
|
(3 |
) |
Increase (decrease) in cash
and cash equivalents |
|
86 |
|
|
|
214 |
|
|
|
527 |
|
|
|
1,015 |
|
|
|
555 |
|
Cash and cash equivalents at
beginning of period |
|
3,759 |
|
|
|
3,545 |
|
|
|
2,303 |
|
|
|
2,830 |
|
|
|
2,275 |
|
Cash and cash
equivalents at end of period |
|
3,845 |
|
|
|
3,759 |
|
|
|
2,830 |
|
|
|
3,845 |
|
|
|
2,830 |
|
|
|
|
|
|
|
|
|
|
|
Net cash paid during the period for: |
|
|
|
|
|
|
|
|
|
Interest |
|
106 |
|
|
|
39 |
|
|
|
140 |
|
|
|
323 |
|
|
|
356 |
|
Income taxes, net of
refunds |
|
126 |
|
|
|
160 |
|
|
|
103 |
|
|
|
558 |
|
|
|
353 |
|
Net gain (loss) on
sale of assets: |
|
|
|
|
|
|
|
|
|
Cash proceeds from the sale of
assets |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
Book value of these
assets |
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
Non-cash investing
activities: |
|
|
|
|
|
|
|
|
|
Non-cash capital
expenditures |
|
232 |
|
|
|
176 |
|
|
|
243 |
|
|
|
232 |
|
|
|
243 |
|
1) For the quarters ended December 31, 2022 and October 2, 2022,
represents cash paid during the quarter, excluding $3 million and
$34 million, respectively, of unsettled repurchase transactions
with a trade date plus two days settlement.
NXP SemiconductorsTable 4: Financial
Reconciliation of GAAP to non-GAAP Results (unaudited)
($ in millions) |
Three months ended |
|
Full-year |
|
December 31, 2022 |
|
October 2, 2022 |
|
December 31, 2021 |
|
2022 |
|
2021 |
Revenue |
$ |
3,312 |
|
|
$ |
3,445 |
|
|
$ |
3,039 |
|
|
$ |
13,205 |
|
|
$ |
11,063 |
|
GAAP Gross
Profit |
$ |
1,891 |
|
|
$ |
1,967 |
|
|
$ |
1,707 |
|
|
$ |
7,517 |
|
|
$ |
6,067 |
|
PPA Effects |
|
(15 |
) |
|
|
(15 |
) |
|
|
(18 |
) |
|
|
(58 |
) |
|
|
(74 |
) |
Restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
Stock Based Compensation |
|
(12 |
) |
|
|
(12 |
) |
|
|
(11 |
) |
|
|
(47 |
) |
|
|
(45 |
) |
Other incidentals |
|
(4 |
) |
|
|
(5 |
) |
|
|
(4 |
) |
|
|
(24 |
) |
|
|
(19 |
) |
Non-GAAP Gross
Profit |
$ |
1,922 |
|
|
$ |
1,999 |
|
|
$ |
1,740 |
|
|
$ |
7,643 |
|
|
$ |
6,205 |
|
GAAP Gross
margin |
|
57.1 |
% |
|
|
57.1 |
% |
|
|
56.2 |
% |
|
|
56.9 |
% |
|
|
54.8 |
% |
Non-GAAP Gross
margin |
|
58.0 |
% |
|
|
58.0 |
% |
|
|
57.3 |
% |
|
|
57.9 |
% |
|
|
56.1 |
% |
GAAP Research and development |
$ |
(540 |
) |
|
$ |
(548 |
) |
|
$ |
(507 |
) |
|
$ |
(2,148 |
) |
|
$ |
(1,936 |
) |
Restructuring |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
(1 |
) |
Stock based compensation |
|
(49 |
) |
|
|
(45 |
) |
|
|
(44 |
) |
|
|
(183 |
) |
|
|
(165 |
) |
Other incidentals |
|
(1 |
) |
|
