News

ON Semiconductor Reports Third-Quarter 2005 Results

October 20, 2005 by Jeff Shepard

ON Semiconductor Corp. (Phoenix, AZ), a supplier of power management solutions, reported that total revenues in the third quarter of 2005 were $313.6 million, an increase of approximately four percent from the second quarter of 2005. During the third quarter of 2005, the company reported net income of $23.5 million, or $0.06 per share on a fully diluted basis, which included restructuring, asset impairments, and other charges of $0.2 million. During the second quarter of 2005, the company reported net income of $18.5 million, or $0.05 per share, which included restructuring, asset impairments, and other charges of $2.8 million or $0.01 per share.

On a mix-adjusted basis, average selling prices in the third quarter of 2005 were down approximately three percent from the second quarter of 2005. The company's gross margin in the third quarter was 33.2 percent, an increase of approximately 70 basis points as compared to the second quarter of 2005. EBITDA for the third quarter of 2005 was $65.4 million and included $0.2 million in restructuring, asset impairments, and other charges. EBITDA for the second quarter of 2005 was $59.5 million and included $2.8 million in restructuring, asset impairments, and other charges. The $0.2 million in restructuring, asset impairments, and other charges for the third quarter of 2005 was primarily for accrued severance and other exit costs related to previously announced restructuring activities.

"In the third quarter of 2005, we continued to successfully grow both revenue and gross margin," said ON Semiconductor President and CEO Keith Jackson. "Our cash, cash equivalents, and short-term investments reached a record high at $272.3 million, and offer the company continued financial flexibility to further reduce interest expense. Our beginning backlog entering the fourth quarter increased sequentially for the second consecutive quarter, and we are excited about our financial prospects for the fourth quarter."