Onsemi on Feb. 6 announced its fourth quarter and fiscal year 2022 results with the following highlights:
Fourth quarter revenue of US$2,103.6 million increased by 14% year-over-year, and fourth quarter GAAP gross margin of 48.5% increased by 343 bps year-over-year and non-GAAP gross margin of 48.4% increased by 321 bps year-over-year. It also saw record fourth quarter automotive revenue of US$$989 million grew 54% year-over-year.
For fiscal 2022, onsemi saw record revenue of US$8.3 billion, representing 24% year-over-year growth. GAAP gross margin of 49.0% and non-GAAP gross margin of 49.2% for 2022 were reported. Free cash flow for fiscal year 2022 increased 22% year-over-year and was 20% of revenue
"We delivered outstanding results in 2022 as we continue our disciplined execution and transformation. Revenue for 2022 grew by 24%, non-GAAP gross margin expanded by 880 bps, and non-GAAP operating income grew four times faster than revenue driven by our focus on the secular megatrends of electric vehicles, ADAS, alternative energy and industrial automation. We are focused on our key strategic initiatives such as ramping silicon carbide in support of our long-term supply agreements. Despite the current macroeconomic uncertainty, the long-term outlook for our business remains robust with a 38% year-over-year increase in our design win funnel," said Hassane El-Khoury, President and CEO of onsemi.
The company also announced that its Board of Directors has approved a new share repurchase program with authorization to repurchase up to US$3 billion of shares of the company's common stock through December 31, 2025.
"We are committed to a balanced capital allocation strategy to drive long-term value for our shareholders. With the confidence we have in our strategy to invest for long-term profitable growth, the Board of Directors and leadership team are pleased to announce a new US$3 billion share repurchase authorization. Driven by a three-fold increase in free cash flow generation since the start of our transformation journey, we have increased flexibility with a repurchase authorization twice that of the previous authorization, which expired on December 31, 2022," said Thad Trent, Executive Vice President and CFO of onsemi.
