News

ON Semiconductor Reports Second-Quarter 2001 Financial Results

July 25, 2001 by Jeff Shepard

ON Semiconductor Corp. (Phoenix, AZ) announced that total product revenues in the second quarter of 2001 were $307.3 million, a decrease of 14 percent from the first quarter of 2001, and a decrease of 38 percent compared to the second quarter of 2000. Excluding amortization of intangibles, restructuring and other non-recurring charges, the company had a net loss of $61.9 million, or $0.36 per diluted share, in the second quarter of 2001. In comparison, the company had a net income of $24.2 million, or $0.13 per diluted share, in the second quarter of 2000.

Including amortization of intangibles, restructuring and other non-recurring charges, the company reported a net loss of $152.2 million, or $0.88 per diluted share, in the second quarter of 2001, compared to a net loss of $12.7 million, or $0.09 per diluted share, in the second quarter of 2000. The loss per share in the second quarter of 2001 includes a tax reserve of $0.15 per share against the benefit of the net operating loss incurred during the quarter.

Product revenues for the first six months of 2001 were $664.3 million, a decrease of 27 percent compared to the first six months of 2000.

Excluding amortization of intangibles, restructuring charges, cumulative effect of an accounting change and other non-recurring charges, the company had a net loss of $74.6 million, or $0.43 per diluted share, in the first six months of 2001. In comparison, the company had a net income of $35.1 million, or $0.17 per diluted share, in the first six months of 2000. Including amortization of intangibles, restructuring charges, cumulative effect of an accounting change and other non-recurring charges, the company had a net loss of $311.6 million, or $1.80 per diluted share, in the first six months of 2001 compared to a net loss of $4.8 million, or $0.09 per diluted share, in the first six months of 2000.

"The actions we have taken will protect our core competencies, maintain focus on research and development, enhance customer service, accelerate decision making, and align our cost structure to be more competitive," said Steve Hanson, president and CEO. "We reiterate our outlook that third-quarter revenues are expected to be down from the second quarter. We anticipate that the third quarter will be the trough of our cycle as customer inventory levels align more with end-market demand."