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ON Semiconductor Reports Q3

PHOENIX — ON Semiconductor Corporation (Nasdaq: ONNN) today announced that total revenues in the third quarter of 2010 were $600.7 million, an increase of approximately 3 percent from the second quarter of 2010. During the third quarter of 2010, the company reported GAAP net income of $87.8 million, or $0.20 per fully diluted share. The third quarter 2010 GAAP net income included net charges of $20.0 million, or $0.05 per fully diluted share, from special items. Also included in the operating expenses during the third quarter of 2010 was approximately $5 million of acquisition related expenses. The special item details can be found in the attached schedules. During the second quarter of 2010, the company reported a GAAP net income of $78.7 million, or $0.18 per fully diluted share.

Third quarter 2010 non-GAAP net income was $107.8 million, or $0.25 per share on a fully diluted basis, and includes stock-based compensation expense. Second quarter 2010 non-GAAP net income was $103.4 million, or $0.24 per share on a fully diluted basis, and includes stock-based compensation expense. A reconciliation of these non-GAAP financial measures (and other non-GAAP measures used elsewhere in this release, such as non-GAAP gross margin 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 www.onsemi.com.

On a mix-adjusted basis, average selling prices in the third quarter of 2010 were generally flat when compared to the second quarter of 2010. GAAP gross margin in the third quarter was 41.0 percent. Non-GAAP gross margin in the third quarter of 2010 was 41.3 percent and includes stock-based compensation expense. GAAP gross margin in the third quarter included a net charge of approximately $1.6 million, or approximately 30 basis points, from special items. The special items details can be found in the attached schedules.

Adjusted EBITDA for the third quarter of 2010 was $150.6 million and includes stock-based compensation expense. Adjusted EBITDA for the second quarter of 2010 was $143.1 million and includes stock-based compensation expense.

“In third quarter of 2010 the company posted another quarter of strong financial results and key business accomplishments,” said Keith Jackson, ON Semiconductor president and CEO. “We recorded the highest revenues in the company’s history as well as the highest adjusted EBITDA and non-GAAP earnings per fully diluted share. In July 2010, we also signed a definitive purchase agreement to acquire SANYO Semiconductor. We have been working with SANYO Electric and SANYO Semiconductor on the transaction closing conditions, and given the timetable required to complete a number of these closing conditions, we currently believe the transaction will close in the beginning of first quarter of 2011, rather than the fourth quarter of 2010 as originally estimated. ON Semiconductor does not currently believe it will need to access the capital markets to finance the transaction, nor does it currently anticipate the need to issue any new shares of common stock in order to close the transaction.”

{complink 3993|ON Semiconductor Corp.}

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