News

ON Semi Reports First Quarter 2008 Results

May 11, 2008 by Jeff Shepard

ON Semiconductor Corp. announced that total revenues in the first quarter of 2008 were $421.9 million, an increase of approximately 3% from the fourth quarter of 2007. During the first quarter of 2008, the company reported GAAP net income of $20.8 million, or $0.07 per share on a fully diluted basis.

First quarter 2008 GAAP net income included a net charge of $44.6 million, or $0.14 per share on a fully diluted basis from special items. During the fourth quarter of 2007, the company reported GAAP net income of $61.1 million, or $0.20 per share on a fully diluted basis. First quarter 2008 non-GAAP net income was $65.4 million or $0.21 per share on a fully diluted basis. Fourth quarter 2007 non-GAAP net income was $68.7 million, or $0.23 per share on a fully diluted basis.

On a mix-adjusted basis, average selling prices in the first quarter of 2008 were down less than two% from the fourth quarter of 2007. The company’s total gross margin in the first quarter was 34.7%. Non-GAAP total gross margin in the first quarter was 37.6%. GAAP gross margin in the first quarter included a net charge of approximately $11.9 million or 290 basis points from special items. Adjusted EBITDA for the first quarter of 2008 was $97.2 million. Adjusted EBITDA for the fourth quarter of 2007 was $102.1 million.

Excluding the impact of the acquisition of AMIS Holdings, Inc. which closed on Mar. 17, 2008, ON Semiconductor had stand alone revenues of approximately $396.4 million in the first quarter of 2008, a decrease of approximately three% from the fourth quarter of 2007. ON Semiconductor also reported first quarter 2008 stand alone GAAP net income of $40.1 million, or $0.14 per share on a fully diluted basis. First quarter 2008 stand alone GAAP net income included approximately $19.1 million, or $0.06 per share on a fully diluted basis from special items.

Excluding the impact of the acquisition, ON Semiconductor had stand alone gross margin of approximately 35.7% in the first quarter of 2008. Stand alone non-GAAP gross margin in the first quarter was 37.0%. ON Semiconductor stand alone GAAP gross margin in the first quarter included a net charge of approximately $5.1 million or 130 basis points from special items. The special item details can be found in the attached schedules. On a stand alone basis, first quarter 2008 gross margin was also impacted from the increase in manufacturing costs associated with the weaker dollar and increases in direct material costs compared to the fourth quarter of 2007.

First quarter 2008 stand alone non-GAAP net income was $59.2 million or $0.20 per share on a fully diluted basis. Fourth quarter 2007 non-GAAP net income was $68.7 million, or $0.23 per share on a fully diluted basis.

"The positive transformation of ON Semiconductor continued in the first quarter of 2008," said Keith Jackson, ON Semiconductor President and CEO. "At the end of December, we closed the acquisition of the CPU Voltage and Thermal Products Group from Analog Devices which boosted our overall computing power management expertise. In the first quarter, we completed the largest acquisition in the company’s history by closing the AMIS Holdings, Inc. transaction. These two transactions greatly enhance our ability to address our customers’ most challenging power management requirements and position ON Semiconductor as a leader in the analog and power management sector."