News

ON Semi Reports Fourth-Quarter, Fiscal 2002 Results

February 11, 2003 by Jeff Shepard

ON Semiconductor Corp. (Phoenix, AZ) announced that total revenues in the fourth quarter of 2002 were $266 million, a decrease of $6 million, or two percent, from the third quarter of 2002 and a decrease of $1 million, or 0.5 percent, from the fourth quarter of 2001. The company reported a net loss of $42 million in the fourth quarter of 2002, which included $17.5 million of restructuring and other charges, as compared to a net loss of $23 million in the third quarter of 2002.

On a per share basis, the company reported a loss of $0.24 per share in the fourth quarter of 2002, which included $0.10 per share of restructuring and other charges, as compared to a loss of $0.13 per share in the third quarter of 2002. During the fourth quarter of 2002, the gross margin declined by 110 basis points to 27.6 percent from 28.7 percent in the third quarter of 2002.

In the fourth quarter of 2002, the company announced a new cost-reduction initiative that is expected to reduce costs by $80 million in 2003 and achieve an estimated $125 million in annualized cost savings by the end of 2003, both as compared to the company's annualized costs for the third quarter of 2002. This cost-reduction initiative resulted in the company taking a net $12.6 million of restructuring and other charges in the fourth quarter of 2002, including $1 million of non-cash charges associated with worldwide workforce reductions and other cost-reduction actions. The company also recognized $4.9 million of other severance-related charges in the quarter, including $2.9 million of non-cash stock compensation charges.

Total revenue for 2002 was $1.1 billion, down 11 percent from $1.2 billion in 2001. The net loss for 2002 was $150 million, which included restructuring and other charges of $27.7 million and an extraordinary loss on debt prepayment of $6.5 million, compared to a net loss for 2001 of $847 million, which included restructuring and other charges of $150 million, a cumulative effect of an accounting change of $116 million and a non-recurring charge of $367 million to establish a valuation allowance relating to the company's net deferred tax assets.