The stabilization problem concerning the user datagram protocol (UDP) for networked control systems (NCSs) is investigated in this paper. More specifically, both the state and control signal can be lost during transmission, and the networked induced delay occurs while the control signal delivered to the actuator. On the other hand, no communication channel can be accessed from the actuator to the estimator (no acknowledge signal). The innovations of this paper include: (1) Based on the modified Riccati-ZXL equations, the necessary and sufficient stabilization conditions are developed for the NCSs with packet losses and transmission delay (UDP case); (2) We have verified that the separation principle holds for the finite horizon optimal output feedback control problem; (3) For 1-dimensional case, the maximal delay bound and the maximal packet losses rate are derived.