Onsemi (NASDAQ:ON) has released its fourth-quarter and fiscal-year 2022 results. Revenue of $2,103.6 million increased 14% year on year in the fourth quarter. Fourth-quarter GAAP gross margin of 48.5% increased by 343 basis points year on year, while non-GAAP gross margin of 48.4% increased by 321 basis points year on year.
Hassane El-Khoury, President and CEO of onsemi, stated that they delivered outstanding results in 2022 as they continue their disciplined execution and transformation. Revenue increased by 24% in 2022, non-GAAP gross margin increased by 880 basis points, and non-GAAP operating income increased four times faster than revenue due to their focus on the long-term megatrends of electric vehicles, ADAS, alternative energy, and industrial automation. They are focused on our key strategic initiatives, such as increasing silicon carbide production to support their long-term supply agreements. Despite current macroeconomic uncertainty, their business’s long-term outlook remains positive, with a 38% year-over-year increase in their design win funnel.
The company also announced that its Board of Directors has approved a new share repurchase program with the authority to repurchase up to $3 billion in common stock through December 31, 2025.
“To create long-term value for our shareholders, we are committed to a balanced capital allocation strategy. The Board of Directors and leadership team are pleased to announce a new $3 billion share repurchase authorization, demonstrating their confidence in our strategy to invest for long-term profitable growth. We have increased flexibility with a repurchase authorization twice the size of the previous authorization, which expired on December 31, 2022, as a result of a three-fold increase in free cash flow generation since the start of our transformation journey “said Thad Trent, Executive Vice President and Chief Financial Officer of onsemi.
Onsemi may repurchase shares from time to time through open market purchases, privately negotiated transactions, or other means, including through the use of trading plans intended to qualify under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended in accordance with applicable securities laws and other restrictions, under the new share repurchase program. The timing and total amount of share repurchases will be determined by business, economic, and market conditions, corporate and regulatory requirements, stock prices at the time, and other factors. The authorization expires on December 31, 2025, is subject to suspension or termination at any time, and does not obligate the company to acquire any amount of common stock.