News Column

ON Semiconductor Reports Second Quarter 2014 Results

August 5, 2014

ENP Newswire - 05 August 2014

Release date- 01082014 - PHOENIX, Ariz. - ON Semiconductor Corporation (Nasdaq: ONNN), driving energy efficient innovation, today announced that total revenues in the second quarter of 2014 were $757.6 million, up approximately 7.2 percent compared to the first quarter of 2014.

During the second quarter of 2014, the company reported GAAP net income of $88.0 million, or $0.20 per diluted share.

The second quarter 2014 GAAP net income was negatively impacted by approximately $1.7 million of special items.

Second quarter 2014 non-GAAP net income was $89.7 million, or $0.20 per diluted share, compared to $75.2 million, or $0.17 per diluted share, for the first quarter of 2014.

Additional information on revenue by end market, region, distribution channel and business unit, and share count can be found on the 'Investors' section of our website.

On a mix-adjusted basis, average selling prices for ON Semiconductor in the second quarter of 2014 were down slightly more than one percent when compared to the first quarter of 2014. Total company GAAP gross margin in the second quarter was 36.0 percent and total company non-GAAP gross margin in the second quarter was 36.2 percent. For the second quarter of 2014, GAAP operating margin was 10.8 percent, whereas non-GAAP operating margin was 13.4 percent.

Adjusted EBITDA for the second quarter of 2014 was $146.5 million. Adjusted EBITDA for the first quarter of 2014 was $131.0 million.

'Our strong revenue growth and margin expansion in the second quarter clearly point to our momentum in key markets and improving operating performance,' said Keith Jackson, president and CEO of ON Semiconductor. 'Our strategy of focusing on automotive, industrial, and smartphone end-markets is yielding results. Our revenue in these markets, which comprise approximately 65 percent of our total revenue, grew by more than 10 percent year-over-year during the first half of the year, well ahead of our stated goal of annual growth in the mid to high single digit percentage point range.

'Revenue growth along with an optimal cost structure and additional benefits from previously announced restructuring measures should enable us to generate strong operating leverage going forward. With our recent acquisition of Truesense, the pending acquisition of Aptina Imaging, and recently announced foundry partnership with Fujitsu Semiconductor, we are well positioned for further growth in our revenue and earnings.'


'Based upon product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenue will be approximately $765 to $795 million in the third quarter of 2014.' Jackson said. 'Backlog levels for the third quarter of 2014 represent approximately 80 to 85 percent of our anticipated third quarter 2014 revenue.

Average selling prices for the third quarter of 2014 are expected to be down approximately one to two percent when compared to the second quarter of 2014. The outlook for the third quarter of 2014 includes stock-based compensation expense of approximately $11 to $13 million. Our guidance for the third quarter of 2014 does not include any contribution from our pending acquisition of Aptina, Inc.'

About ON Semiconductor

ON Semiconductor (Nasdaq: ONNN) is driving energy efficient innovations, empowering customers to reduce global energy use. The company offers a comprehensive portfolio of energy efficient power and signal management, logic, discrete and custom solutions to help design engineers solve their unique design challenges in automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospace and power supply applications.

ON Semiconductor operates a responsive, reliable, world-class supply chain and quality program, and a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe, and the Asia Pacific regions. For more information, visit

ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the company references its Web site in this news release, such information on the Web site is not to be incorporated herein.

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of ON Semiconductor. These forward-looking statements are often characterized by the use of words such as 'believes,' 'estimates,' 'expects,' 'projects,' 'may,' 'will,' 'intends,' 'plans,' 'should,' or 'anticipates,' or by discussions of strategy, plans or intentions.

All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements.

Among these factors are our revenues and operating performance, poor economic conditions and markets (including current financial conditions), effects of exchange rate fluctuations, the cyclical nature of the semiconductor industry, changes in demand for our products, changes in inventories at our customers and distributors, technological and product development risks, enforcement and protection of our intellectual property rights and related risks, availability of raw materials, electricity, gas, water and other supply chain uncertainties, our ability to effectively shift production to other facilities when required, in order to maintain supply continuity for our customers, variable demand and the aggressive pricing environment for semiconductor products, our ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality for our current products, competitor actions including the adverse impact of competitor product announcements, pricing and gross profit pressures, loss of key customers, order cancellations or reduced bookings, changes in manufacturing yields, control of costs and expenses and realization of cost savings and synergies from restructuring activities, significant litigation, risks associated with decisions to expend cash reserves for various uses such as debt prepayment, stock repurchases or acquisitions rather than to retain such cash for future needs, risks associated with acquisitions and dispositions (including difficulties encountered in accurately predicting the future financial performance of acquired businesses), risks associated with our substantial leverage and restrictive covenants in our debt agreements that may be in place from time to time, risks associated with our worldwide operations, including foreign employment and labor matters associated with unions and collective bargaining arrangements, as well as man-made and/or natural disasters affecting our operations and finances/financials, the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally, risks and costs associated with increased and new regulation of corporate governance and disclosure standards, risks related to new legal requirements and risks involving environmental or other governmental regulation.

Additional factors that could cause results to differ materially from those projected in the forward-looking statements are contained in ON Semiconductor's 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC') on February 21, 2014 ('2013 Form 10-K'), Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of our filings with the SEC.

You should carefully consider the trends, risks and uncertainties described in this document, the 2013 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities.

If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

Media Contact:

Anne Spitza

Tel: (602) 326-0071

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: ENP Newswire

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters