NXP Semiconductors Reports 4Q, Full-Year 2023 Results

NXP Semiconductors N.V. reported financial results for the fourth quarter and full year, which ended Dec. 31, 2023.

“NXP delivered full-year 2023 revenue of $13.28 billion, an increase of 1% year-on-year. In the fourth quarter, revenue was $3.42 billion, an increase of 3% year-on-year, above the mid-point of our guidance range. In review, NXP delivered solid results throughout 2023, reflecting strong execution, consistent gross margin, and healthy free cash flow generation despite a challenging semiconductor market environment. We are navigating a soft landing by managing what is in our control, especially limiting over shipment of products to customers,” said Kurt Sievers, NXP president and CEO.

Key Highlights for the Fourth Quarter and Full-year 2023:
• Fourth quarter revenue was $3.42 billion, up 3% year-on-year. Full-year revenue was $13.28 billion, up 1% year-on-year.
• Fourth quarter GAAP gross margin was 56.6%, GAAP operating margin was 26.5% and GAAP diluted net income per share was $2.68. Full-year GAAP gross margin was 56.9%, GAAP operating margin was 27.6% and GAAP diluted net income per share was $10.70.
• Fourth quarter non-GAAP gross margin was 58.7%, non-GAAP operating margin was 35.6%, and non-GAAP diluted net income per share was $3.71. Full-year non-GAAP gross margin was 58.5%, non-GAAP operating margin was 35.1% and non-GAAP diluted net income per share was $14.01.
• Fourth quarter cash flow from operations was $1,137 million, with net capex investments of $175 million, resulting in non-GAAP free cash flow of $962 million. Full-year cash flow from operations was $3,513 million, with net capex investments of $826 million, resulting in non-GAAP free cash flow of $2,687 million.
• On November 2, 2023, NXP announced the investment in and collaboration with Zendar Inc., a software start-up dedicated to revolutionizing autonomous vehicle systems with high-resolution radar, approaching LIDAR performance. NXP and Zendar will collaborate on enhanced high-resolution radar systems by leveraging Distributed Aperture Radar (DAR), allowing a simplified radar system solution. The investment reinforces NXP’s technology and market leadership in automotive radar while strengthening the ecosystem.
• On Nov. 7, 2023, NXP announced the expansion of its scalable S32 vehicle compute platform with the introduction of the S32M2. The purpose-built motor control solution is optimized for efficiency improvement across vehicle edge node applications. It addresses the needs of the emerging software-defined electric vehicle market and enables carmakers to fully optimize product development and to maximize software re-use across S32 platform implementations.
• On November 28, 2023, NXP announced the Trimension NCJ29D6, a fully integrated automotive single-chip Ultra-Wideband (UWB) family combining next-generation secure and precise real-time localization with short-range radar to address multiple use cases with a single system, including secure car access, child presence detection, intrusion alert, gesture recognition and more. Integrated by major automotive OEMs, devices from this family are expected to be on the road in model year 2025 vehicles.