ON Semi Reports Second Quarter 2009 Results
ON Semiconductor Corp. announced that total revenues in the second quarter of 2009 were $419.8 million, an increase of approximately 11% from the first quarter of 2009. During the second quarter of 2009, the company reported a GAAP net loss of $3.0 million, or $0.01 per fully diluted share. The second quarter 2009 GAAP net loss included net charges of $41.7 million, or $0.10 per fully diluted share, from special items. During the first quarter of 2009, the company reported a GAAP net loss of $33.9 million, or $0.08 per fully diluted share. Second quarter 2009 non-GAAP net income was $38.7 million, or $0.09 per share on a fully diluted basis. First quarter 2009 non-GAAP net income was $13.7 million, or $0.03 per share on a fully diluted basis.
On a mix-adjusted basis, average selling prices in the second quarter of 2009 were down approximately one% when compared to the first quarter of 2009. The company’s gross margin in the second quarter was 32.9%. Non-GAAP gross margin in the second quarter of 2009 was 34.7%. GAAP gross margin in the second quarter included a net charge of approximately $7.4 million, or approximately 180 basis points, from special items. The special item details can be found in the attached schedules.
Adjusted EBITDA for the second quarter of 2009 was $78.3 million. Adjusted EBITDA for the first quarter of 2009 was $57.9 million.
"After a very challenging period for the industry and ON Semiconductor, we are beginning to see stabilization in each of our end-markets and a resumption of seasonal growth patterns in our consumer-oriented end markets," said Keith Jackson, ON Semiconductor President and CEO. "The aggressive actions the company has taken to reduce our overall cost structure, including the rationalization of our manufacturing network, puts ON Semiconductor in a favorable position when the industry fully recovers from the current economic downturn. These actions also further improve our leadership position in manufacturing efficiency within the industry. We continue to rationalize our inventory levels having reduced internal inventories for the second consecutive quarter. In total, we have reduced internal inventories by approximately 20%, or $66 million, since the fourth quarter of 2008. While there is still great uncertainty on the trajectory of the economic recovery, we believe the worst of the crisis is behind us. As the overall market continues to recover, we believe our ability to increase the cash flow of the business from current levels will strengthen."