ON Semiconductor Reports Second Quarter 2007 Results
ON Semiconductor Corp. announced that total revenues in the second quarter of 2007 were $381.2 million, an increase of approximately 2% from the first quarter of 2007. Total revenues during the second quarter included approximately $355.8 million of product revenues and approximately $25.4 million of manufacturing services revenues.
During the second quarter of 2007, the company reported net income of $63.3 million, or $0.21 per share on a fully diluted basis. Second quarter 2007 results include approximately $3.5 million associated with stock-based compensation expense. During the first quarter of 2007, the company reported net income of $54.0 million, or $0.18 per share on a fully diluted basis. First quarter 2007 results included approximately $3.3 million associated with stock-based compensation expense.
On a mix-adjusted basis, average selling prices in the second quarter of 2007 were down approximately 2 to 3% from the first quarter of 2007. The company’s total gross margin in the second quarter was 38.3%, an increase of approximately 180 basis points as compared to the first quarter of 2007, primarily due to the sale of obsolete leaded parts which helped margins by approximately 100 basis points and improved product mix. Gross margins for product revenue were 41.5%, or an increase of approximately 160 basis points, during the second quarter of 2007 compared to 39.9% during the first quarter of 2007. EBITDA for the second quarter of 2007 was $93.9 million. EBITDA for the first quarter of 2007 was $83.6 million.
"The second quarter of 2007 marks the tenth consecutive quarter of profitability for ON Semiconductor," said Keith Jackson, ON Semiconductor President and CEO. "As our ongoing cash generating capabilities have improved over the last few years, we continue pursuing shareholder friendly actions. In the second quarter of 2007, we used cash on hand to repurchase approximately $55 million of our common stock. On the business front, we continue to be positive about our prospects for the second half of 2007. Our beginning product backlog for the third quarter is up sequentially by over 10% driven by new product wins and product ramps in the Computing, Consumer Electronics and Wireless end-markets. These three end-markets also typically have stronger seasonal demand in the second half of the year driven by "back-to-school" and holiday platform builds."