ON Semiconductor Reports Short-Term Slowing in Q4 2017
ON Semiconductor Corporation today announced that total revenues in the fourth quarter of 2017 were $1,377.5 million, up approximately nine percent compared to the same quarter last year. Fourth quarter revenue was down approximately one percent as compared to revenue in the third quarter of 2017.
"We once again delivered solid results, driven by strong demand for our products and by outstanding operating performance. With a broad portfolio of products for the industrial and automotive end-markets, ON Semiconductor is well positioned to benefit from the fastest growing end-markets in the semiconductor industry," said Keith Jackson, ON Semiconductor president and CEO.
"We believe that we are in the early stages of realizing benefits of our investments in automotive and industrial end-markets. Increased adoption of ADAS, electric vehicles, machine vision and robotics should drive further acceleration in our revenue and margins.
“Customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end-markets.
"Demand for our products remains strong and our design win pipeline continues to expand. Our customers are upbeat about the near to mid-term demand outlook for their businesses. Amid a strong demand environment, industry wide supply-side dynamics remain healthy,” concluded Jackson.
For the fourth quarter of 2017, highlights include:
- Revenue of $1,377.5 million
- GAAP gross margin of 37. 3 percent and non-GAAP gross margin of 37.5 percent
- GAAP operating margin of 12. 1 percent and non-GAAP operating margin of 15.4 percent
- Operating cash flow of $224.3 million and free cash flow of $48.6 million
- GAAP earnings per share of $1.22 and non-GAAP earnings per share of $0.39
For 2017, highlights include:
- Revenue of $5,543.1 million and non-GAAP revenue of $5,388.0 million
- GAAP gross margin of 36.7 percent and non-GAAP gross margin of 37.0 percent
- GAAP operating margin of 12.3 percent and non-GAAP operating margin of 15.0 percent
- Operating cash flow of $1,094.2 million and free cash flow of $706.7 million
- GAAP earnings per share of $1.89 and non-GAAP earnings per share of $1.46
Based on product booking trends, backlog levels and estimated turns levels, the Company anticipates that total revenue in the first quarter of 2018 will be approximately $1,340 to $1,390 million.
The outlook for the first quarter of 2018 includes anticipated stock-based compensation expense of approximately $18 million to $20 million. Net cash paid for income taxes is expected to be $18 million to $22 million.