|
(1 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(2 |
) |
Non-GAAP Research and development |
$ |
(490 |
) |
|
$ |
(502 |
) |
|
$ |
(463 |
) |
|
$ |
(1,961 |
) |
|
$ |
(1,768 |
) |
GAAP Selling, general and administrative |
$ |
(261 |
) |
|
$ |
(289 |
) |
|
$ |
(257 |
) |
|
$ |
(1,066 |
) |
|
$ |
(956 |
) |
PPA effects |
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(5 |
) |
|
|
(5 |
) |
Restructuring |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Stock based compensation |
|
(36 |
) |
|
|
(32 |
) |
|
|
(33 |
) |
|
|
(134 |
) |
|
|
(143 |
) |
Other incidentals |
|
(3 |
) |
|
|
(27 |
) |
|
|
(5 |
) |
|
|
(35 |
) |
|
|
(12 |
) |
Non-GAAP Selling, general and administrative |
$ |
(223 |
) |
|
$ |
(228 |
) |
|
$ |
(218 |
) |
|
$ |
(894 |
) |
|
$ |
(796 |
) |
GAAP amortization of acquisition-related intangible assets |
$ |
(109 |
) |
|
$ |
(131 |
) |
|
$ |
(136 |
) |
|
$ |
(509 |
) |
|
$ |
(592 |
) |
PPA effects |
|
(109 |
) |
|
|
(131 |
) |
|
|
(136 |
) |
|
|
(509 |
) |
|
|
(592 |
) |
Non-GAAP amortization of acquisition-related intangible assets |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
GAAP Other income (expense) |
$ |
(1 |
) |
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
3 |
|
|
$ |
— |
|
Other incidentals |
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
Non-GAAP Other income (expense) |
$ |
(1 |
) |
|
$ |
2 |
|
|
$ |
1 |
|
|
$ |
3 |
|
|
$ |
— |
|
GAAP Operating income
(loss) |
$ |
980 |
|
|
$ |
1,001 |
|
|
$ |
807 |
|
|
$ |
3,797 |
|
|
$ |
2,583 |
|
PPA effects |
|
(125 |
) |
|
|
(148 |
) |
|
|
(155 |
) |
|
|
(572 |
) |
|
|
(671 |
) |
Restructuring |
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
7 |
|
|
|
(1 |
) |
Stock based compensation |
|
(97 |
) |
|
|
(89 |
) |
|
|
(88 |
) |
|
|
(364 |
) |
|
|
(353 |
) |
Other incidentals |
|
(8 |
) |
|
|
(33 |
) |
|
|
(10 |
) |
|
|
(65 |
) |
|
|
(33 |
) |
Non-GAAP Operating
income (loss) |
$ |
1,208 |
|
|
$ |
1,271 |
|
|
$ |
1,060 |
|
|
$ |
4,791 |
|
|
$ |
3,641 |
|
GAAP Operating
margin |
|
29.6 |
% |
|
|
29.1 |
% |
|
|
26.6 |
% |
|
|
28.8 |
% |
|
|
23.3 |
% |
Non-GAAP Operating
margin |
|
36.5 |
% |
|
|
36.9 |
% |
|
|
34.9 |
% |
|
|
36.3 |
% |
|
|
32.9 |
% |
GAAP Financial income
(expense) |
$ |
(103 |
) |
|
$ |
(98 |
) |
|
$ |
(123 |
) |
|
$ |
(434 |
) |
|
$ |
(403 |
) |
Foreign exchange gain (loss) |
|
(8 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(13 |
) |
|
|
(1 |
) |
Gain (loss) on extinguishment of long-term debt |
|
— |
|
|
|
— |
|
|
|
(22 |
) |
|
|
(18 |
) |
|
|
(22 |
) |
Other financial income (expense) |
