PHOENIX — (BUSINESS WIRE) — August 3, 2011 — ON Semiconductor Corporation (Nasdaq: ONNN)
For the second quarter of 2011, highlights include:
- Record total revenues of approximately $905.8 million
- Record cash, cash equivalents and short-term investments of $868.8 million
- Record quarterly devices shipped of over 11 billion units
ON Semiconductor Corporation (Nasdaq: ONNN) today announced that total revenues in the second quarter of 2011 were $905.8 million, an increase of approximately 4 percent from the first quarter of 2011. During the second quarter of 2011, the company reported GAAP net income of $41.0 million, or $0.09 per fully diluted share. The second quarter 2011 GAAP net income included net charges of $73.4 million, or $0.16 per fully diluted share, from special items. The special item details can be found in the attached schedules. During the first quarter of 2011, the company reported a GAAP net income of $82.6 million, or $0.18 per fully diluted share.
Second quarter 2011 gross profit and net income was slightly less than anticipated due to a more adverse impact from the March 2011 earthquake and resulting tsunami in Japan, and manufacturing cost increases from commodity prices and foreign currencies.
Second quarter 2011 non-GAAP net income was $114.4 million, or $0.25 per share on a fully diluted basis. First quarter 2011 non-GAAP net income was $121.2 million, or $0.27 per share on a fully diluted basis. A reconciliation of these non-GAAP financial measures (and other non-GAAP measures used elsewhere in this release, such as non-GAAP gross margin, non-GAAP gross profit and adjusted EBITDA) 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/.
On a mix-adjusted basis, average selling prices for ON Semiconductor in the second quarter of 2011 were approximately flat when compared to the first quarter of 2011. Total company GAAP gross margin in the second quarter was 29.4 percent. Total company GAAP gross margin in the second quarter included a net charge of approximately $53.0 million, or approximately 580 basis points, from special items. Total company non-GAAP gross margin in the second quarter was 35.2 percent.
Adjusted EBITDA for the second quarter of 2011 was $176.5 million. Adjusted EBITDA for the first quarter of 2011 was $167.3 million.
“In the second quarter of 2011, we achieved our strongest quarterly revenues in the company’s history and exited the quarter with our highest cash, cash equivalents and short-term investments balance ever,” said Keith Jackson, ON Semiconductor president and CEO. “During the last several years, through internal development activities and acquisitions, we believe we have transformed ON Semiconductor into a premier supplier of high performance, silicon solutions for energy efficient electronics and a Top 20 global supplier of semiconductors.”
“As discussed previously, second quarter 2011 results were negatively impacted by the March 2011 earthquake and resulting tsunami in Japan,” Jackson said. “Revenues for Japan began to stabilize in May and we currently expect to see some slight revenue growth in our overall SANYO Semiconductor business in the third quarter of 2011 compared to the second quarter of 2011. Thanks in large part to the great efforts and teamwork of our employees, all of our factories in Japan were capable of full production during the second half of May. Semiconductor manufacturing cycle times, however, have a lag between when the factories can begin full production and when those final products can be shipped to customers. In the third quarter, we expect a modest impact to revenues from this lost production.”
THIRD QUARTER 2011 OUTLOOK
“While we believe we are prepared to support higher growth if higher demand materializes, given the more challenging global economic climate, we are planning for a broad range of revenue guidance in the third quarter of 2011. Based upon product booking trends, backlog levels and estimated turns levels, we anticipate that total ON Semiconductor revenues will be approximately $895 to $925 million in the third quarter of 2011,” Jackson said. “Backlog levels for the third quarter of 2011 represent approximately 90 percent of our anticipated third quarter 2011 revenues. We expect that average selling prices for the third quarter of 2011 will be flat to down approximately one percent when compared to the second quarter of 2011. The non-GAAP outlook for the third quarter of 2011 includes stock-based compensation expense of approximately $12 million.”
The following table outlines ON Semiconductor’s projected third quarter 2011 GAAP and non-GAAP outlook.
|ON SEMICONDUCTOR Q3 2011 BUSINESS OUTLOOK|
Total ON Semiconductor
|Special||Total ON Semiconductor|
|Revenue||$895 to $925 million||$895 to $925 million|
|Gross Margin||33% to 35%||$10 million||34% to 36%|
|Operating Expenses||$200 to $205 million||$15 million||$185 to $190 million|
|Net Interest Expense / Other Expenses||$12 million||$12 million|
|Convertible Notes, Non-cash Interest Expense*||$9 million||$9 million||$0 million|
|Tax||$8 to $10 million||$3 million||$5 to $7 million|
|Fully Diluted Share Count **||460 million||460 million|