NXP Semiconductors NV (NASDAQ:NXPI) stock rose 0.83% (As on February 6, 11:45:03 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 23. 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.
Additionally, 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. The company has also 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.
In addition, 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.
NXPI in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.71, beating the analysts’ estimates for the adjusted earnings per share of $3.64. The company had reported the adjusted revenue growth of 3 percent to $3.42 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $3.4 billion. Fourth quarter non-GAAP gross margin was 58.7 percent and non-GAAP operating margin was 35.6 percent.
For the current quarter ending in March, NXP expects its per-share earnings to range from $2.97 to $3.38. The company said it expects revenue in the range of $3.03 billion to $3.23 billion for the fiscal first quarter.