FY22 Revenues Increased 26.4% to $16.13 bn Shared STMicroelectronics
STMicroelectronics has reported U.S. GAAP financial results for the fourth quarter ended December 31, 2022. ST reported fourth quarter net revenues of $4.42 billion, gross margin of 47.5%, operating margin of 29.1%, and net income of $1.25 billion or $1.32 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO said, “In Q4, ST delivered revenues and gross margin above the mid-point of the guidance. FY22 revenues increased 26.4% to $16.13 billion, driven by strong demand in automotive and industrial, and our engaged customer programs. Operating margin increased to 27.5% from 19.0% in FY21 and net income almost doubled to $3.96 billion. We invested $3.52 billion in CAPEX while delivering free cash flow of $1.59 billion. Our first quarter business outlook, at the mid-point, is for net revenues of $4.20 billion, increasing year-over year by 18.5% and decreasing sequentially by 5.1%; gross margin is expected to be about 48.0%. For 2023, we plan to invest about $4.0 billion in CAPEX, mainly to increase our 300mm wafer fabs and silicon carbide manufacturing capacity including our substrate initiative. Based on our strong customer demand and increased manufacturing capacity we will drive the Company based on a plan for FY23 revenues in the range of $16.8 billion to $17.8 billion.”
Net revenues totaled $4.42 billion, representing a year-over-year increase of 24.4%. On a year-over-year basis, the Company recorded higher net sales in all product groups and sub-groups except the Analog and MEMS sub-groups. Year over-year net sales to OEMs and Distribution increased 26.8% and 19.5%, respectively. On a sequential basis, net revenues increased 2.4%, 60 basis points above the mid-point of the Company’s guidance. ADG and MDG reported increases in net revenues on a sequential basis, while AMS decreased.
Gross profit totaled $2.10 billion, representing a year-over-year increase of 30.7%. Gross margin of 47.5%, 20 basis points above the mid-point of the Company’s guidance, increased 230 basis points year-over-year, principally due to favorable pricing, improved product mix, positive currency effects, net of hedging, partially offset by the inflation of manufacturing input costs.