Early Access

10-QPeriod: Q2 FY2023

NXP Semiconductors N.V. Quarterly Report for Q2 Ended Apr 2, 2023

Filed May 2, 2023For Securities:NXPI

Summary

NXP Semiconductors N.V. (NXPI) reported its first-quarter 2023 results, demonstrating resilience in a challenging macroeconomic environment. Revenue for the quarter was $3,121 million, a slight decrease of 0.5% year-over-year, primarily impacted by lower demand in the Industrial IoT and Mobile end markets, offset by strong performance in Automotive and Communication Infrastructure & Other. Despite the marginal revenue dip, the company maintained a stable gross margin of 56.7%. Net income attributable to stockholders was $615 million, resulting in diluted earnings per share of $2.35, compared to $657 million and $2.48 in the prior year's quarter, respectively. The company generated robust operating cash flow of $632 million and ended the quarter with a strong cash position of $3,930 million, providing ample liquidity. Management reiterated confidence in its ability to fund operations, capital expenditures, and dividends for at least the next twelve months.

Financial Statements
Beta
Revenue$3.12B
Cost of Revenue$1.35B
Gross Profit$1.77B
R&D Expenses$577.00M
SG&A Expenses$280.00M
Operating Expenses$942.00M
Operating Income$825.00M
Interest Expense$111.00M
Net Income$615.00M
EPS (Basic)$2.37
EPS (Diluted)$2.35
Shares Outstanding (Basic)259.58M
Shares Outstanding (Diluted)261.21M

Key Highlights

  • 1Revenue for Q1 2023 was $3,121 million, a marginal decrease of 0.5% year-over-year, reflecting mixed end-market demand.
  • 2Automotive revenue saw a significant increase of 17.4% to $1,828 million, driven by electrification and driver assistance trends.
  • 3Industrial & IoT and Mobile end markets experienced revenue declines of 26.1% and 35.2%, respectively, due to lower demand.
  • 4Gross profit margin remained stable at 56.7% year-over-year, indicating effective cost management.
  • 5Diluted Earnings Per Share (EPS) for the quarter was $2.35, a decrease from $2.48 in Q1 2022.
  • 6Operating cash flow remained strong at $632 million, showcasing the company's operational efficiency.
  • 7The company ended the quarter with a healthy cash and cash equivalents balance of $3,930 million, supported by an additional $2,500 million available under its revolving credit facility.

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