ON Semiconductor aims to Out Grow the Industry in 2016
ON Semiconductor Corporation announced that total revenues in the fourth quarter of 2015 were $840.3 million, down approximately 7.1 percent compared to the third quarter of 2015. During the fourth quarter of 2015, the company reported GAAP net income of $54.1 million, or $0.13 per diluted share. The fourth quarter 2015 GAAP net income was negatively impacted by approximately $24.8 million of special items. Adjusted EBITDA for the fourth quarter of 2015 was $147.3 million. Adjusted EBITDA for the third quarter of 2015 was $163.1 million. During the fourth quarter, the company repurchased approximately 1.9 million shares of common stock for approximately $20.0 million.
Total revenues for 2015 were $3,495.8 million, an increase of approximately 10.6 percent from $3,161.8 million in 2014. During 2015, the company reported GAAP net income of $206.2 million, or $0.48 per diluted share. The 2015 GAAP net income included charges of $150.7 million from special items, including $135.7 million of amortization of acquisition related intangible assets, which are largely attributed to our acquisitions of Truesense Imaging and Aptina Imaging. During 2014, the company reported GAAP net income of $189.7 million, or $0.43 per diluted share. The 2014 GAAP net income included net charges of $144.6 million from special items.
The companyâ€™s GAAP gross margin in 2015 was 34.1 percent. GAAP gross margin in 2015 included a net benefit of approximately $0.8 million from special items. Non-GAAP gross margin in 2015 was 34.1 percent. The companyâ€™s GAAP gross margin in 2014 was 34.3 percent. GAAP gross margin in 2014 included a net charge of approximately $30.9 million, or approximately 100 basis points, from special items. Non-GAAP gross margin in 2014 was 35.3 percent.
"We delivered strong performance in the fourth quarter by exercising robust cost discipline in times of heightened macroeconomic uncertainty and softening demand. In 2015, we significantly expanded our footprint in our key strategic markets and returned approximately $348 million to shareholders through our share repurchase program," said Keith Jackson, president and CEO of ON Semiconductor. "Our growth drivers remain intact, and we are well positioned to again outgrow the industry in 2016."
"While forecasting trends in current environment is challenging, we have noticed a strengthening in orders during the current quarter. In the current environment of macroeconomic uncertainty, we intend to maintain our costs and expenses discipline while driving growth."
"Based upon product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenue will be approximately $800 million to $840 million in the first quarter of 2016," Jackson said. "Backlog levels for the first quarter of 2016 represent approximately 80 to 85 percent of our anticipated first quarter 2016 revenue. Average selling prices for the first quarter of 2016 are expected to be down approximately two percent when compared to the fourth quarter of 2015. The outlook for the first quarter of 2016 includes stock-based compensation expense of approximately $11 million to $13 million."