01—Abstract
Summary
Summary of the 10-K filed February 22, 2024. Cited figures are marked; the original filing is the authoritative source.
NXP Semiconductors N.V. reported steady revenue for the fiscal year 2023, reaching $13.28 billiona, a slight increase from $13.20 billion in 2022.
The company saw robust growth in its Automotive segment, which increased by 8.8%, driven by higher semiconductor content per vehicle due to advancements in electrification and autonomous driving features. This growth partially offset declines in the Industrial & IoT and Mobile segments, which experienced year-over-year decreases of 13.3% and 17.4%, respectively. Financially, NXP generated strong operating cash flow of $3.51 billionb and returned $2.06 billion to shareholders through dividends and share repurchases.
The company maintained a healthy cash position of $4.27 billionc. Research and development expenses increased by 12.6% to $2.42 billion, reflecting continued investment in innovation, particularly in areas like ADAS, in-vehicle networking, and edge computing. The company also announced a significant investment of approximately $550 million in the European Semiconductor Manufacturing Company (ESMC) to bolster European semiconductor production capabilities.
02—Key points
Key Highlights
- Revenue remained relatively flat year-over-year, reaching $13.28 billion in 2023.
- Automotive segment revenue grew by 8.8% to $7.48 billion, driven by increased semiconductor content per vehicle.
- Industrial & IoT and Mobile segments experienced revenue declines of 13.3% and 17.4%, respectively.
- Operating cash flow was strong at $3.51 billion, with $2.06 billion returned to shareholders via dividends and repurchases.
- R&D investment increased by 12.6% to $2.42 billion, signaling continued focus on innovation.
- NXP announced a commitment to invest approximately $550 million in the European Semiconductor Manufacturing Company (ESMC).
- The company maintained a solid cash position of $4.27 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, NXP Semiconductors N.V. kept $0.21.
- Revenue$13.28B100.0%
- Cost of revenue−$5.72B43.1%
- Gross profit$7.55B56.9%
- Operating costs−$3.89B29.3%
- Operating income$3.66B27.6%
- Interest, other & tax−$839.0M6.3%
- Net income$2.82B21.3%
Where FY2023 revenue went
$13.28B- Cost of revenue: $5.72B, 43% of revenue
- Net income: $2.82B, 21% of revenue
- R&D: $2.42B, 18% of revenue
- SG&A: $1.16B, 8.7% of revenue
- Other operating costs: $315.0M, 2.4% of revenue
- Interest, other & tax: $839.0M, 6.3% of revenue
Kept 21% as net incomeOther operating costs $315.0M · 2.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 22, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $13.28B$13.21B | +0.5% |
| Cost of Revenue | $5.72B$5.69B | +0.6% |
| Gross Profit | $7.55B$7.52B | +0.5% |
| R&D Expenses | $2.42B$2.15B | +12.6% |
| SG&A Expenses | $1.16B$1.07B | +8.7% |
| Operating Expenses | $3.88B$3.72B | +4.1% |
| Operating Income | $3.66B$3.80B | −3.6% |
| Interest Expense | $438.00M$427.00M | +2.6% |
| Net Income | $2.82B$2.79B | +1.3% |
| EPS (Basic) | $10.83$10.64 | +1.8% |
| EPS (Diluted) | $10.70$10.55 | +1.4% |
| Shares Outstanding (Basic) | 258.38M261.88M | −1.3% |
| Shares Outstanding (Diluted) | 261.37M264.05M | −1.0% |
05—Questions
Frequently Asked Questions
What was NXP's revenue performance in 2023?
NXP Semiconductors reported a total revenue of $13.28 billion for the fiscal year 2023, a slight increase of 0.5% compared to $13.20 billion in 2022. This growth was primarily driven by the Automotive segment.
How did NXP's different end markets perform in 2023?
The Automotive segment saw strong growth of 8.8%, while the Communication Infrastructure & Other segment grew by 5.4%. However, the Industrial & IoT segment declined by 13.3%, and the Mobile segment decreased by 17.4%.
What is NXP's financial health and capital allocation strategy?
NXP generated robust operating cash flow of $3.51 billion in 2023 and maintained a strong cash and short-term deposit balance of $4.27 billion. The company returned $2.06 billion to shareholders through dividends and share repurchases, demonstrating a commitment to returning capital while continuing to invest in R&D and strategic initiatives like the ESMC investment.
What are the key areas of investment for NXP?
NXP significantly increased its R&D spending by 12.6% to $2.42 billion, focusing on areas like Advanced Driver-Assistance Systems (ADAS), in-vehicle networks, edge computing, and 5G technologies. Additionally, the company is investing $550 million in the European Semiconductor Manufacturing Company (ESMC) to support advanced manufacturing capabilities in Europe.
06—Continue