ON Semiconductor Reports Second Quarter 2015 Results

For the second quarter of 2015, highlights include:

  • Total revenues of $880.5 million
  • GAAP earnings per diluted share of $0.12, non-GAAP earnings per diluted share of $0.22
  • GAAP and non-GAAP gross margin of 34.6 percent
  • GAAP operating margin of 7.7 percent and non-GAAP operating margin of 12.3 percent
  • Repurchased approximately 10.4 million shares for approximately $131 million

PHOENIX, Ariz. — (BUSINESS WIRE) — August 2, 2015 — ON Semiconductor Corporation (Nasdaq: ON), driving energy efficient innovation, today announced that total revenues in the second quarter of 2015 were $880.5 million, up approximately one percent compared to the first quarter of 2015. During the second quarter of 2015, the company reported GAAP net income of $50.7 million, or $0.12 per diluted share. The second quarter 2015 GAAP net income was negatively impacted by approximately $44.7 million of special items, details of which can be found in the attached schedules.

Second quarter 2015 non-GAAP net income was $95.4 million, or $0.22 per diluted share, compared to $87.1 million, or $0.20 per diluted share, for the first quarter of 2015. A reconciliation of these non-GAAP financial measures (and other non-GAAP measures used elsewhere in this release) to the company's most directly comparable measures prepared in accordance with U.S. GAAP are set forth in the attached schedules and on our website at http://www.onsemi.com. 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.

Total company GAAP and non-GAAP gross margin in the second quarter was 34.6 percent. For the second quarter of 2015, GAAP operating margin was 7.7 percent, and non-GAAP operating margin was 12.3 percent.

Adjusted EBITDA for the second quarter of 2015 was $163.5 million. Adjusted EBITDA for the first quarter of 2015 was $155.9 million. During the second quarter, the company repurchased approximately 10.4 million shares of common stock for approximately $131 million.

"Despite a tough macro-economic backdrop during the second quarter, we were able to deliver strong earnings performance driven by solid execution and sharp focus on managing costs," said Keith Jackson, president and CEO of ON Semiconductor. "The current macro-economic uncertainty has impacted demand and order trends. However, following a drop in orders towards the end of the second quarter, we have recently seen stabilization in order trends.

"We believe that our strong product pipeline coupled with our manufacturing and operational prowess should enable us to grow at a faster pace than the semiconductor industry. Despite volatility in the macro-economic environment, customer interest in our product offerings for the automotive, industrial, and smartphone markets continues to increase, and our design win pipeline and breadth of costumer engagements continues to grow."

THIRD QUARTER 2015 OUTLOOK

"Based on product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenue will be approximately $890 to $930 million in the third quarter of 2015," Jackson said. "Backlog levels for the third quarter of 2015 represent approximately 80 to 85 percent of our anticipated third quarter 2015 revenue. The outlook for the third quarter of 2015 includes stock-based compensation expense of approximately $13 million to $15 million."

The following table outlines ON Semiconductor's projected third quarter of 2015 GAAP and non-GAAP outlook.

 

ON SEMICONDUCTOR Q3 2015 BUSINESS OUTLOOK

 
     

Total ON Semiconductor

GAAP

    Special

Items ***

    Total ON Semiconductor

Non-GAAP****

Revenue $890 to $930 million $890 to $930 million
Gross Margin 34% to 36% 34% to 36%
Operating Expenses $232 to $244 million $35 to $37 million $197 to $207 million
Net Interest Expense / Other Expenses $8 to $10 million $8 to $10 million
Convertible Notes, Non-cash Interest Expense* $6 million $6 million
Tax $8 to $12 million $3 to $4 million $5 to $8 million
Diluted Share Count ** 430 million 430 million
 
*   Convertible Notes, Non-cash Interest Expense is calculated pursuant to FASB's Accounting Standards Codification (“ASC”) Topic 470: Debt.
 

**

Diluted share count can vary for, among other things, the actual exercise of options or vesting of restricted stock units, the incremental dilutive shares from the company's convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $18.50, the Non-GAAP diluted share count and Non-GAAP net income per share includes the anti-dilutive impact of the company’s hedge transactions, issued concurrently with the 1.00% Notes. At an average stock price per share between $18.50 and $25.96, the hedging activity offsets the potentially dilutive effect of the 1.00% Notes and warrants.

 

***

Special items may include: amortization of intangible assets; amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; inventory valuation adjustments; purchased in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; non-cash interest expense; income tax adjustments to approximate cash taxes; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary.

 

****

Regulation G and other provisions of the securities laws regulate the use of financial measures that are not prepared in accordance with GAAP. We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that - when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases - provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names.

 
 

1 | 2 | 3 | 4 | 5 | 6 | 7 | 8  Next Page »



Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Principal Circuit Design Engineer for Rambus at Sunnyvale, CA
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy