NXP Semiconductors Reports Second Quarter 2023 Results

EINDHOVEN, The Netherlands, July 24, 2023 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter, ended July 2, 2023.

“NXP delivered quarterly revenue of $3.3 billion at the high end of guidance, with revenue trends in all our focus end-markets performing better than anticipated. Our first-half results and guidance for the third quarter underpin our confidence that NXP is successfully navigating through the cyclical downturn in our consumer-exposed businesses. At the same time, we see continued strength in our automotive, core-industrial and communications infrastructure businesses,” said Kurt Sievers, NXP President and Chief Executive Officer.

Key Highlights for the Second Quarter 2023:

Revenue was $3.3 billion, down 0.4 percent year-on-year;
GAAP gross margin was 57.0 percent, GAAP operating margin was 28.4 percent and GAAP diluted Net Income per Share was $2.67;
Non-GAAP gross margin was 58.4 percent, non-GAAP operating margin was 35.0 percent, and non-GAAP diluted Net Income per Share was $3.43;
Cash flow from operations was $756 million, with net capex investments of $200 million, resulting in non-GAAP free cash flow of $556 million;
During the second quarter of 2023, NXP continued to execute its capital return policy with the payment of $264 million in cash dividends, and the repurchase of $302 million of its common shares. The total capital return of $566 million in the quarter represented 102 percent of second quarter non-GAAP free cash flow. The interim dividend for the second quarter 2023 was paid in cash on July 6, 2023 to shareholders of record as of June 14, 2023. Subsequent to the end of the second quarter, between July 3, 2023 and July 21, 2023, NXP executed via a 10b5-1 program additional share repurchases totaling $69 million;
On April 5, 2023, NXP published its annual Corporate Sustainability Report (CSR), highlighting its progress, accountability and ongoing commitment to further sustainable business practices;
On May 2, 2023, NXP announced NIO Inc., a leading brand in the global premium smart electric vehicle market, will leverage NXP’s leading automotive radar technology, including 4D imaging radar;
On May 16, 2023, NXP announced its collaboration with TSMC to deliver the semiconductor industry’s first automotive embedded MRAM (Magnetic Random Access Memory) technology in 16 nm FinFET technology;
On May 24, 2023, at NXP’s annual general meeting (“AGM”), shareholders overwhelmingly elected all nominated directors to NXP’s Board of Directors. The Board of Directors of NXP appointed Ms. Julie Southern to serve as Chair of the Board to succeed Sir Peter Bonfield who retired from his service on the NXP Board at the conclusion of the AGM, and Mr. Moshe Gavrielov joins the Board as a non-executive director; and
On May 30, NXP announced the i.MX 91 applications processor family which streamlines the development of cost-optimized edge devices that require security, performance, and Linux support in a scalable, reliable platform.

Summary of Reported Second Quarter 2023 ($ millions, unaudited ) ⁽¹⁾

	Q2 2023			Q1 2023			Q2 2022			Q - Q	Y - Y
Total Revenue	$	3,299		$	3,121		$	3,312		6 %	— %
GAAP Gross Profit	$	1,881		$	1,770		$	1,882		6 %	— %
Gross Profit Adjustments ⁽ⁱ⁾	$	(45	)	$	(46	)	$	(33	)
Non-GAAP Gross Profit	$	1,926		$	1,816		$	1,915		6%	1%
GAAP Gross Margin		57.0	%		56.7	%		56.8	%
Non-GAAP Gross Margin		58.4	%		58.2	%		57.8	%
GAAP Operating Income (Loss)	$	937		$	825		$	943		14 %	-1 %
Operating Income Adjustments ⁽ⁱ⁾	$	(218	)	$	(260	)	$	(250	)
Non-GAAP Operating Income	$	1,155		$	1,085		$	1,193		6 %	-3 %
GAAP Operating Margin		28.4	%		26.4	%		28.5	%
Non-GAAP Operating Margin		35.0	%		34.8	%		36.0	%
GAAP Net Income (Loss) attributable to Stockholders	$	698		$	615
Net Income Adjustments ⁽ⁱ⁾	$	(198	)	$	(219	)
Non-GAAP Net Income (Loss) Attributable to Stockholders	$	896		$	834
GAAP diluted Net Income (Loss) per Share	$	2.67		$	2.35
Non-GAAP diluted Net Income (Loss) per Share	$	3.43		$	3.19

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