ON Semiconductor Reports First Quarter 2009 Results
ON Semiconductor Corp. announced that total revenues in the first quarter of 2009 were $379.1 million, a decrease of approximately 22% from the fourth quarter of 2008. During the first quarter of 2009, the company reported a GAAP net loss of $33.9 million, or $0.08 per fully diluted share. The first quarter 2009 GAAP net loss included net charges of $47.6 million, or $0.11 per fully diluted share, from special items.
During the fourth quarter of 2008, the company reported a GAAP net loss of $524.7 million, or $1.28 per fully diluted share which has been retroactively adjusted for the adoption of FASB Staff Position APB 14-1. During the fourth quarter the company recorded a charge of approximately $544.5 million arising from the company’s annual goodwill impairment testing. The goodwill impairment was a non-cash charge. First quarter 2009 non-GAAP net income was $13.7 million, or $0.03 per share on a fully diluted basis. Fourth quarter 2008 non-GAAP net income was $62.0 million, or $0.15 per share on a fully diluted basis.
On a mix-adjusted basis, average selling prices in the first quarter of 2009 were down less than three% when compared to the fourth quarter of 2008. The company’s gross margin in the first quarter was 29.6%. Non-GAAP gross margin in the first quarter of 2009 was 31.3%. GAAP gross margin in the first quarter included a net charge of approximately $6.6 million, or approximately 170 basis points, from special items. Adjusted EBITDA for the first quarter of 2009 was $58.3 million. Adjusted EBITDA for the fourth quarter of 2008 was $103.8 million.
"The first quarter of 2009 was a challenging period for the semiconductor industry," said Keith Jackson, ON Semiconductor President and CEO. "Due to the slowdown in the macro economy, along with the reduction of inventory levels throughout the supply chain, we believe the semiconductor industry and ON Semiconductor shipped fewer products than the end-market consumed. In response to the slowdown of demand, we took aggressive actions to reduce our overall spending levels, reducing our SG&A and R&D expenses by approximately $24 million or 17% versus the third quarter of 2008 when excluding the benefits from the settlement of intellectual property infringement cases. In addition, we completed the closure of one wafer fabrication facility in the first quarter of 2009 and are on schedule to close two additional facilities by the end of the third quarter of this year and a fourth facility by the end of the first quarter of 2010 as previously announced. As we’ve moved through the first quarter, we experienced a continual improvement in the order activity for the first and second quarter of 2009 as customers became more comfortable with the new economic reality and their forecasts. We believe, consistent with industry information available to us, we have passed the bottom of the current semiconductor cycle and are expecting to grow our revenues in the second quarter of 2009."