|
— |
|
|
|
(5 |
) |
|
|
(7 |
) |
|
|
(17 |
) |
|
|
(15 |
) |
Non-GAAP Financial
income (expense) |
$ |
(95 |
) |
|
$ |
(91 |
) |
|
$ |
(93 |
) |
|
$ |
(386 |
) |
|
$ |
(365 |
) |
|
|
|
|
|
|
|
|
|
|
NXP SemiconductorsTable 5: Adjusted
EBITDA and Free Cash Flow (unaudited)
($ in millions) |
Three months ended |
|
Full-year |
|
December 31, 2022 |
|
October 2, 2022 |
|
December 31, 2021 |
|
2022 |
|
2021 |
GAAP Net income (loss) |
$ |
734 |
|
|
$ |
750 |
|
|
$ |
610 |
|
|
$ |
2,833 |
|
|
$ |
1,906 |
|
Reconciling items to
EBITDA (Non-GAAP) |
|
|
|
|
|
|
|
|
|
Financial (income) expense |
|
103 |
|
|
|
98 |
|
|
|
123 |
|
|
|
434 |
|
|
|
403 |
|
(Benefit) provision for income taxes |
|
137 |
|
|
|
149 |
|
|
|
72 |
|
|
|
529 |
|
|
|
272 |
|
Depreciation |
|
158 |
|
|
|
156 |
|
|
|
145 |
|
|
|
605 |
|
|
|
551 |
|
Amortization |
|
144 |
|
|
|
165 |
|
|
|
165 |
|
|
|
645 |
|
|
|
711 |
|
EBITDA (Non-GAAP) |
$ |
1,276 |
|
|
$ |
1,318 |
|
|
$ |
1,115 |
|
|
$ |
5,046 |
|
|
$ |
3,843 |
|
Reconciling items to
adjusted EBITDA (Non-GAAP) |
|
|
|
|
|
|
|
|
|
Results of equity-accounted investees |
|
6 |
|
|
|
4 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
Restructuring |
|
(2 |
) |
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
1 |
|
Stock based costs |
|
97 |
|
|
|
89 |
|
|
|
88 |
|
|
|
364 |
|
|
|
353 |
|
Other incidental items |
|
8 |
|
|
|
33 |
|
|
|
10 |
|
|
|
65 |
|
|
|
33 |
|
Adjusted EBITDA (Non-GAAP) |
$ |
1,385 |
|
|
$ |
1,444 |
|
|
$ |
1,215 |
|
|
$ |
5,469 |
|
|
$ |
4,232 |
|
Trailing twelve month
adjusted EBITDA (Non-GAAP) |
$ |
5,469 |
|
|
$ |
5,299 |
|
|
$ |
4,232 |
|
|
$ |
5,469 |
|
|
$ |
4,232 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in millions) |
Three months ended |
|
Full-year |
|
December 31, 2022 |
|
October 2, 2022 |
|
December 31, 2021 |
|
2022 |
|
2021 |
Net cash provided by
(used for) operating activities |
$ |
1,076 |
|
|
$ |
1,144 |
|
|
$ |
785 |
|
|
$ |
3,895 |
|
|
$ |
3,077 |
|
Net capital expenditures on
property, plant and equipment |
|
(233 |
) |
|
|
(281 |
) |
|
|
(266 |
) |
|
|
(1,061 |
) |
|
|
(766 |
) |
Non-GAAP free cash
flow |
$ |
843 |
|
|
$ |
863 |
|
|
$ |
519 |
|
|
$ |
2,834 |
|
|
$ |
2,311 |
|
Trailing twelve month
non-GAAP free cash flow |
$ |
2,834 |
|
|
$ |
2,510 |
|
|
$ |
2,311 |
|
|
$ |
2,834 |
|
|
$ |
2,311 |
|
Trailing twelve month
non-GAAP free cash flowas percent of
Revenue |
|
21 |
% |
|
|
19 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
21 |
% |
|
|
|
|
|
|
|
|
|
|
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