Gross profit totaled $1.65 billion, a year-over-year increase of 40.8%. Gross margin of 46.7% increased 770 basis points year-over-year, principally due to improved product mix and favorable pricing, and was 170 basis points above the mid-point of the Company’s guidance.
Operating income increased 99.5% to $877 million, compared to $440 million in the year-ago quarter. The Company’s operating margin increased 1,010 basis points on a year-over-year basis to 24.7% of net revenues, compared to 14.6% in the 2021 first quarter.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in both Automotive and in Power Discrete.
- Operating profit increased by 175.1% to $235 million. Operating margin was 18.7% compared to 8.2%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in both Analog and MEMS and decreased in Imaging.
- Operating profit increased by 31.5% to $246 million. Operating margin was 22.6% compared to 17.2%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue increased in both Microcontrollers and in RF Communications.
- Operating profit increased by 137.3% to $407 million. Operating margin was 34.0% compared to 19.4%.
Net income and diluted earnings per share increased to $747 million and $0.79, respectively, compared to $364 million and $0.39, respectively, in the year-ago quarter. Following the adoption of the new U.S. GAAP reporting guidance applicable to convertible debt effective January 1, 2022, Q1 2022 net income does not include phantom interests associated with convertible bonds and diluted earnings per share reflects the full dilutive effect of outstanding convertible bonds. Prior periods have not been restated.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q 1 202 2 | Q 4 20 2 1 | Q 1 20 2 1 | Q 1 202 2 | Q 1 20 2 1 | TTM Change |
| Net cash from operating activities | 945 | 881 | 682 | 3,323 | 2,376 | 39.9% |
| Free cash flow (non-U.S. GAAP) | 82 | 314 | 261 | 941 | 776 | 21.3% |
Capital expenditure payments, net of proceeds from sales, were $840 million in the first quarter. In the year-ago quarter, capital expenditures, net, were $405 million.
